illinois...telephone safety act (repealer) ... health facilities and services review board health...

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

i

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


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


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

iii

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


89 Ill. Adm. Code 304............................................................................1227

Adoption Services for Children for Whom the Department of

Children and Family Services is Legally Responsible


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


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


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

iv

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

v

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

vi

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



6 January 25, 2016 February 5, 2016

7 February 1, 2016 February 16, 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

vii

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



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



ILLINOIS REGISTER 438

16

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


16



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


16



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.


16

SECRETARY OF STATE

NOTICE OF PROPOSED AMENDMENT

1) Heading of the Part: Regulations Under Illinois Securities Law of 1953


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



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


16

SECRETARY OF STATE


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

[email protected]

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:


16

SECRETARY OF STATE


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)


16

SECRETARY OF STATE


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


16

SECRETARY OF STATE


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


16

SECRETARY OF STATE


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


16

SECRETARY OF STATE


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


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


130.771 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


16

SECRETARY OF STATE


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


16

SECRETARY OF STATE


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


130.872 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


16

SECRETARY OF STATE


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


16

SECRETARY OF STATE


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.


16

SECRETARY OF STATE


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.


16

SECRETARY OF STATE


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


16

SECRETARY OF STATE


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


16

SECRETARY OF STATE


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 ____________)


16

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


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


16




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


16




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



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


16




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


16




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

[email protected]

The full text of the Adopted Amendments begins on the next page:


16




TITLE 44: GOVERNMENT CONTRACTS, GRANTMAKING, PROCUREMENT

AND PROPERTY MANAGEMENT

SUBTITLE A: PROCUREMENT AND CONTRACT PROVISIONS

CHAPTER II: CHIEF PROCUREMENT OFFICER FOR


PART 4


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


16




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


16




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


16




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


16




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


16




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


16




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.


16




(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.


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


16




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.


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


16




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;


16




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)].


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.


16




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


16




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