ILLINOIS REGISTER RULES OF GOVERNMENTAL AGENCIES
PUBLISHED BY JESSE WHITE • SECRETARY OF STATE
Index DepartmentAdministrative Code Division111 E. Monroe St.Springfield, IL 62756217-782-7017www.cyberdriveillinois.com
Printed on recycled paper
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TABLE OF CONTENTS
January 15, 2016 Volume 40, Issue 3
PROPOSED RULES COMMERCE COMMISSION, ILLINOIS
Standards of Service Applicable to 9-1-1 Emergency Systems
83 Ill. Adm. Code 725............................................................................438
SECRETARY OF STATE
Regulations Under Illinois Securities Law of 1953
14 Ill. Adm. Code 130............................................................................441
ADOPTED RULES CHIEF PROCUREMENT OFFICER FOR HIGHER EDUCATION
Chief Procurement Officer for Public Institutions of
Higher Education Standard Procurement
44 Ill. Adm. Code 4…............................................................................456
CHILDREN AND FAMILY SERVICES, DEPARTMENT OF
Reports of Child Abuse and Neglect
89 Ill. Adm. Code 300............................................................................648
Placement and Visitation Services
89 Ill. Adm. Code 301............................................................................666
Services Delivered by the Department of Children and
Family Services
89 Ill. Adm. Code 302............................................................................693
Access to and Eligibility for Child Welfare Services
89 Ill. Adm. Code 304............................................................................708
Adoption Services for Children for Whom the Department of
Children and Family Services is Legally Responsible
89 Ill. Adm. Code 309............................................................................720
Permanency Planning
89 Ill. Adm. Code 315............................................................................743
Administrative Case Reviews and Court Hearings
89 Ill. Adm. Code 316............................................................................767
Interstate Placement of Children
89 Ill. Adm. Code 328............................................................................780
Service Appeal Process
89 Ill. Adm. Code 337............................................................................786
Appeal of Foster Family Home License Denials by
Relative Caregivers
89 Ill. Adm. Code 338............................................................................796
Authorized Child Care Payments
89 Ill. Adm. Code 359............................................................................802
Licensing Standards for Foster Family Homes
89 Ill. Adm. Code 402............................................................................808
NATURAL RESOURCES, DEPARTMENT OF
ii
Regulations for the Letting of Concessions, Farm Leases,
Sale of Buildings and Facilities, and Demolitions
17 Ill. Adm. Code 150............................................................................825
White-Tailed Deer Hunting by Use of Bow and Arrow
17 Ill. Adm. Code 670............................................................................829
SECRETARY OF STATE
Procedures and Standards
92 Ill. Adm. Code 1001..........................................................................834
EMERGENCY RULES COMMERCE COMMISSION, ILLINOIS
Standards of Service Applicable to 9-1-1 Emergency Systems
83 Ill. Adm. Code 725............................................................................961
Requirements for Businesses with Private Business Switch Service to
Comply with the Emergency Telephone System Act (Repealer)
83 Ill. Adm. Code 726............................................................................1021
Requirements for Non-Business Entities with Private Business
Switch Service to Comply with the Emergency Telephone
System Act (Repealer)
83 Ill. Adm. Code 727............................................................................1037
Standards of Service Applicable to Wireless 9-1-1 Emergency
Systems (Repealer)
83 Ill. Adm. Code 728............................................................................1053
Administration of Funds Created by the Wireless Emergency
Telephone Safety Act (Repealer)
83 Ill. Adm. Code 729............................................................................1074
STATE POLICE, DEPARTMENT OF
Consolidation of 9-1-1 Emergency Systems
83 Ill. Adm. Code 1324..........................................................................1099
Standards of Service Applicable to 9-1-1 Emergency Systems
83 Ill. Adm. Code 1325..........................................................................1118
Requirements for Private Business Switch Service to Comply with the
Emergency Telephone System Act
83 Ill. Adm. Code 1326..........................................................................1153
9-1-1 Emergency Systems Consolidation Grants
83 Ill. Adm. Code 1327..........................................................................1169
Standards of Service Applicable to Wireless 9-1-1
Emergency Systems
83 Ill. Adm. Code 1328..........................................................................1181
Administration of the Statewide 9-1-1 Fund
83 Ill. Adm. Code 1329..........................................................................1193
SECOND NOTICES RECEIVED JOINT COMMITTEE ON ADMINISTRATIVE RULES
Second Notices Received…...........................................................................1223
OTHER INFORMATION REQUIRED BY LAW TO BE PUBLISHED
IN THE ILLINOIS REGISTER
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CHILDREN AND FAMILY SERVICES, DEPARTMENT OF
Reports of Child Abuse and Neglect (Agency Response to
JCAR Objection)
89 Ill. Adm. Code 300............................................................................1224
Placement and Visitation Services (Agency Response to
JCAR Objection)
89 Ill. Adm. Code 301............................................................................1225
Services Delivered by the Department of Children and Family Services
(Agency Response to JCAR Objection)
89 Ill. Adm. Code 302............................................................................1226
Access to and Eligibility for Child Welfare Services
(Agency Response to JCAR Objection)
89 Ill. Adm. Code 304............................................................................1227
Adoption Services for Children for Whom the Department of
Children and Family Services is Legally Responsible
(Agency Response to JCAR Objection)
89 Ill. Adm. Code 309............................................................................1228
Permanency Planning (Agency Response to JCAR Objection)
89 Ill. Adm. Code 315............................................................................1229
Administrative Case Reviews and Court Hearings
(Agency Response to JCAR Objection)
89 Ill. Adm. Code 316............................................................................1230
Interstate Placement of Children (Agency Response to JCAR
Objection)
89 Ill. Adm. Code 328............................................................................1231
Service Appeal Process (Agency Response to JCAR Objection)
89 Ill. Adm. Code 337............................................................................1232
Appeal of Foster Family Home License Denials by Relative Caregivers
(Agency Response to JCAR Objection)
89 Ill. Adm. Code 338............................................................................1233
Authorized Child Care Payments (Agency Response to JCAR
Objection)
89 Ill. Adm. Code 359............................................................................1234
Licensing Standards for Foster Family Homes (Agency Response
to JCAR Objection)
89 Ill. Adm. Code 402............................................................................1235
REGULATORY AGENDA AGRICULTURE, DEPARTMENT OF
Farmland Preservation Act
8 Ill. Adm. Code 700..............................................................................1236
CENTRAL MANAGEMENT SERVICES, DEPARTMENT OF
Electronic Commerce Security Act
14 Ill. Adm. Code 105............................................................................1242
CHIEF PROCUREMENT OFFICER FOR HIGHER EDUCATION
Chief Procurement Officer for Public Institutions of Higher Education
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Standard Procurement
44 Ill. Adm. Code 4…............................................................................1246
CONCEALED CARRY LICENSING REVIEW BOARD
Concealed Carry Licensing Review
20 Ill. Adm. Code 2900..........................................................................1247
EMERGENCY MANAGEMENT AGENCY, ILLINOIS
Political Subdivision Emergency Services and Disaster Agencies
29 Ill. Adm. Code 301............................................................................1248
ENVIRONMENTAL PROTECTION AGENCY
Procedures for Issuing Loans from the Water Pollution
Control Program
35 Ill. Adm. Code 365............................................................................1260
HEALTH FACILITIES AND SERVICES REVIEW BOARD
Health Facilities and Services Review Operational Rules
77 Ill. Adm. Code 1130..........................................................................1267
HOUSING DEVELOPMENT AUTHORITY, ILLINOIS
Access to Public Records of the Illinois Housing
Development Authority
2 Ill. Adm. Code 1976............................................................................1270
HUMAN SERVICES, DEPARTMENT OF
Administration
59 Ill. Adm. Code 101............................................................................1273
INSURANCE, DEPARTMENT OF
Acquisition of Control of a Domestic Company
50 Ill. Adm. Code 851............................................................................1316
LABOR RELATIONS BOARD, ILLINOIS
General Procedures
80 Ill. Adm. Code 1200..........................................................................1335
NATURAL RESOURCES, DEPARTMENT OF
Public Use of State Parks and Other Properties of the
Department of Natural Resources
17 Ill. Adm. Code 110............................................................................1340
RACING BOARD, ILLINOIS
Medication
11 Ill. Adm. Code 603............................................................................1362
REVENUE, DEPARTMENT OF
Income Tax
86 Ill. Adm. Code 100............................................................................1376
SECRETARY OF STATE
The Illinois State Library System Act
23 Ill. Adm. Code 3030..........................................................................1403
STATE EMPLOYEES' RETIREMENT SYSTEM OF ILLINOIS
The Administration and Operation of the State Employees'
Retirement System of Illinois
80 Ill. Adm. Code 1540..........................................................................1407
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TEACHERS' RETIREMENT SYSTEM OF THE STATE OF ILLINOIS
The Administration and Operation of the Teachers'
Retirement System
80 Ill. Adm. Code 1650..........................................................................1409
EXECUTIVE ORDERS AND PROCLAMATIONS PROCLAMATIONS
Disaster Proclamation
2015-335…………….............................................................................1410
Disaster Proclamation 2
2015-336…………….............................................................................1411
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INTRODUCTION
The Illinois Register is the official state document for publishing public notice of rulemaking
activity initiated by State governmental agencies. The table of contents is arranged categorically
by rulemaking activity and alphabetically by agency within each category.
