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| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2106 Introduced , by Rep. Daniel Didech SYNOPSIS AS INTRODUCED:
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| 105 ILCS 5/10-20.21 | | 105 ILCS 5/34-21.3 | from Ch. 122, par. 34-21.3 |
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Amends the School Code. In provisions concerning the awarding of contracts by school boards, provides that on January 1 of each year, the State Board of Education shall adjust the amount for which a contract must be awarded to the lowest responsible bidder for inflation, as determined by the Consumer Price Index for All Urban Consumers for all items and rounded to the nearest $100. Provides that the State Board of Education shall publish this information on its official website.
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| | A BILL FOR |
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| | HB2106 | | LRB103 04728 RJT 49737 b |
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| 1 | | AN ACT concerning education.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The School Code is amended by changing Sections |
| 5 | | 10-20.21 and 34-21.3 as follows:
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| 6 | | (105 ILCS 5/10-20.21)
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| 7 | | Sec. 10-20.21. Contracts.
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| 8 | | (a)
To award all contracts for
purchase of supplies and |
| 9 | | materials or work involving an expenditure in excess of |
| 10 | | $25,000 or a lower amount as required by board policy
to the |
| 11 | | lowest responsible bidder, considering conformity with
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| 12 | | specifications, terms of delivery, quality and serviceability, |
| 13 | | after due
advertisement, except the following: |
| 14 | | (i) contracts for the services of
individuals |
| 15 | | possessing a high degree of professional skill where the
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| 16 | | ability or fitness of the individual plays an important |
| 17 | | part; |
| 18 | | (ii)
contracts for the printing of finance committee |
| 19 | | reports and departmental
reports; |
| 20 | | (iii) contracts for the printing or engraving of |
| 21 | | bonds, tax
warrants and other evidences of indebtedness; |
| 22 | | (iv) contracts for the
purchase of perishable foods |
| 23 | | and perishable beverages; |
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| 1 | | (v) contracts for
materials and work which have been |
| 2 | | awarded to the lowest responsible bidder
after due |
| 3 | | advertisement, but due to unforeseen revisions, not the |
| 4 | | fault of
the contractor for materials and work, must be |
| 5 | | revised causing expenditures
not in excess of 10% of the |
| 6 | | contract price; |
| 7 | | (vi)
contracts for the maintenance or servicing of, or |
| 8 | | provision of
repair parts for, equipment which are made |
| 9 | | with the manufacturer or
authorized service agent of that |
| 10 | | equipment where the provision of parts,
maintenance, or |
| 11 | | servicing can best be performed by the manufacturer or
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| 12 | | authorized service agent; |
| 13 | | (vii) purchases and contracts for the use,
purchase, |
| 14 | | delivery, movement, or installation of data processing |
| 15 | | equipment,
software, or services and telecommunications |
| 16 | | and interconnect
equipment, software, and services; |
| 17 | | (viii) contracts for duplicating
machines and |
| 18 | | supplies; |
| 19 | | (ix) contracts for the purchase of fuel, including |
| 20 | | diesel, gasoline, oil, aviation, natural gas, or propane, |
| 21 | | lubricants, or other petroleum products; |
| 22 | | (x) purchases of
equipment previously owned by some |
| 23 | | entity other than the district
itself; |
| 24 | | (xi) contracts for repair, maintenance, remodeling, |
| 25 | | renovation, or
construction, or a single project involving |
| 26 | | an expenditure not to exceed
$50,000 and not involving a |
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| 1 | | change or increase in the size, type, or extent
of an |
| 2 | | existing facility; |
| 3 | | (xii) contracts for goods or services procured
from |
| 4 | | another governmental agency; |
| 5 | | (xiii) contracts for goods or services
which are |
| 6 | | economically procurable from only one source, such as for |
| 7 | | the
purchase of magazines, books, periodicals, pamphlets |
| 8 | | and reports, and for
utility services such as water, |
| 9 | | light, heat, telephone or telegraph;
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| 10 | | (xiv) where funds are expended in an emergency and |
| 11 | | such emergency
expenditure is approved by 3/4 of the |
| 12 | | members of the board; |
| 13 | | (xv) State master contracts authorized under Article |
| 14 | | 28A of this Code; |
| 15 | | (xvi) contracts providing for the transportation of |
| 16 | | pupils, which contracts must be advertised in the same |
| 17 | | manner as competitive bids and awarded by first |
| 18 | | considering the bidder or bidders most able to provide |
| 19 | | safety and comfort for the pupils, stability of service, |
| 20 | | and any other factors set forth in the request for |
| 21 | | proposal regarding quality of service, and then price; and |
| 22 | | (xvii) contracts for goods, services, or management in |
| 23 | | the operation of a school's food service, including a |
| 24 | | school that participates in any of the United States |
| 25 | | Department of Agriculture's child nutrition programs if a |
| 26 | | good faith effort is made on behalf of the school district |
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| 1 | | to give preference to: |
| 2 | | (1) contracts that procure food that promotes the |
| 3 | | health and well-being of students, in compliance with |
| 4 | | United States Department of Agriculture nutrition |
| 5 | | standards for school meals. Contracts should also |
| 6 | | promote the production of scratch made, minimally |
| 7 | | processed foods; |
| 8 | | (2) contracts that give a preference to State or |
| 9 | | regional suppliers that source local food products; |
