Area agencies on aging expenditures.

(1) As used in this section, the term:

(a) “Commodity” means any of the various supplies, materials, goods, merchandise, food, equipment, information technology, and other personal property purchased, leased, or otherwise contracted for by an area agency on aging.

(b) “Competitive solicitation” means the process of requesting and receiving two or more sealed bids, proposals, or replies submitted by responsive vendors in accordance with the terms of a competitive process, regardless of the method of procurement.

(c) “Contractual services” means the rendering by a contractor of its time and effort rather than the furnishing of specific commodities. The term applies only to those services rendered by individuals and firms that are independent contractors, and such services may include, but are not limited to, evaluations; consultations; maintenance; accounting; security; management systems; management consulting; educational training programs; research and development studies or reports on the findings of consultants engaged thereunder; and professional, technical, and social services.

(2) The procurement of commodities or contractual services in excess of $35,000 by an area agency on aging is subject to the competitive solicitation process. Any competitive solicitation shall be made available simultaneously to all vendors, must include the time and date for the receipt of bids, proposals, or replies and of the public opening, and must include all contractual terms and conditions applicable to the procurement, including the criteria to be used in determining acceptability and relative merit of the bid, proposal, or reply.

(3) The chief executive officer or the executive director of an area agency on aging may not receive a salary in excess of 150 percent of the annual salary paid to the Secretary of Elderly Affairs from state and federal funds. This limitation applies regardless of the number of contracts an area agency on aging holds with the department. This subsection does not prohibit any party from providing cash that is not from appropriated state funds to the chief executive officer or the executive director of an area agency on aging.

(4) The department must impose financial penalties or sanctions, as established by the department and incorporated into the contract, for noncompliance with this section.