Rulemaking activity consists of proposed or adopted new rules; amendments to or repealers of
existing rules; and rules promulgated by emergency or peremptory action. Executive Orders and
Proclamations issued by the Governor; notices of public information required by State Statute; and
activities (meeting agendas; Statements of Objection or Recommendation, etc.) of the Joint
Committee on Administrative Rules (JCAR), a legislative oversight committee which monitors
the rulemaking activities of State Agencies; is also published in the Register.
The Register is a weekly update of the Illinois Administrative Code (a compilation of the rules
adopted by State agencies). The most recent edition of the Code, along with the Register, comprise
the most current accounting of State agencies’ rulemakings.
The Illinois Register is the property of the State of Illinois, granted by the authority of the Illinois
Administrative Procedure Act [5 ILCS 100/1-1, et seq.].
ILLINOIS REGISTER PUBLICATION SCHEDULE FOR 2016
Issue# Rules Due Date Date of Issue
1 December 21, 2015 January 4, 2016
2 December 28, 2015 January 8, 2016
3 January 4, 2016 January 15, 2016
4 January 11, 2016 January 22, 2016
5 January 19, 2016 January 29, 2016
6 January 25, 2016 February 5, 2016
7 February 1, 2016 February 16, 2016
8 February 8, 2016 February 19, 2016
9 February 16, 2016 February 26, 2016
10 February 22, 2016 March 4, 2016
11 February 29, 2016 March 11, 2016
12 March 7, 2016 March 18, 2016
13 March 14, 2016 March 25, 2016
14 March 21, 2016 April 1, 2016
15 March 28, 2016 April 8, 2016
16 April 4, 2016 April 15, 2016
17 April 11, 2016 April 22, 2016
18 April 18, 2016 April 29, 2016
19 April 25, 2016 May 6, 2016
20 May 2, 2016 May 13, 2016
21 May 9, 2016 May 20, 2016
22 May 16, 2016 May 27, 2016
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23 May 23, 2016 June 3, 2016
24 May 31, 2016 June 10, 2016
25 June 6, 2016 June 17, 2016
26 June 13, 2016 June 24, 2016
27 June 20, 2016 July 1, 2016
28 June 27, 2016 July 8, 2016
29 July 5, 2016 July 15, 2016
30 July 11, 2016 July 22, 2016
31 July 18, 2016 July 29, 2016
32 July 25, 2016 August 5, 2016
33 August 1, 2016 August 12, 2016
34 August 8, 2016 August 19, 2016
35 August 15, 2016 August 26, 2016
36 August 22, 2016 September 2, 2016
37 August 29, 2016 September 9, 2016
38 September 6, 2016 September 16, 2016
39 September 12, 2016 September 23, 2016
40 September 19, 2016 September 30, 2016
41 September 26, 2016 October 7, 2016
42 October 3, 2016 October 14, 2016
43 October 11, 2016 October 21, 2016
44 October 17, 2016 October 28, 2016
45 October 24, 2016 November 4, 2016
46 October 31, 2016 November 14, 2016
47 November 7, 2016 November 18, 2016
48 November 14, 2016 November 28, 2016
49 November 21, 2016 December 2, 2016
50 November 28, 2016 December 9, 2016
51 December 5, 2016 December 16, 2016
52 December 12, 2016 December 27, 2016
53 December 19, 2016 December 30, 2016
ILLINOIS REGISTER 438
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ILLINOIS COMMERCE COMMISSION
NOTICE OF PROPOSED AMENDMENTS
1) Heading of the Part: Standards of Service Applicable to 9-1-1 Emergency Systems
2) Code Citation: 83 Ill. Adm. Code 725
3) Section Numbers: Proposed Actions:
725.100 Amendment
725.101 Amendment
725.200 Repealed
725.205 Repealed
725.210 Repealed
725.215 Repealed
725.220 Repealed
725.300 Repealed
725.305 Repealed
725.310 Repealed
725.400 Repealed
725.402 New Section
725.405 Amendment
725.410 Amendment
725.412 New Section
725.415 Repealed
725.500 Repealed
725.505 Repealed
725.510 Repealed
725.515 Repealed
725.520 Amendment
725.525 Repealed
725.600 Repealed
725.APPENDIX A Repealed
4) Statutory Authority: Implementing and authorized by Section 10 of the Emergency
Telephone System Act [50 ILCS 750/10]
5) A Complete Description of the Subjects and Issues Involved: PA 99-6 was signed into
law on June 29, 2015. Many of the provisions in the legislation take effect on January 1,
2016, including those that transfer overall responsibility for the administration of the
Emergency Telephone System Act, 50 ILCS 750, from the Illinois Commerce to the
Department of State Police. Under the new legislation, the Commission will retain
jurisdiction over the telecommunications carriers and 9-1-1 service providers that provide
ILLINOIS REGISTER 439
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ILLINOIS COMMERCE COMMISSION
NOTICE OF PROPOSED AMENDMENTS
9-1-1 network and database services in the state. The proposed amendments that are the
subject of this rulemaking will effectively continue the Commission's oversight of those
functions, and the changes proposed in the amendments will ensure consistency with the
new provisions of the legislation.
6) Published studies or reports, and sources of underlying data, used to compose this
rulemaking: None
7) Will this rulemaking replace any emergency rule currently in effect? Yes
8) Does this rulemaking contain an automatic repeal date? No
9) Does this rulemaking contain incorporations by reference? No
10) Are there any other rulemakings pending on this Part? No; the Agency has adopted
emergency amendments that will remain in effect for 150 days or until the adoption of
the rules proposed in this rulemaking, whichever is earlier.
11) Statement of Statewide Policy Objectives: The proposed rulemaking neither creates nor
expands any State mandate on units of local government, school districts or community
college districts.
12) Time, Place and Manner in which interested persons may comment on this proposed
rulemaking:
Comments should be filed, within 45 days after the date of this issue of the Illinois
Register, in Docket No. 15-0645 with:
Elizabeth Rolando, Chief Clerk
Illinois Commerce Commission
527 East Capitol Avenue
Springfield IL 62701
217/782-7434
13) Initial Regulatory Flexibility Analysis:
A) Types of small businesses, small municipalities and not-for-profit corporations
affected: This rulemaking will affect any subject jurisdictional entities that are
ILLINOIS REGISTER 440
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ILLINOIS COMMERCE COMMISSION
NOTICE OF PROPOSED AMENDMENTS
also small businesses as defined in the Illinois Administrative Procedure Act. This
rulemaking will not affect any small municipalities or not-for-profit corporations.
B) Reporting, bookkeeping or other procedures required for compliance:
Bookkeeping and filing procedures
C) Types of professional skills necessary for compliance: Managerial and
accounting skills
14) Regulatory Agenda on which this rulemaking was summarized: This rulemaking was not
included on either of the two most recent Agendas because: The Commission did not
anticipate the need for this rulemaking at that time.
The full text of the Proposed Amendments is identical with the text of the Emergency
Amendments for this Part and begins in this issue of the Illinois Register on page 961.
ILLINOIS REGISTER 441
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SECRETARY OF STATE
NOTICE OF PROPOSED AMENDMENT
1) Heading of the Part: Regulations Under Illinois Securities Law of 1953
2) Code Citation: 14 Ill. Adm. Code 130
3) Section Number: Proposed Action:
130.493 New Section
4) Statutory Authority: Implementing and authorized by the Illinois Securities Law of 1953
[815 ILCS 5]
5) Complete Description of the Subjects and Issues Involved: The rulemaking sets forth
requirements for crowdfunding issuers.
6) Published studies or reports, and sources of underlying data, used to compose this
rulemaking: These rules are based on the Illinois exemption for crowdfunding which will
take effect January 1, 2016, 815 ILCS 5/4(T). A similar federal rule addressing interstate
crowdfunding is published at 17 CFR Parts 200, 232, 239, 240, 249, and 269). Numerous
other states have enacted crowdfunding legislation and regulation similar to that proposed
in Illinois (see, e.g., Texas, Wisconsin, Indiana, Washington, Massachusetts).
7) Will this rulemaking replace any emergency rule currently in effect? No
8) Does this rulemaking contain an automatic repeal date? No
9) Does this rulemaking contain incorporations by reference? No
10) Are there any other rulemakings pending on this Part? Yes
Section Numbers: Proposed Actions: Illinois Register Citations:
130.874 New Section 40 Ill. Reg. 175, January 4, 2016
130.830 New Section 40 Ill. Reg. 329, January 8, 2016
11) Statement of Statewide Policy Objective: The proposed amendments do not require
expenditures by units of local government.
12) Time, Place and Manner in Which Interested Persons May Comment on this Proposed
Rulemaking: Texts of the proposed amendment are posted on Secretary of State’s web
site, http://www.cyberdriveillinois.com/departments/index/register/home.html, as part of
ILLINOIS REGISTER 442
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SECRETARY OF STATE
NOTICE OF PROPOSED AMENDMENT
the Illinois Register. Interested persons may present their comments concerning this
proposed rulemaking in writing within 45 days after publication of this Notice to:
Tanya Solov, Director
Illinois Secretary of State, Department of Securities
69 West Washington St., Suite 1220
Chicago IL 60602
The Department will consider all written comments it receives during the first notice
period as required by Section 5-40 of the Illinois Administrative Procedure Act [5 ILCS
100/5-40].