| 10 | | (3) contracts that give a preference to food |
| 11 | | suppliers that utilize producers that adopt hormone |
| 12 | | and pest management practices recommended by the |
| 13 | | United States Department of Agriculture; |
| 14 | | (4) contracts that give a preference to food |
| 15 | | suppliers that value animal welfare; and |
| 16 | | (5) contracts that increase opportunities for |
| 17 | | businesses owned and operated by minorities, women, or |
| 18 | | persons with disabilities. |
| 19 | | Food supplier data shall be submitted to the school |
| 20 | | district at the time of the bid, to the best of the |
| 21 | | bidder's ability, and updated annually thereafter during |
| 22 | | the term of the contract. The contractor shall submit the |
| 23 | | updated food supplier data. The data required under this |
| 24 | | item (xvii) shall include the name and address of each |
| 25 | | supplier, distributor, processor, and producer involved in |
| 26 | | the provision of the products that the bidder is to |
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| 1 | | supply. |
| 2 | | However, at no time shall a cause of action lie against a |
| 3 | | school board for awarding a pupil transportation contract per |
| 4 | | the standards set forth in this subsection (a) unless the |
| 5 | | cause of action is based on fraudulent conduct. |
| 6 | | All competitive
bids for contracts involving an |
| 7 | | expenditure in excess of $25,000 or a lower amount as required |
| 8 | | by board policy must be
sealed by the bidder and must be opened |
| 9 | | by a member or employee of the
school board at a public bid |
| 10 | | opening at which the contents of the bids
must be announced. |
| 11 | | Each bidder must receive at least 3 days' notice of the
time |
| 12 | | and place of the bid opening. For purposes of this Section due
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| 13 | | advertisement includes, but is not limited to, at least one |
| 14 | | public notice
at least 10 days before the bid date in a |
| 15 | | newspaper published in the
district, or if no newspaper is |
| 16 | | published in the district, in a newspaper
of general |
| 17 | | circulation in the area of the district. State master |
| 18 | | contracts and certified education purchasing contracts, as |
| 19 | | defined in Article 28A of this Code, are not subject to the |
| 20 | | requirements of this paragraph.
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| 21 | | Under this Section, the acceptance of bids sealed by a |
| 22 | | bidder and the opening of these bids at a public bid opening |
| 23 | | may be permitted by an electronic process for communicating, |
| 24 | | accepting, and opening competitive bids. An electronic bidding |
| 25 | | process must provide for, but is not limited to, the following |
| 26 | | safeguards: |
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| 1 | | (1) On the date and time certain of a bid opening, the |
| 2 | | primary person conducting the competitive, sealed, |
| 3 | | electronic bid process shall log onto a specified database |
| 4 | | using a unique username and password previously assigned |
| 5 | | to the bidder to allow access to the bidder's specific bid |
| 6 | | project number. |
| 7 | | (2) The specified electronic database must be on a |
| 8 | | network that (i) is in a secure environment behind a |
| 9 | | firewall; (ii) has specific encryption tools; (iii) |
| 10 | | maintains specific intrusion detection systems; (iv) has |
| 11 | | redundant systems architecture with data storage back-up, |
| 12 | | whether by compact disc or tape; and (v) maintains a |
| 13 | | disaster recovery plan.
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| 14 | | It is the legislative intent of Public Act 96-841 to maintain |
| 15 | | the integrity of the sealed bidding process provided for in |
| 16 | | this Section, to further limit any possibility of bid-rigging, |
| 17 | | to reduce administrative costs to school districts, and to |
| 18 | | effect efficiencies in communications with bidders. |
| 19 | | On January 1 of each year, the State Board of Education |
| 20 | | shall adjust the amount established in this subsection (a) for |
| 21 | | which a contract must be awarded to the lowest responsible |
| 22 | | bidder for inflation, as determined by the Consumer Price |
| 23 | | Index for All Urban Consumers for all items published by the |
| 24 | | Bureau of Labor Statistics of the United States Department of |
| 25 | | Labor and rounded to the nearest $100. The State Board of |
| 26 | | Education shall publish this information on its official |
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| 1 | | website. |
| 2 | | (b) To require, as a condition of any contract for goods |
| 3 | | and services,
that persons
bidding for and awarded a contract |
| 4 | | and all affiliates of the person collect and
remit
Illinois |
| 5 | | Use Tax on all sales of tangible personal property into the |
| 6 | | State of
Illinois in
accordance with the provisions of the |
| 7 | | Illinois Use Tax Act regardless of whether
the
person or |
| 8 | | affiliate is a "retailer maintaining a place of business |
| 9 | | within this
State" as
defined in Section 2 of the Use Tax Act. |
| 10 | | For purposes of this Section, the term
"affiliate"
means any |
| 11 | | entity that (1) directly, indirectly, or constructively |
| 12 | | controls
another entity, (2)
is directly, indirectly, or |
| 13 | | constructively controlled by another entity, or (3)
is subject |
| 14 | | to
the control of a common entity. For purposes of this |
| 15 | | subsection (b), an entity
controls
another entity if it owns, |
| 16 | | directly or individually, more than 10% of the
voting
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| 17 | | securities
of that entity. As used in this subsection (b), the |
| 18 | | term "voting security"
means a security
that (1) confers upon |
| 19 | | the holder the right to vote for the election of members
of the |
| 20 | | board
of directors or similar governing body of the business |
| 21 | | or (2) is convertible
into, or entitles
the holder to receive |
| 22 | | upon its exercise, a security that confers such a right
to
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| 23 | | vote. A
general partnership interest is a voting security.
