CTY CD-SPENDING THRESHOLDS
Raises procurement thresholds for small Illinois counties, boosting IT purchase exemptions to 45k and general purchases to 40k while boosting bid integrity and use-tax compliance.
Raises procurement thresholds for small Illinois counties, boosting IT purchase exemptions to 45k and general purchases to 40k while boosting bid integrity and use-tax compliance.
Date Introduced: February 2, 2026
Sponsor: Sen. Steve McClure
Purpose
- Amend the Counties Code to adjust procurement thresholds and procedures for counties with fewer than 2,000,000 inhabitants.
- Align bidding and contracting requirements to reflect new monetary thresholds for goods, services, and data processing/IT-related purchases.
Key Provisions
1) Increased competitive bidding threshold for general purchases
- Before: Purchases by counties (or certain officials) under $30,000 (and general procurement rules for higher amounts) were subject to the existing bidding framework.
- Now: For counties with fewer than 2,000,000 residents (or elected officials in such counties, including those who control internal operations), purchases of services, materials, equipment, or supplies exceeding $40,000 (instead of $30,000) must follow specified procurement methods.
- Procurement options remain:
- Let contract to the lowest responsible bidder after advertising for bids in a local newspaper (or a generally circulating county newspaper if none within the county).
- Let contracts without advertising in emergencies, if authorized by the county board.
- Let contracts without advertising for the expedited replacement of a disabled, inoperable, or damaged patrol vehicle (sheriff’s department), if authorized by the county board.
- Evaluation criteria for lowest responsible bidder may consider:
- Quality, conformity to specifications, suitability, support services, delivery terms.
- Specific considerations for networked, integrated computer systems, and compatibility with existing equipment.
- Bidder’s active participation in applicable DOL-registered apprenticeship programs.
- Whether a bidder is a private enterprise versus a State-controlled enterprise (county may prefer a private enterprise, even if the private bid is higher than a State-controlled enterprise).
2) IT and data processing purchases—lower single-order thresholds
- In addition to general procurement rules, the bill sets a separate provision for IT-related purchases.
- Counties may let without advertising for bids for individual orders not exceeding $45,000 (instead of $35,000) for data processing equipment, software, services, and related telecommunications and inter-connect equipment and services.
- This appears as a parallel, IT-focused exception to the standard bidding requirements.
3) Use tax compliance requirement (affiliate/supplier transparency)
- Counties may require contractors and all affiliates to collect and remit Illinois Use Tax on all tangible property sold into Illinois.
- Defines “affiliate” based on control/ownership relationships (direct, indirect, or constructive), including entities with more than 10% voting securities ownership.
- Applies regardless of whether the entity is a retailer maintaining a physical location in Illinois.
- Purpose: Increase tax compliance and potentially expand tax revenue capture from county contract spending.
4) Certifications and bid integrity
- Bids and contracts may require a certification that the bidder is eligible to bid and that the county may void contracts if the certification is false.
Other Provisions
- The existing exceptions related to federal government contracts and purchases of used equipment remain unchanged.
- Administrative and procedural details reference standard requirements for bid evaluation, as well as potential board authorization for exceptions.
Affected Entities
- Counties with fewer than 2 million inhabitants.
- Elected officials in those counties (including those managing the office’s internal operations).
- Vendors and contractors bidding on county purchases, including IT/software/service providers.
- Affiliated entities and their use-tax obligations under county contracts.
Timeline/Status
- Introduced 2/2/2026; referred through committee process with Rule 2-10 deadlines noted for procedural scheduling.
- No enacted effective date is specified in the text provided; the bill would take effect as enacted and upon any specified implementation timeline in the final statute.
Impact Considerations
- Increases in permissible single-order IT spend without advertising (from $35k to $45k) could speed procurements for IT needs but may reduce competitive bidding opportunities for smaller IT purchases.
- Higher threshold for general purchases ($40k vs. $30k) may reduce the frequency of formal bidding for mid-sized procurements in smaller counties.
- Tax compliance requirements (use tax) could improve revenue collection on county contracts but may impose additional administrative duties on contractors and affiliates.
- The emphasis on apprenticeship participation and private-state enterprise considerations could influence bid selection beyond price alone.
Overall, SB3109 seeks to adjust procurement thresholds for smaller Illinois counties, with a particular emphasis on IT-related procurements, while reinforcing bid integrity and introducing an optional use-tax compliance requirement for county contracts.
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.