13) Initial Regulatory Flexibility Analysis:
A) Types of small businesses, small municipalities and not-for-profit corporations
affected: Crowdfunding Issuers
B) Reporting, bookkeeping or other procedures required for compliance: Filings
with the Secretary of State as follows: Notice as a Crowdfunding Issuer before
sale of securities or solicitation, filing an annual renewal, and filing of
Termination of Funding forms when an offering concludes; disclosures to
investors regarding specifics and status of an offering.
C) Types of professional skills necessary for compliance: No skills over and above
the basic skills required to operate as a crowdfunding issuer.
14) Regulatory Agenda on which this rulemaking was summarized: This rulemaking was not
included on either of the most recent regulatory agendas because the Department did not
anticipate this rulemaking at the time the agendas were filed.
The full text of the Proposed Amendment begins on the next page:
ILLINOIS REGISTER 443
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SECRETARY OF STATE
NOTICE OF PROPOSED AMENDMENT
TITLE 14: COMMERCE
SUBTITLE A: REGULATION OF BUSINESS
CHAPTER I: SECRETARY OF STATE
PART 130
REGULATIONS UNDER ILLINOIS SECURITIES LAW OF 1953
SUBPART A: RULES OF GENERAL APPLICATION
Section
130.100 Business Hours of the Securities Department
130.101 Computation of Time
130.110 Payment of Fees
130.120 Place of Filing
130.130 Date of Filing
130.135 Registration of Securities under Section 5 or 7 of the Act Utilizing the SRD
130.140 Requirements as to Proper Form
130.141 Additional Information
130.142 Additional Exhibits (Repealed)
130.143 Information Unknown or Not Reasonably Available
130.144 Requirements as to Paper, Printing, and Language
130.145 Number of Copies – Signatures
130.190 Provisions for Granting of Variance from Rules
SUBPART B: DEFINITIONS
Section
130.200 Definitions of Terms Used in the Act and the Rules
130.201 Definition of the Term "Investment Contract", as Used in Section 2.1 of the Act
130.202 Definition of the Term "Fractional Undivided Interest", as Used in Section 2.1 of
the Act with Reference to Oil and/or Gas Leases, Rights or Royalties
130.205 Definition of the Term "Issuer" as Used in Section 2.2 of the Act as Applied to
Fractional Interests in Oil, Gas and Other Mineral Leases, Rights or Royalties
130.210 Definition of Act Not Constituting a "Sale" or "Offer" as Used in Section 2.5 or
2.5a of the Act
130.211 Definition of Acts Not Constitution an "Offer" of Securities under Section 5, 6, 7
or 8 of the Act
130.212 Definition of Acts Not Constituting an "Offer" Under Section 2.5a of the Act
(Testing the Waters)
ILLINOIS REGISTER 444
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SECRETARY OF STATE
NOTICE OF PROPOSED AMENDMENT
130.215 Definition of "Commission From an Underwriter or Dealer Not in Excess of the
Usual and Customary Distributors' or Sellers' Commissions", as Used in Section
2.6 of the Act for Certain Transactions
130.216 Definition of "Participates" and "Participation", as Used in Section 2.6 of the Act
in Relation to Certain Transactions
130.220 Definition of "Regularly Engaged in Securities Sales Activities", as Used in
Section 2.9 of the Act
130.221 Exclusion of Certain Persons from the Definition of Investment Adviser in
Section 2.11 of the Act
130.225 Definition of "Investment Fund Shares", as Used in Section 2.15 of the Act in
Relation to Certain Issuers
130.233 Definition of the Phrase "Promissory Note or Draft, Bill of Exchange or Bankers'
Acceptance" as Used in Section 3(L) of the Act
130.234 Definition, For Certain Purposes, of the Terms "Employee Security-Purchase
Plan", "Employee Profit-Sharing Trust or Plan", "Employee Pension Trust or
Plan", as Used in Section 3.N and Section 3.O of the Act (Repealed)
130.235 Definition, For Certain Purposes, of the Terms "Employee Profit-Sharing Trust or
Plan", "Employee Pension Trust or Plan", as Used in Section 3.O of the Act
(Repealed)
130.241 Definition of the Term "Institutional Investor" under Sections 4C and 4D of the
Act
130.242 Definition of the Term "Financial Institution" under Section 4.C of the Act
130.244 Definition of "Issuer Required to File Reports Pursuant to the Provisions of
Section 13 or Section 15(d) of the Federal 1934 Act" with Respect to Certain
Foreign Private Issuers and "Reports Required to be Filed at Regular Intervals
Pursuant to the Provisions of Section 13 or Section 15(d)", as Used in Section
4(F)(1) of the Act
130.245 Definition of the Terms "Balance Sheet" and "Income Statement", as Used in
Section 4.F of the Act
130.246 Definition of the Terms "Residents of this State", "Aggregate Sales Price" and
"Sales Made in Reliance Upon the Exemption" Under Section 4.G of the Act and
"General Advertising or General Solicitation" Under Sections 4.G, 4.H, 4.M and
4.R of the Act
130.247 Definition of the Term "Public" as Used in Section 4(G)(4) of the Act
130.248 Definition of the Terms "Offers for Sale" and "Solicitation of Offers to Buy", as
Used in Section 4.L of the Act
130.250 Definition, For Certain Purposes, of the Terms "Commissions, Remuneration or
Discounts", as Used in Section 4 and Section 5 of the Act
130.251 Definition of the Term "Maximum Aggregate Price", as Used in Section 5 of the
ILLINOIS REGISTER 445
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SECRETARY OF STATE
NOTICE OF PROPOSED AMENDMENT
Act
130.270 Definition of Certain Persons Not Considered to Be Dealers Under Section 2.7 of
the Act
130.280 Definition of the Term "Branch Office" of a Registered Dealer, as Used in Section
8 of the Act
130.281 Definition of the Term "Branch Office" of a Registered Investment Adviser, as
Used in Section 8 of the Act
130.282 Definition, For Certain Purposes, of the Term "Officers", as Used in Section 2.9
and Section 8.B.(6) of the Act
130.285 Definition, for Certain Purposes, of the Terms "Inequitable", "Tend to Work a
Fraud or Deceit", "Inequitable Practice in the Sale of Securities", and "Fraudulent
Business Practices", as Used in Section 8 and Section 11 of the Act
130.291 Definition of the Terms "Fraudulent" and "Work or Tend to Work a Fraud or
Deceit" as Used in Sections 11.E and 12.F of the Act for purposes of the Payment
of Completion Costs in Connection with the Offer or Sale of Securities involving
an Oil, Gas or Other Mineral Lease, Right or Royalty
SUBPART C: FEDERAL COVERED SECURITIES AND TRANSACTIONS
Section
130.293 Issuers of Covered Securities Required to File Notifications and Pay Fees and the
Refusal to File Notifications or Pay Fees
130.370 Automated Quotation System Deemed to Have Substantially Equivalent
Standards for Designation as Required By One or More Exchanges Set Forth in
Section 3(G) of the Act (Repealed)
SUBPART D: EXEMPT TRANSACTIONS
Section
130.420 Uniform Limited Offering Exemption Pursuant to Section 4.D of the Act
130.436 Procedures for Applying for Trading Authorization Pursuant to Section 4(F)(2) of
the Act
130.440 Procedures for Filing Reports of Sale under Section 4.G of the Act
130.441 Calculation of Number of Persons Under Section 4.G or 4.M of the Act
130.442 Report of Sale of Securities pursuant to Section 4.G of the Act
130.490 Procedures for Filing Reports of Sale under Section 4.P of the Act
130.491 Report of Sale of Securities Pursuant to Section 4(P) of the Act
130.492 Exemption from Registration for Certain Canadian Broker-Dealers and Agents
and for Transactions Effected by Certain Canadian Broker-Dealers
ILLINOIS REGISTER 446
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SECRETARY OF STATE
NOTICE OF PROPOSED AMENDMENT
130.493 Crowdfunding Pursuant to Section 4.T of the Act − Issuers
SUBPART E: REGISTRATION OF SECURITIES
Section
130.501 Title of Securities
130.502 Financial Statement Requirements
130.503 Disclaimer of Control
130.505 Formal Requirements as to Consents
130.506 Consents Required in Special Cases
130.507 Application to Dispense with Consent
130.508 Consent to Use of Material Incorporated by Reference
130.510 Procedures for Registration of Securities by Coordination under Section 5.A of
the Act
130.520 Procedures for Registration of Securities by Qualification under Section 5.B of
the Act
130.525 Procedures for Registration of Securities by Qualification under Section 5.B(7) of
the Act, Small Company Offering Registration ("SCOR") on Form U-7
130.530 Renewal of Registration of Securities Under Section 5.E of the Act
130.531 Computation of Fees
130.532 Registration of Additional Securities Pursuant to Section 5(C)(2) of the Act
130.533 Formal Requirements for Amendments Under Section 5 of the Act
130.534 Powers to Amend or Withdraw Registration Statement
130.535 Signatures of Amendments
130.536 Delaying Amendments
