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SB 4179

PROCUREMENT-CHINA

104th Regular Session Introduced by Bill Cunningham

Prohibits bidding by companies with Chinese government ownership for office computers, printers, and videoconferencing; requires certifications and imposes penalties for false cert

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Bill Summary · SB 4179

Summary of SB4179 (104th General Assembly) – Illinois

Purpose and intent

  • Establishes prohibitions related to contracting with “companies of concern” that have ownership ties to the government of China.
  • Aims to safeguard state procurement for certain office equipment and related services from entities with Chinese ownership.

Key provisions and changes

  • Definitions
    • Defines “company of concern” as a company in which the government of China has an ownership stake.
  • Prohibited bids and proposals
    • A company of concern is ineligible to bid on or submit a proposal for a contract with a State agency for:
    • Goods or services, including the procurement or purchase of computers, printers, or interoperable videoconferencing services needed for an office environment.
    • This applies where the equipment’s manufacturer, bidder, or offeror (or any subsidiary or parent entity of the manufacturer, bidder, or offeror) is an entity with Chinese ownership.
  • Scope of prohibition
    • The prohibition also applies if:
    • A State agency has contracted with a third party for the procurement, purchase, or expenditure of funds on any of the described equipment.
    • A local agency, local government, or other local entity receiving State funds uses funds for procurement of the described equipment.
  • Certification requirement
    • State agencies must require bidders/offerors to certify that they are not a company of concern.
  • Enforcement and penalties
    • If the Department of Central Management Services (CMS) determines a false certification has been submitted:
    • Civil penalty: twice the contract amount for which the bid or proposal was submitted.
    • Contract termination: the State agency or CMS must terminate the contract with the company.
    • Ineligibility: the company becomes ineligible to bid on any State contracts in the future.
  • Effective scope
    • Applies to the initial procurement of computers, printers, and interoperable videoconferencing equipment for office environments, and to related procurement arrangements (including third-party contracts and fund expenditures) at both state and local levels when State funds are involved.

Who would be affected

  • Bidders, offerors, and contractors seeking State contracts for:
    • Computers, printers, and interoperable videoconferencing systems for office use.
  • Subcontractors and third-party sellers involved in such procurements.
  • State agencies (including the Department of Central Management Services) responsible for administering procurements and enforcing certifications and penalties.
  • Local governments or entities receiving State funds for related procurements.

Procedural and timeline notes

  • The bill adds a new section (20-91) to the Illinois Procurement Code.
  • It requires a certification process for bidders on affected contracts.
  • It creates a compliance mechanism with penalties and contract termination in cases of false certification.
  • Specific effective dates are not stated in the summary text provided; the bill would become law following the usual legislative process and gubernatorial action, with the provisions taking effect as enacted.

Practical impact and considerations

  • Potential chilling effect on vendors with any Chinese ownership or associations, depending on how broadly “ownership stake” is interpreted.
  • Increased due diligence for State and local procurements involving office technology equipment.
  • Administrative burden on CMS and state agencies to verify certifications and enforce penalties.
  • Could influence vendors to restructure ownership or supply chains to avoid eligibility concerns.

If you’d like, I can tailor this summary to a particular audience (e.g., policymakers, procurement officers, or business associations) or add a side-by-side comparison with existing Illinois procurement rules.

Compiled from official sources — confirm details with the bill’s official record.

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