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HB 3557

Relating to standard charges established by a hospital.

2025 Regular Session Introduced by Willy Chotzen and 5 co-sponsors

HB 3557 broadens higher-ed carve-outs from the Illinois Procurement Code, listing exemptions (libraries, events, research, health facilities, investments) with required reporting.

In committee upon adjournment.
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Bill Summary · HB 3557

HB 3557 — Summary (Introduced 2025)

Status: In committee upon adjournment (last action 2025-06-28). Introduced Feb 2025 by Rep. Katie Stuart.

Purpose / Intent

HB 3557 amends Section 1‑13 of the Illinois Procurement Code to clarify and expand the extent to which the Code does not apply to public institutions of higher education. In short, the bill reiterates that the Procurement Code generally does not govern college and university procurements while specifying numerous categories of procurements that are exempt, prescribing reporting and limited oversight requirements, and preserving certain administrative authorities.

Key provisions and changes

  • Restates that the Illinois Procurement Code “shall not apply to public institutions of higher education,” subject to the enumerated exceptions and conditions in the section.
  • Lists specific categories of procurements by or on behalf of public institutions that are exempt from the Code, including (but not limited to):
    • Memberships in professional/academic organizations and athletic organizations.
    • Event expenditures paid exclusively from event revenues, gifts/donations, private grants, or combinations thereof.
    • Contracts required or identified by a sponsor (majority funder) of an event.
    • Athletic, musical, theatrical, or artistic productions and related services.
    • Periodicals, books, subscriptions, database licenses, and other library publications (except textbooks for student use or materials for resale/rental).
    • Student placements (externships, practicums, rotations, residencies).
    • Broadcast programming and license rights for university-operated radio/TV stations.
    • Sponsored research and activities funded by sponsors or non‑state sources.
    • Contracts with certain foreign entities where the entity lacks a U.S. office or is a sole source.
    • Sole-source software/licenses available only from the creator/manufacturer.
    • International student recruitment expenditures incurred outside the U.S.
    • Contracts under the Public University Energy Conservation Act.
    • Advertising buys directly from a media station or station owner.
  • Reporting and publication requirements:
    • Each contract with annual value over $100,000 related to procurement of goods/services must be published in the Illinois Procurement Bulletin within 14 calendar days after execution.
    • Each public institution must submit a monthly procurement report to the Chief Procurement Officer (CPO) with contractor name, description, total amount, term, and exception relied upon; copies of contracts must be made available on request.
    • The CPO must submit an annual summary report to the Governor and General Assembly by November 1 each year.
  • Medical teaching facilities exception (subsection b‑5):
    • Procurements necessary for delivery of care at medical/dental/pharmacy/veterinary teaching facilities (e.g., SIU and University of Illinois facilities, university health centers/dispensaries) are exempt.
    • Operators may deem additional related supplies/services exempt; other items remain subject to the CPO for Public Institutions of Higher Education, who may establish expedited processes, waivers, or modified requirements. Procurements under this subsection must be documented and may require publication.
  • University of Illinois investment services exception (subsection b‑10):
    • Investment services contracts may be entered or renewed outside Code requirements.
    • Notice of intent to renew must be published at least 14 days before renewal; a public hearing must be held for comment. Contracts entered/renewed under this exception must be published in the Illinois Public Higher Education Procurement Bulletin within 5 days of execution.
  • Grant-funded procurements:
    • Institutions should follow the Procurement Code “to the extent practical” when fulfilling grants; the CPO may waive contract/registration/certification/hearing requirements upon written request if compliance is impractical, provided the institution documents the reasons and efforts made to identify contractors.

Who is affected

  • Public institutions of higher education (state universities, public colleges).
  • University-operated medical/dental/pharmacy/veterinary facilities.
  • Vendors, contractors, software licensors, media outlets, sponsors, foreign entities doing business with public institutions.
  • The Chief Procurement Officer and oversight offices that receive monthly and annual procurement reports.
  • Students (indirectly, via textbook/materials exceptions and university services).

Procedural/timeline notes

  • Introduced in February 2025; referred to multiple committees (Rules, Executive, Behavioral Health and Health Care, subcommittee on Property Tax Appraisals).
  • Public hearing was scheduled May 1, 2025 (no action taken in subcommittee). Current status: in committee upon adjournment (as of 2025-06-28).

Impact considerations

  • Expands institutional autonomy over procurements while maintaining transparency through reporting and publication thresholds.
  • Preserves targeted oversight (CPO authority, publication, and waiver processes) for certain categories, particularly health‑care teaching facilities and investment services.
  • Could speed procurement for academics, events, sponsored research, and health services but may reduce competitive procurement protections depending on institutions’ use of exceptions.

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

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