130.538 Withdrawal of Registration Statement, Amendment or Exhibit Filed Under the
Federal 1933 Act
130.540 Procedure with Respect to Abandoning Registration Statements, Applications for
Trading Authorization and Post-Effective Amendments
130.550 Additional Fees Under Section 5 of the Act
130.570 Legibility of Prospectuses
130.571 Presentation of Information in Prospectuses
130.572 Summaries or Outlines of Documents
130.573 Preparation of Application for Registration
130.574 Incorporation of Certain Information by Reference
130.575 Form of and Limitation Upon Incorporation by Reference
130.576 Statement Required in Prospectuses
130.577 Prospectuses Supplementing Preliminary, Material Supplied Previously
130.578 Application of Amendments to this Part Governing Contents of Prospectuses
ILLINOIS REGISTER 447
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SECRETARY OF STATE
NOTICE OF PROPOSED AMENDMENT
130.581 Statement as to Stabilizing Required in Prospectuses Filed Under Section 5.B of
the Act
130.582 Contents of Prospectuses When Two or More Registrations Are in Effect Under
Section 5.B of the Act
130.590 Identifying Statements
130.591 Requirements as to Appraisals
130.592 Omission of Substantially Identical Documents
130.593 Incorporation of Exhibits by Reference
SUBPART F: FACE AMOUNT CERTIFICATE CONTRACTS
Section
130.600 Preamble
130.610 Procedures for Registration of Face Amount Certificate Contracts by
Coordination under Section 6.A of the Act
130.630 Renewal of Registration of Face Amount Certificate Contracts Under Section 6.F
of the Act
130.650 Additional Fees Under Section 6 of the Act
SUBPART G: INVESTMENT FUND SHARES
Section
130.700 Preamble
130.701 Title of Investment Fund Shares Registered Under Section 5 or 7 of the Act
130.710 Procedures for Registration of Investment Fund Shares by Coordination under
Section 7.A of the Act
130.715 Amendatory Statement for the Registration of Additional Class or Classes or the
Reporting of a Change in Organization or Operations Pursuant to Section 7(D) of
the Act
130.730 Renewal of Registration of Investment Fund Shares Under Section 7(G) of the
Act
130.750 Additional Fees Under Section 7 of the Act
130.771 Acts Which "Work or Tend to Work a Fraud or Deceit", in Connection with
Offers, Sales or Dispositions of Investment Fund Shares
SUBPART H: REGISTRATION OF DEALERS, SALESPERSONS, INVESTMENT
ADVISERS AND INVESTMENT ADVISER REPRESENTATIVES
Section
ILLINOIS REGISTER 448
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SECRETARY OF STATE
NOTICE OF PROPOSED AMENDMENT
130.805 Exemptions From Registration as an Investment Adviser Under Section 8.A of the
Act
130.806 Acts Not Requiring a Notification Filing of a Federal Covered Investment
Adviser or Registration as an Investment Adviser or Investment Adviser
Representative Under Section 8 of the Act
130.810 Procedures for Registration as a Dealer Under Section 8.B of the Act
130.811 Procedures for Perfecting an Investment Adviser Exemption under Section
2.11(6) of the Act (Repealed)
130.820 Procedures for Renewal and Withdrawal from Registration as a Dealer
130.821 Reporting of Dealer Branch Office Locations and Required Fees
130.822 Examinations Deemed Satisfactory for Purposes of Determining Sufficient
Knowledge of Each Principal Under Section 8.B(9)(a) of the Act Prior to
Registration as a Dealer
130.823 Procedure for Requesting Waiver of Dealer, Salesperson, Investment Adviser,
Investment Adviser Representative, or Principal Examination Requirements
130.824 Financial Statements to be Filed by a Registered Dealer
130.825 Records Required of Dealers and Customer Fees
130.826 Registered Dealer Net Capital Requirements
130.827 Confirmations
130.828 Notice of Materially Adverse Financial Condition Required to Be Filed With the
Securities Department By a Registered Dealer
130.829 Investor Protection Requirement of a Dealer Registered Under Section 8 of the
Act
130.832 Examinations Deemed Satisfactory for Purposes of Determining Sufficient
Knowledge Under Section 8.C(7) of the Act for Registration as a Salesperson
130.836 Hardship Exemption
130.837 Transition to Electronic Filing
130.838 Procedures for Federal Covered Investment Adviser Notification Filing and Fees
Under Section 8.C-5 of the Act
130.839 Procedures for Registration as an Investment Adviser Representative Under
Section 8.D-5 of the Act
130.840 Procedures for Registration as an Investment Adviser Under Section 8.D of the
Act
130.841 Reporting of Investment Adviser Branch Office Locations and Required Fees
130.842 Examinations and Education Programs Deemed Satisfactory for Purposes of
Determining Sufficient Knowledge for Each Principal Under Section 8.D.(9) of
the Act Prior to Registration as an Investment Adviser
130.843 Examination and Education Program Requirements for Registration as an
Investment Adviser Representative Under Section 8.D-5 of the Act
ILLINOIS REGISTER 449
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SECRETARY OF STATE
NOTICE OF PROPOSED AMENDMENT
130.844 Statement of Financial Condition to Be Filed By a Registered Investment Adviser
Which Retains Custody of Client's Cash or Securities or Accepts Pre-Payment of
Fees in Excess of $500.00 Per Client and Six (6) or More Months in Advance and
Interim Financial Statements
130.845 Records Required of Investment Advisers
130.846 Written Disclosure Statements of a Registered Investment Adviser
130.847 Financial and Disciplinary Information That Investment Advisers Must Disclose
to Clients
130.848 Advertisements by Investment Advisers
130.849 Consumer Information Privacy Provisions
130.850 Account Transactions
130.851 Commission, Profit or Other Compensation
130.852 Compensation
130.853 Account Transactions
130.854 Use of the Term "Investment Counsel"
130.855 Use of Senior Certifications and Professional Designations
130.860 Additional Fees Under Section 8 of the Act
130.872 Procedures with Respect to Abandoned Dealer Applications
130.873 Procedures with Respect to Abandoned Investment Adviser Applications
SUBPART J: SERVICE OF PROCESS
Section
130.1001 Service of Process upon the Secretary of State
SUBPART K: PROCEDURES FOR ADMINISTRATIVE HEARINGS
Section
130.1100 Preamble
130.1101 Qualifications and Duties of the Hearing Officer
130.1102 Notice of Hearing
130.1103 Institution of a Contested Case by the Securities Department
130.1104 Requirement to File an Answer
130.1105 Amendment or Withdrawal of the Notice of Hearing
130.1106 Representation
130.1107 Special Appearance (Repealed)
130.1108 Substitution of Parties
130.1109 Failure to Appear
130.1110 Motions
ILLINOIS REGISTER 450
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SECRETARY OF STATE
NOTICE OF PROPOSED AMENDMENT
130.1111 Requirements Relating to Continuances
130.1112 Rules of Evidence
130.1113 Form of Papers
130.1114 Bill of Particulars (Repealed)
130.1115 Discovery
130.1116 Examination of Witnesses
130.1117 Subpoenas
130.1118 Pre-Hearing Conferences
130.1119 Record of a Pre-Hearing Conference
130.1120 Hearings
130.1121 Record of Proceedings
130.1122 Record of Hearing
130.1123 Orders
130.1124 Burden of Proof
130.1125 Stipulations
130.1126 Open Hearings
130.1127 Corrections to the Transcript
130.1128 Imposition of Fines
130.1129 Application for Hearing to Present Newly Discovered Evidence
130.1130 Failure to Comply With Order or Rules
130.1131 Application to Vacate an Order Issued Due to Default
130.1132 Disqualification of a Hearing Officer
SUBPART O: EVIDENTIARY MATTERS AND NON-BINDING STATEMENTS
Section
130.1520 Request for Non-Binding Statements
SUBPART P: SAVINGS PROVISIONS
Section
130.1661 Investors Syndicate of America, Inc.
130.1662 State Bond and Mortgage Company
SUBPART Q: PUBLIC INFORMATION
Section
130.1701 Inspection of Applications
130.1702 Inspection of Dealer, Salesperson and Investment Adviser Records
ILLINOIS REGISTER 451
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SECRETARY OF STATE
NOTICE OF PROPOSED AMENDMENT
130.1703 Non-Public Distribution of Information
130.APPENDIX A Uniform Consent to Service of Process
130.APPENDIX B Uniform Application to Register Securities
130.APPENDIX C Uniform Application for Broker-Dealer Registration
130.APPENDIX D Subordinated Loan Agreement for Equity Capital
AUTHORITY: Implementing and authorized by the Illinois Securities Law of 1953 [815 ILCS
5].
SOURCE: Filed February 23, 1977, effective March 5, 1977; amended at 5 Ill. Reg. 9139,
effective August 27, 1981; amended at 6 Ill. Reg. 6455, effective May 19, 1982; codified at 6 Ill.
Reg. 12674; emergency amendment at 7 Ill. Reg. 17427, effective December 31, 1983, for a
maximum of 150 days; emergency expired May 31, 1984; emergency amendment at 8 Ill. Reg.
1476, effective January 18, 1984, for a maximum of 150 days; emergency expired June 17, 1984;
emergency repealer at 8 Ill. Reg. 3803, effective March 14, 1984, for a maximum of 150 days;
amended at 8 Ill. Reg. 13419, effective July 12, 1984; amended at 8 Ill. Reg. 13840, effective
July 19, 1984; emergency amendment at 8 Ill. Reg. 13889, effective July 20, 1984, for a
maximum of 150 days; emergency expired December 17, 1984; amended at 9 Ill. Reg. 208,
effective December 20, 1984; emergency amendment at 10 Ill. Reg. 393, effective January 1,
1986, for a maximum of 150 days; emergency expired May 30, 1986; amended at 10 Ill. Reg.
10753, effective June 3, 1986; recodified at 10 Ill. Reg. 19554; emergency amendment at 13 Ill.
Reg. 11017, effective July 1, 1989, for a maximum of 150 days; emergency expired November
28, 1989; amended at 14 Ill. Reg. 884, effective December 30, 1989; amended at 14 Ill. Reg.
5188, effective March 26, 1990; emergency amendment at 15 Ill. Reg. 14303, effective
November 1, 1991, for a maximum of 150 days; amended at 16 Ill. Reg. 6000, effective March
27, 1992; amended at 20 Ill. Reg. 14185, effective October 21, 1996; amended at 21 Ill. Reg.
7523, effective May 23, 1997; amended at 21 Ill. Reg. 7770, effective May 23, 1997; amended at
21 Ill. Reg. 8415, effective June 20, 1997; emergency amendment at 21 Ill. Reg. 9828, effective
July 8, 1997, for a maximum of 150 days; amended at 21 Ill. Reg. 15892, effective December 1,
1997; amended at 22 Ill. Reg. 1933, effective January 1, 1998; emergency amendment at 24 Ill.
Reg. 341, effective December 31, 1999, for a maximum of 150 days; amended at 24 Ill. Reg.
7401, effective May 1, 2000; emergency amendment at 25 Ill. Reg. 973, effective January 1,
2001, for a maximum of 150 days; emergency expired May 30, 2001; amended at 25 Ill. Reg.
8817, effective July 6, 2001; amended at 26 Ill. Reg. 14843, effective September 30, 2002;
amended at 27 Ill. Reg. 9490, effective June 9, 2003; emergency amendment at 29 Ill. Reg.
15087, effective September 23, 2005, for a maximum of 150 days; emergency expired February
19, 2006; emergency amendment at 30 Ill. Reg. 13009, effective July 11, 2006, for a maximum
of 150 days; amended at 30 Ill. Reg. 18211, effective October 31, 2006; amended at 33 Ill. Reg.
ILLINOIS REGISTER 452
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SECRETARY OF STATE
NOTICE OF PROPOSED AMENDMENT
12817, effective September 8, 2009; amended at 34 Ill. Reg. 17783, effective November 3, 2010;
emergency amendment at 35 Ill. Reg. 4781, effective March 10, 2011, for a maximum of 150
days; amended at 35 Ill. Reg. 12810, effective July 14, 2011; amended at 36 Ill. Reg. 2852,
effective February 8, 2012; amended at 40 Ill. Reg. 391, effective December 22, 2015; amended
at 40 Ill. Reg. ______, effective ____________.
SUBPART D: EXEMPT TRANSACTIONS
Section 130.493 Crowdfunding Pursuant to Section 4.T of the Act − Issuers
a) Duties of the Issuer
For purposes of this Section, "investor" means a purchaser or prospective
purchaser, and "internet portal" means a registered internet portal required by
Section 4.T of the Act and Section 130.494 of this Part.
1) Filing Requirements and Forms
A) Notice Filing. The issuer shall file a notice on Form CF
(Crowdfunding Issuer Form) with the Secretary of State and
provide to investors and the relevant internet portal a copy of the
Form CF not less than 15 days before the earlier of the first sale of
securities or the use of any general solicitation with respect to the
offering. The Form CF must include the offering statement and all
required information and documentation specified on the form.
B) Annual Renewal. The notice filed pursuant to this subsection
(a)(1) shall be effective for up to 12 months, subject to annual
renewal. The annual renewal shall be filed on Form CF within 30
days before the expiration of the original filing, and shall include a
sales report indicating the number of investors in the offering and
the number of, and value of, securities sold.
C) Termination of Offering. The issuer shall file Form CF-T with the
Secretary of State, and provide a copy to the relevant internet
portal, within 15 days before the termination of the offering.
Termination shall include those offering that are completed for
purposes of this exemption.
ILLINOIS REGISTER 453
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SECRETARY OF STATE
NOTICE OF PROPOSED AMENDMENT
D) Filing Fees. The filing of Form CF, including the filing of a
renewal Form CF and an amended Form CF, shall include the
payment of the filing fee of $100 required by Section 18.1 of the
Act.
2) Escrow Agreements and Accounts
A) The issuer shall enter into an escrow agreement with a qualified
escrowee, providing that, at a minimum:
i) all funds to be received in connection with the proposed
offering shall be delivered to, and held by, the qualified
escrowee pursuant to the terms of the escrow agreement;
and
ii) the issuer shall not have access to the escrow funds, or any
portion of those funds, until the aggregate funds received
by the qualified escrowee in connection with the proposed
offering equal or exceed the minimum amount of securities
to be sold as established by the issuer.
B) Investors shall receive a return of the entirety of their investment
funds if the target offering amount is not raised by the deadline
date established in the offering materials.
3) Required Disclosures. In additional to all other material disclosures that
are required by law or rules, the issuer must disclose the following to
investors:
A) Offering Maximum and Minimum Amounts. The issuer shall
establish a maximum amount and a minimum amount of securities
to be sold and a deadline date for selling the designated minimum
amount of securities. This information shall be conspicuously
disclosed in any agreement evidencing the investor's subscription
agreement to purchase the securities. The minimum amount
designated for sale shall be no less than 50% of the maximum
amount.
B) Cancellation Rights. An investor may cancel, without penalty, an
investment commitment until 48 hours prior to the deadline
ILLINOIS REGISTER 454
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SECRETARY OF STATE
NOTICE OF PROPOSED AMENDMENT
identified in the issuer's offering materials. The issuer shall
conspicuously disclose in the investor's subscription agreement this
right of cancellation. Upon receipt of the notice of cancellation, the
intermediary shall direct the refund of investor funds within 5
business days.
4) Early Completion of Offering. If an issuer reaches the target offering
amount prior to the deadline identified in its offering materials, the issuer
may close the offering on a date earlier than the deadline identified in its
offering materials.
5) Material Changes of the Offering. If there is a material change to the terms
of the offering or to the information provided by the issuer, the issuer must
provide notice of the material changes to the Secretary of State, the
relevant internet portal and the investors (communication to investors may
occur through the internet portal).
6) Return of Funds if Offering is Not Completed. If an issuer does not
complete an offering, the internet portal must, within 5 business days:
A) Notify each investor of the cancellation, disclosing the reason for
the cancellation and the amount of funds that the investor is
expected to receive;
B) Direct the refund of investor funds;
C) Prevent investors from making investment commitments with
respect to that offering on the issuer's internet platform.
7) Investor Qualification
A) Each time before accepting any investment commitment (including
any additional investment commitment from the same person), an
issuer must have a reasonable basis for believing that the investor
satisfies the requirements of Section 4.T of the Act and this
Section.
B) The issuer may rely on an investor's representations regarding
compliance with the investment limitation requirements
ILLINOIS REGISTER 455
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SECRETARY OF STATE
NOTICE OF PROPOSED AMENDMENT
concerning the investor's annual income and net worth, and the
amount of the investor's other investments made pursuant to
Section 4.T of the Act, unless the issuer has reason to question the
reliability of the representation. The issuer may obtain the required
investor affirmations through the internet portal.
C) The issuer may establish Illinois residency by relying on:
i) a valid Illinois driver's license or official personal
identification card issued by the Illinois Secretary of State;
ii) a current Illinois voter registration; or
iii) general property tax records showing the investor owns and
occupies property in Illinois as his or her principal
residence.
b) Disqualifications. No exemption under Section 4.T of the Act and this Section
shall be available for a sale of securities if the issuer, any predecessor of the
issuer, any affiliated issuer, any director, officer, general partner or managing
member of the issuer, any beneficial owner of 20% or more of the issuer's
outstanding voting equity securities, calculated on the basis of voting power, any
promoter connected with the issuer in any capacity at the time of the sale, any
person that has been or will be paid (directly or indirectly) remuneration for
solicitation of purchasers in connection with the sales of securities, or any general
partner, director, officer or managing member of any such solicitor:
1) Is or has been subject to any of the statutory disqualification provisions set
forth in Section 8.E(1) of the Illinois Securities Act; or
2) Has filed a registration statement within the last 5 years that is the subject
of a currently effective registration stop order entered by any state
securities administrator or the U.S. Securities and Exchange Commission.
(Source: Added at 40 Ill. Reg. ______, effective ____________)
ILLINOIS REGISTER 456
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CHIEF PROCUREMENT OFFICER FOR
PUBLIC INSTITUTIONS OF HIGHER EDUCATION
NOTICE OF ADOPTED AMENDMENTS
1) Heading of the Part: Chief Procurement Officer for Public Institutions of Higher
Education Standard Procurement Rules
2) Code Citation: 44 Ill. Adm. Code 4
3) Section Numbers: Adopted Actions:
4.3 Amendment
4.5 Amendment
4.8 Amendment
4.10 Amendment
4.13 Repealed
4.14 Repealed
4.15 Amendment
4.1005 Amendment
4.1060 Amendment
4.1501 Amendment
4.1510 Amendment
4.1515 Amendment
4.1525 Amendment
4.1535 New Section
4.1550 Amendment
4.1560 Amendment
4.1580 Amendment
4.1595 Amendment
4.2005 Amendment
4.2010 Amendment
4.2012 Amendment
4.2013 Amendment
4.2015 Amendment
4.2020 Amendment
4.2025 Amendment
4.2030 Amendment
4.2035 Amendment
4.2036 Amendment
4.2038 Amendment
4.2039 Amendment
4.2040 Amendment
ILLINOIS REGISTER 457
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CHIEF PROCUREMENT OFFICER FOR
PUBLIC INSTITUTIONS OF HIGHER EDUCATION
NOTICE OF ADOPTED AMENDMENTS
4.2043 Amendment
4.2044 Amendment
4.2045 Amendment
4.2046 Amendment
4.2047 Amendment
4.2050 Amendment
4.2055 Amendment
4.2060 Amendment
4.2065 Amendment
4.2067 New Section
4.2080 Amendment
4.2084 Amendment
4.2086 Amendment
4.3005 Amendment
4.4015 Amendment
4.4020 Amendment
4.4025 Amendment
4.4505 Amendment
4.4515 Amendment
4.4520 Amendment
4.4525 Amendment
4.4526 Amendment
4.4530 Amendment
4.4535 Amendment
4.4540 Amendment
4.4545 Amendment
4.4557 Amendment
4.4570 Amendment
4.4575 Amendment
4.4579 Repealed
4.5002 Amendment
4.5005 Amendment
4.5009 Amendment
4.5010 Amendment
4.5011 Amendment
4.5012 Amendment
4.5013 Amendment
4.5014 Amendment
ILLINOIS REGISTER 458
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CHIEF PROCUREMENT OFFICER FOR
PUBLIC INSTITUTIONS OF HIGHER EDUCATION
NOTICE OF ADOPTED AMENDMENTS
4.5020 Amendment
4.5021 Amendment
4.5030 Amendment
4.5035 Amendment
4.5036 Amendment
4.5037 Amendment
4.5038 Amendment
4.5039 Amendment
4.5325 Amendment
4.5550 Amendment
4.5560 Amendment
4.5620 Amendment
4.5730 Amendment
4.5740 Amendment
4.7015 Amendment
4.7030 Amendment
4) Statutory Authority: The Illinois Procurement Code [30 ILCS 500]
5) Effective Date of Rules: January 15, 2016
6) Does this rulemaking contain an automatic repeal date? No
7) Does this rulemaking contain incorporations by reference? No
8) A copy of the adopted rules, including any material incorporated by reference, is on file
in the Agency's principal office and is available for public inspection.
9) Notice of Proposal published in the Illinois Register: 39 Ill. Reg. 8481; June 26, 2015
10) Has JCAR issued a Statement of Objection to this rulemaking? No
11) Differences between Proposal and Final Version: Technical corrections and amendments
proposed by JCAR were made and typographical errors were corrected. Sections 4.13
and 4.14 were repealed. Section 4.1080 was withdrawn. In response to university and
Procurement Policy Board comments, minor revisions were made to multiple sections to
clarify definitions and to clarify the roles of the CPO and the universities. Sections
dealing with change orders were revised to be consistent throughout. Section 4.2036 was
ILLINOIS REGISTER 459
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CHIEF PROCUREMENT OFFICER FOR
PUBLIC INSTITUTIONS OF HIGHER EDUCATION
NOTICE OF ADOPTED AMENDMENTS
revised to clarify the process for making a multiple award and use of a pre-qualified pool
of vendors and procurements for grant-funded research. Section 4.2067 was revised to
clarify when a change order must be published. Section 4.2080 was revised to clarify
what information must be available at the time an award is published. Section 4.5030 (c)
was withdrawn.
12) Have all the changes agreed upon by the Agency and JCAR been made as indicated in the
agreements issued by JCAR? Yes
13) Will this rulemaking replace an emergency rule currently in effect? No
14) Are there any rulemakings pending on this Part? No
15) Summary and Purpose of Rulemaking: The amendments implement the changes of PA
96-795 and PA 98-1076 for the Chief Procurement Office for Public Institutions of
Higher Education, further defining terms, the structure and procurement authority
oversight of the CPO-HE and SPOs, and providing direction to universities on
procurement matters. The amendments allow for CPO-HE access to records to determine
if a contract or expenditure is subject to the provisions of the Procurement Code and
provide for exemption from the Illinois Procurement Code for certain contracts entered
into by the University of Illinois and Southern Illinois University for certain supplies and
services. The amendments increase from $25,000 to $50,000 the disclosure requirements
of subcontractors and clarify vendors' responsibilities when there is a change of
subcontractor. The amendments: provide direction on publication requirements for
renegotiated contracts and change orders; provide instruction on how to receive bids and
offers in order to maintain confidentiality; specify the requirements for evaluation
committees; specify what discussion may occur with apparent awardees prior to notice of
award; provide guidance on the use of contracts with qualified not-for-profit agencies for
person with severe disabilities; and allow for the use of electronic signatures by vendors.
The amendments: clarify notice and hearing requirements for sole source contracts and
for alleged conflict of interests; clarify an SPO's obligation to approve (and not sign)
contracts by universities; provide for the CPO-HE to be responsible for and publish the
Illinois Procurement Bulletin/Chief Procurement Officer for Institutions of Public Higher
Education; provide guidance on the establishment and use of a vendor portal; implement
publication requirements for awards to other than the low bidder; and clarify that
procurement files shall not include trade secrets or other sensitive, confidential or
proprietary information. The amendments: define criteria for contracts with Illinois small
businesses; provide for the CPO-HE to verify a business entity is in compliance with
ILLINOIS REGISTER 460
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CHIEF PROCUREMENT OFFICER FOR
PUBLIC INSTITUTIONS OF HIGHER EDUCATION
NOTICE OF ADOPTED AMENDMENTS
requirements to register with the State Board of Elections; and allow opportunity for
contractors to terminate subcontractors who provide false certifications. The
amendments: clarify when vendors may be prohibited bidders and contractors; specify
when state employees are required to report conversations with potential vendors; and
provide due process when suspected prohibited political contributions are made by
vendors.
16) Information and questions regarding these adopted rules shall be directed to:
Shirley Webb
Deputy Chief Procurement Officer
Chief Procurement Office for Public Institutions of Higher Education
401 S. Spring Street
Room 522 Stratton Office Building
Springfield IL 62706
217/558-2247
The full text of the Adopted Amendments begins on the next page:
ILLINOIS REGISTER 461
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CHIEF PROCUREMENT OFFICER FOR
PUBLIC INSTITUTIONS OF HIGHER EDUCATION
NOTICE OF ADOPTED AMENDMENTS
TITLE 44: GOVERNMENT CONTRACTS, GRANTMAKING, PROCUREMENT
AND PROPERTY MANAGEMENT
SUBTITLE A: PROCUREMENT AND CONTRACT PROVISIONS
CHAPTER II: CHIEF PROCUREMENT OFFICER FOR
PUBLIC INSTITUTIONS OF HIGHER EDUCATION
PART 4
CHIEF PROCUREMENT OFFICER FOR
PUBLIC INSTITUTIONS OF HIGHER EDUCATION STANDARD PROCUREMENT
SUBPART A: GENERAL
Section
4.1 Title
4.3 Authority
4.5 Policy
4.8 Implementation of This Part
4.10 Application
4.13 Additional Exemptions Applicable to Higher Education (Repealed)
4.14 Certification, Hearing and Registration Waivers Applicable to Higher Education
(Repealed)
4.15 Definition of Terms Used in This Part
4.25 Property Rights
SUBPART B: PROCUREMENT RULES, POLICIES AND PROCEDURES
Section
4.525 Rules
4.530 Policies and Procedures
SUBPART C: PROCUREMENT AUTHORITY
Section
4.1005 Procurement Authority
4.1010 Appointment of State Purchasing Officers (Repealed)
4.1011 Procurement Authority of the CPO (Repealed)
4.1030 Other Procurement Authority of the Universities (Repealed)
4.1060 Delegation
ILLINOIS REGISTER 462
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CHIEF PROCUREMENT OFFICER FOR
PUBLIC INSTITUTIONS OF HIGHER EDUCATION
NOTICE OF ADOPTED AMENDMENTS
4.1080 Illinois Mathematics and Science Academy (Repealed)
SUBPART D: PUBLICIZING PROCUREMENT ACTIONS
Section
4.1501 Illinois Procurement Bulletin − Higher Education
4.1510 Publication of Higher Education Bulletin
4.1515 Registration
4.1525 Bulletin Content
4.1535 Vendor Portal
4.1545 Supplemental Notice (Repealed)
4.1550 Error in Notice
4.1560 Alternate and Supplemental Notice
4.1580 Direct Solicitation
4.1585 Notice Time
4.1595 Availability of Solicitation Document
SUBPART E: SOURCE SELECTION AND CONTRACT FORMATION
Section
4.2005 General Provisions
4.2010 Competitive Sealed Bidding
4.2012 Multi-Step Sealed Bidding
4.2013 Reverse Auctions
4.2015 Competitive Sealed Proposals
4.2020 Small Purchases
4.2025 Sole Source and Sole Economically Feasible Source Procurement
4.2030 Emergency Procurements
4.2035 Competitive Selection Procedures for Professional and Artistic Services
4.2036 Other Methods of Source Selection
4.2037 Tie Bids and Proposals
4.2038 Modification or Withdrawal of Bids or Proposals
4.2039 Mistakes
4.2040 Cancellation of Solicitations; Rejection of Bids or Proposals
SUBPART F: SUPPLIERS, PREQUALIFICATION AND RESPONSIBILITY
Section
ILLINOIS REGISTER 463
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CHIEF PROCUREMENT OFFICER FOR
PUBLIC INSTITUTIONS OF HIGHER EDUCATION
NOTICE OF ADOPTED AMENDMENTS
4.2043 Suppliers
4.2044 Vendor List
4.2045 Vendor Prequalification
4.2046 Responsibility
SUBPART G: BID, PROPOSAL AND PERFORMANCE SECURITY
Section
4.2047 Security Requirements
SUBPART H: SPECIFICATIONS AND SAMPLES
Section
4.2050 Specifications and Samples
SUBPART I: CONTRACTS
Section
4.2055 Types of Contracts
4.2060 Duration of Contracts − General
4.2065 Cancellation of Contracts
4.2067 Contract Amendments and Change Orders
SUBPART J: PROCUREMENT FILES
Section
4.2080 Public Procurement File
4.2084 Record Retention
4.2086 Filing with the Comptroller
SUBPART K: WORKING CONDITIONS
Section
4.2560 Prevailing Wage
4.2570 Equal Employment Opportunity; Affirmative Action
SUBPART L: CONSTRUCTION AND
CONSTRUCTION RELATED PROFESSIONAL SERVICES
ILLINOIS REGISTER 464
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CHIEF PROCUREMENT OFFICER FOR
PUBLIC INSTITUTIONS OF HIGHER EDUCATION
NOTICE OF ADOPTED AMENDMENTS
Section
4.3005 Construction and Construction Related Professional Services
SUBPART M: REAL PROPERTY LEASES AND CAPITAL IMPROVEMENT LEASES
Section
4.4005 Real Property Leases and Capital Improvement Leases
4.4010 Authority
4.4015 Method of Source Selection
4.4020 RFI-RPL ProcessRequest for Information-Real Property and Capital Improvement
Leases
4.4025 Lease Requirements
4.4030 Purchase Option
4.4035 Rent Without Occupancy
4.4040 Local Site Preferences
4.4042 Historic Area Preference
4.4044 Emergency Lease Procurement
SUBPART N: PREFERENCES
Section
4.4505 Procurement Preferences
4.4510 Resident Bidder Preference
4.4515 Soybean Oil-Based Ink
4.4520 Recycled Materials
4.4525 Recyclable Paper
4.4526 Environmentally Preferable Procurement
4.4530 Correctional Industries
4.4535 Qualified Not-for-Profit Agencies for Persons with Severe Disabilities
4.4540 Gas Mileage, and Flex-Fuel, Biodiesel and Hybrid Requirements
4.4545 Small Business
4.4550 Illinois Agricultural Products
4.4555 Corn-Based PlasticsPlastic Products
4.4557 Disabled Veterans and Service-Disabled Veterans
4.4570 Contracting with Businesses Owned and Controlled by Minorities, Females and
Persons with Disabilities
4.4575 Domestic Products
ILLINOIS REGISTER 465
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CHIEF PROCUREMENT OFFICER FOR
PUBLIC INSTITUTIONS OF HIGHER EDUCATION
NOTICE OF ADOPTED AMENDMENTS
4.4578 Bio-Based Products
4.4579 Notice of Preferences (Repealed)
SUBPART O: ETHICS
Section
4.5002 Continuing Disclosures; False Certification
4.5005 Bribery
4.5009 Felons
4.5010 Prohibited Bidders and Contractors
4.5011 Debt Delinquency
4.5012 Collection and Remittance of Illinois Use Tax
4.5013 Conflicts of Interest Prohibited by the Code
4.5014 Environmental Protection Act Violations
4.5015 Lead Poisoning Prevention Act Violations
4.5016 Negotiations for Future Employment
4.5020 Exemptions
4.5021 Bond Issuances
4.5023 Other Conflicts of Interest
4.5030 Revolving Door Prohibition
4.5035 Disclosure of Financial Interests and Potential Conflicts of Interest
4.5036 Disclosure of Business in Iran
4.5037 Vendor Registration, Certification and Prohibition on Political Contributions
4.5038 Lobbying Restrictions
4.5039 Procurement Communication Reporting Requirement
4.5055 Supply Inventory
SUBPART P: CONCESSIONS
Section
4.5325 Concessions
SUBPART Q: COOPERATIVE PURCHASING
Section
4.5400 General
4.5420 Governmental Joint Purchasing Act Contracts
4.5440 Other Joint Purchasing
ILLINOIS REGISTER 466
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CHIEF PROCUREMENT OFFICER FOR
PUBLIC INSTITUTIONS OF HIGHER EDUCATION
NOTICE OF ADOPTED AMENDMENTS
4.5460 No Agency Relationship
SUBPART R: PROTESTS
Section
4.5520 Suspension (Repealed)
4.5530 Cancellation of Contracts (Repealed)
4.5540 Violation of Statute or Rule (Repealed)
4.5550 Protests
SUBPART S: SUSPENSION AND DEBARMENT
Section
4.5560 Suspension and Debarment
SUBPART T: VIOLATION OF STATUTE OR RULE
Section
4.5620 Violation of Statute or Rule
SUBPART U: HEARING PROCEDURES
Section
4.5700 General
4.5710 Informal Process
4.5720 Hearing Officers
4.5730 Notice of Hearing
4.5740 Written Comments and Oral Testimony
4.6500 General (Repealed)
4.6510 No Agency Relationship (Repealed)
SUBPART V: MISCELLANEOUS PROVISIONS OF GENERAL APPLICABILITY
Section
4.7000 Severability
4.7005 Supply Inventory (Repealed)
4.7010 University Furnished Property
4.7015 Inspections
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4.7020 Taxes, Licenses, Assessments and Royalties
4.7030 No Waiver of Sovereign Immunity
AUTHORITY: Implementing and authorized by Section 5-25 of the Illinois Procurement Code
[30 ILCS 500].
SOURCE: Adopted by emergency rulemaking at 22 Ill. Reg. 13905, effective July 1, 1998, for a
maximum of 150 days; amended by emergency rulemaking at 22 Ill. Reg. 19096, effective
October 1, 1998, for a period to expire November 27, 1998; adopted at 22 Ill. Reg. 20964,
effective November 20, 1998; amended at 32 Ill. Reg. 16388, effective September 24, 2008;
recodified, pursuant to PA 96-795, from 44 Ill. Adm. Code 526 to 44 Ill. Adm. Code 4 at 35 Ill.
Reg. 10151; amended at 36 Ill. Reg. 10951, effective August 6, 2012; recodified Title heading at
39 Ill. Adm. Code 5903; amended at 40 Ill. Reg. 456, effective January 15, 2016.
SUBPART A: GENERAL
Section 4.3 Authority
a) This Part is promulgated by the Chief Procurement Officer for Public Institutions
of Higher Education (CPO-HE) in accordance with the provisions of the Illinois
Procurement Code (Code) [30 ILCS 500]. This Part may be amended in
accordance with the Code and the Illinois Administrative Procedure Act [5 ILCS
100/5].
b) Section 10-20 of the Code creates four Chief Procurement Officers: one for
procurements for construction and construction-related services committed by law
to the jurisdiction or responsibility of the Capital Development Board; one for
procurements for all construction, construction-related services, operation of any
facility, and the provision of any construction or construction-related services or
activity committed by law to the jurisdiction or responsibility of the Illinois
Department of Transportation; one for all procurement actions made by a public
institution of higher education; and one for all other procurements. For purposes
of this Part, any reference to Chief Procurement Officer or CPO-HE means the
Independent Chief Procurement Officer for Public Institutions of Higher
Education unless the context indicates otherwise. This Part applies to all
procurement actions and procurement rulemaking under the jurisdiction of the
CPO-HE.
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(Source: Amended at 40 Ill. Reg. 456, effective January 15, 2016)
Section 4.5 Policy
The principles of competitive bidding and economical procurement practices shall apply to all
purchases and contracts by or for the universitiesUniversities, except as otherwise provided by
law, this Part and other applicable rules. It is the policy of the CPO-HE that all activities of the
State Purchasing Officers (SPOs) and other designees related to the procurement process
maximize the value of the expenditure of public funds in procuring contracts, and that those
appointed and designated act in a manner that maintains public trust in the integrity of the
process.
(Source: Amended at 40 Ill. Reg. 456, effective January 15, 2016)
Section 4.8 Implementation of This Part
a) This Part establishes rules necessary and appropriate to implement the
procurement authorityauthorities granted by the Code to the CPO-HE relating to
the procurement of supplies, including inventory level, services, real estate and
capital improvement leases, and, as applicable, construction and concessions, and
necessary rulemaking under the authority of the Code.
b) Section 10-20 of the Code creates four Chief Procurement Officers: one for
procurements for construction and construction-related services committed by law
to the jurisdiction or responsibility of the Capital Development Board; one for
procurements for all construction, construction-related services, operation of any
facility, and the provision of any construction or construction-related services or
activity committed by law to the jurisdiction or responsibility of the Illinois
Department of Transportation; one for all procurement actions made by a public
institution of higher education; and one for all other procurements. For purposes
of this Part, any reference to Chief Procurement Officer or CPO-HE means the
Independent Chief Procurement Officer for Public Institutions of Higher
Education unless the context indicates otherwise. This Part applies to all
procurement actions and procurement rulemaking under the jurisdiction of the
CPO-HE and any State Purchasing Officer (SPO) appointed by the CPO-HE.
bc) This Part is intended to make procurement actions of the public universities
uniform and consistent among and within the universities under the jurisdiction of
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the CPO-HE in order to facilitate participation in procurements, encourage
competition, and ensure that procurements are conducted in a fair and open
manner. Implementation by and within the universities shall be consistent with
this Part. Operational interpretations are to be made in a flexible manner designed
to secure the universities' needs and protect the interests of the universities and the
State of Illinois.
(Source: Amended at 40 Ill. Reg. 456, effective January 15, 2016)
Section 4.10 Application
The Code and this Part apply to procurements for which bidders, offerors, potential contractors,
contractors or vendors were first solicited on or after July 1, 1998. [30 ILCS 500/1-10(a)] For
purposes of this Part, the terms bidder, offeror, potential contractor, contractor or vendor may be
used interchangeably unless the context indicates otherwise. The Code and this Part do not apply
to:
a) contracts between the State and its political subdivisions or other governments, or
between State governmental bodies, except as specifically provided in the Code.
(For purposes of this subsection (a), "governmental bodies" includes the State
universities and their governing boards, community colleges and their governing
boards and school districts. This provision applies to contracts between
governmental entities; it does not apply to State universities use of contracts
established by other governmental entities);
b) grants (except for the filing requirements of Section 20-80 of the Code);
c) purchase of care;
d) hiring of an individual as employee and not as an independent contractor,
whether pursuant to an employment code or policy or by contract directly with
that individual;
e) collective bargaining contracts;
f) purchase of real estate, except that notice of this type of contract with a value of
more than $25,000 must be published in the Procurement Bulletin within 10
calendar7 days after the deed is recorded in the county of jurisdiction (This
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applies to purchases whether outright or by means of an installment purchase.
The exercise of an option to purchase in a real estate lease is exempt, but the
underlying lease is not exempt from this Part). The notice shall identify the real
estate purchased, the names of all parties to the contract, the value of the
contract, and the effective date of the contract;
g) contracts necessary to prepare for anticipated litigation, enforcement actions, or
investigations, provided that the chief legal counsel to the Governor shall give his
or her prior approval when the procuring agency is one subject to the jurisdiction
of the Governor, and provided that the chief legal counsel of any other procuring
entity subject to the Code shall give his or her prior approval when the procuring
entity is not one subject to the jurisdiction of the Governor. Anticipated litigation
is that which a university may prosecute or defend before a court or
administrative body and actions necessary to prepare for and conduct the effective
legal prosecution or defense of litigation, including, but not limited to, the
retention of counsel, investigators, expert witnesses and court reporters. This
Section is applicable to equipment or services necessary in the furtherance of
covert activities lawfully conducted by a university;.
h) Contracts for services to Northern Illinois University by a person, acting as an
independent contractor, who is qualified by education, experience, and technical
ability and is selected by negotiation for the purpose of providing non-credit
educational service activities or products by means of specialized programs
offered by the university;
i) Procurement expenditures by the Illinois Conservation Foundation when only
private funds are used;
j) Procurement expenditures by the Illinois Health Information Exchange Authority
involving private funds from the Health Information Exchange Fund. "Private
funds" means gifts, donations, and private grants; [30 ILCS 500/1-10(b)]
k) Public-Private agreements entered into according to the procurement
requirements of Section 20 of the Public-Private Partnerships for Transportation
Act and design-build agreements entered into according to the procurement
requirements of Section 25 of the Public-Private Partnerships for Transportation
Act;
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l) Contracts for legal, financial, and other professional and artistic services entered
into on or before December 31, 2018 by the Illinois Finance Authority in which
the State of Illinois is not obligated. Such contracts shall be awarded through a
competitive process authorized by the Board of the Illinois Finance Authority and
are subject to Sections 5-30, 20-160, 50-13, 50-20, 50-35, and 50-37 of the Code,
as well as the final approval by the Board of the Illinois Finance Authority of the
terms of the contract; and
m) Except for that part of a record subject to attorney-client privilege, the CPO-HE
may access any records necessary to review whether a contract, purchase or
other expenditure is exempt under Section 1-10 of the Code. [30 ILCS 500/1-
10(i)].
(Source: Amended at 40 Ill. Reg. 456, effective January 15, 2016)
Section 4.13 Additional Exemptions Applicable to Higher Education (Repealed)
a) These additional exemptions apply to universities regardless of the source of the
funds with which contracts are paid, except as provided in this Section.
b) Except as provided in this Section, the Code shall not apply to procurements
made by or on behalf of universities for any of the following:
1) Memberships in professional, academic, or athletic organizations on
behalf of a university, an employee of a university, or a student at a
university.
2) Procurement expenditures for events or activities paid for exclusively by
revenues generated by the event or activity, gifts or donations for the event
or activity, private grants, or any combination thereof.
3) Procurement expenditures for events or activities for which the use of
specific vendors is mandated or identified by the sponsor of the event or
activity, provided that the sponsor is providing a majority of the funding
for the event or activity.
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4) Procurement expenditures necessary to provide artistic or musical
services, performances, or productions held at a venue operated by a
university.
5) Procurement expenditures for periodicals and books, including online
periodicals and books procured for use by a university library or
academic department, except for expenditures related to procuring
textbooks for student use or materials for resale or rental.
c) Notice of each contract entered into by a university that is related to the
procurement of goods and services identified in subsection (b) shall be published
in the Bulletin within 14 days after contract execution. The CPO-HE shall
prescribe the form and content of the notice.
d) Each university shall provide the CPO-HE, on a monthly basis, in the form and
content prescribed by the CPO-HE, a report of contracts that are related to the
procurement of goods and services identified in subsection (b). The CPO-HE
may structure the required Bulletin publication to serve as the mandatory report.
At a minimum, this report shall include the name of the contractor, a description
of the supply or service provided, the total amount of the contract, the term of the
contract, and the exception to the Code utilized. A copy of any or all of these
contracts shall be made available to the CPO-HE immediately upon request.
e) The CPO-HE shall submit a report to the Governor and General Assembly no
later than November 1 of each year that shall include, at a minimum, an annual
summary of the monthly information reported to the CPO-HE. [30 ILCS 500/1-
13]
(Source: Repealed at 40 Ill. Reg. 456, effective January 15, 2016)
Section 4.14 Certification, Hearing and Registration Waivers Applicable to Higher
Education (Repealed)
a) Procurements made by or on behalf of universities for any of the following shall
be made in accordance with the requirements of the Code to the extent practical as
provided in this subsection:1)Contracts with a foreign entity necessary for
research or educational activities, provided that the foreign entity either does not
maintain an office in the United States or is the sole source of the service or
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product.2)Procurements of FDA-regulated goods, products, and services
necessary for the delivery of care and treatment at medical, dental, or veterinary
teaching facilities utilized by the University of Illinois or Southern Illinois
University.3)Contracts for programming and broadcast license rights for
university-operated radio and television stations.4)Procurements required for
fulfillment of a grant.b) Upon the written request of a university, the CPO-HE
may waive registration, certification, and sole source and emergency extension
hearing requirements of the Code if, based on the item to be procured or the
terms of a grant, compliance is impractical.
1) The university shall provide the CPO-HE with specific reasons for the
waiver, including the necessity of contracting with a particular vendor,
and shall certify and provide documentation that an effort was made in
good faith to comply with the provisions of the Code.
2) The CPO-HE shall provide written justification for any waivers. Notice of
each waiver made under this subsection (b) shall be published in the
Bulletin within 14 days after contract execution. The CPO-HE shall
prescribe the form and content of the notice.
3) By November 1 of each year, the CPO-HE shall file a report with the
General Assembly identifying each contract approved with waivers and
providing the justification given for any waivers for each of those
contracts.
c) Notwithstanding this Section, a waiver of the registration requirements of Section
20-160 does not permit a business entity and any affiliated entities or affiliated
persons to make campaign contributions if otherwise prohibited by Section 50-37.
The total amount of contracts awarded in accordance with this Section shall be
included in determining the aggregate amount of contracts or pending bids of a
business entity and any affiliated entities or affiliated persons.
d) Notwithstanding Section 50-10.5(e) of the Code, the CPO-HE, with the approval
of the Executive Ethics Commission, may permit a university to accept a bid or
enter into a contract with a business that assisted the university in determining
whether there is a need for a contract or assisted in reviewing, drafting, or
preparing documents related