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| 24 | | To require that bids and contracts include a certification |
| 25 | | by the bidder
or
contractor that the bidder or contractor is |
| 26 | | not barred from bidding for or
entering into a
contract under |
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| 1 | | this Section and that the bidder or contractor acknowledges |
| 2 | | that
the school
board may declare the contract void if the |
| 3 | | certification completed pursuant to
this
subsection (b) is |
| 4 | | false.
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| 5 | | (b-5) To require all contracts and agreements that pertain |
| 6 | | to goods and services and that are intended to generate |
| 7 | | additional revenue and other remunerations for the school |
| 8 | | district in excess of $1,000, including without limitation |
| 9 | | vending machine contracts, sports and other attire, class |
| 10 | | rings, and photographic services, to be approved by the school |
| 11 | | board. The school board shall file as an attachment to its |
| 12 | | annual budget a report, in a form as determined by the State |
| 13 | | Board of Education, indicating for the prior year the name of |
| 14 | | the vendor, the product or service provided, and the actual |
| 15 | | net revenue and non-monetary remuneration from each of the |
| 16 | | contracts or agreements. In addition, the report shall |
| 17 | | indicate for what purpose the revenue was used and how and to |
| 18 | | whom the non-monetary remuneration was distributed.
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| 19 | | (b-10) To prohibit any contract to purchase food with a |
| 20 | | bidder or offeror if the bidder's or offeror's contract terms |
| 21 | | prohibit the school from donating food to food banks, |
| 22 | | including, but not limited to, homeless shelters, food |
| 23 | | pantries, and soup kitchens. |
| 24 | | (c) If the State education purchasing entity creates a |
| 25 | | master contract as defined in Article 28A of this Code, then |
| 26 | | the State education purchasing entity shall notify school |
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| 1 | | districts of the existence of the master contract. |
| 2 | | (d) In purchasing supplies, materials, equipment, or |
| 3 | | services that are not subject to subsection (c) of this |
| 4 | | Section, before a school district solicits bids or awards a |
| 5 | | contract, the district may review and consider as a bid under |
| 6 | | subsection (a) of this Section certified education purchasing |
| 7 | | contracts that are already available through the State |
| 8 | | education purchasing entity. |
| 9 | | (Source: P.A. 101-570, eff. 8-23-19; 101-632, eff. 6-5-20; |
| 10 | | 102-1101, eff. 6-29-22.)
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| 11 | | (105 ILCS 5/34-21.3) (from Ch. 122, par. 34-21.3)
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| 12 | | Sec. 34-21.3. Contracts. The board shall by record vote |
| 13 | | let all
contracts (other than those excepted
by Section |
| 14 | | 10-20.21 of this The School Code) for supplies, materials,
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| 15 | | work, and contracts with private carriers for transportation
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| 16 | | of pupils, involving an expenditure in excess of $25,000 or a |
| 17 | | lower amount as required by board policy by competitive
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| 18 | | bidding as provided in Section 10-20.21 of this The School |
| 19 | | Code.
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| 20 | | The board may delegate to the general superintendent of |
| 21 | | schools, by
resolution, the authority to approve contracts in |
| 22 | | amounts of $25,000 or
less.
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| 23 | | On January 1 of each year, the State Board of Education |
| 24 | | shall adjust the amount established in this Section for which |
| 25 | | a contract must be awarded to the lowest responsible bidder |
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| 1 | | for inflation, as determined by the Consumer Price Index for |
| 2 | | All Urban Consumers for all items published by the Bureau of |
| 3 | | Labor Statistics of the United States Department of Labor and |
| 4 | | rounded to the nearest $100. The State Board of Education |
| 5 | | shall publish this information on its official website. |
| 6 | | For a period of one year from and after the expiration or |
| 7 | | other termination
of his or her term of office as a member of |
| 8 | | the board: (i) the former board
member shall not be eligible |
| 9 | | for employment nor be employed by the board, a
local school |
| 10 | | council, an attendance center, or any other
subdivision or |
| 11 | | agent of the board or the school district governed by the |
| 12 | | board,
and (ii) neither the board nor the chief purchasing |
| 13 | | officer shall let or
delegate
authority to let any contract |
| 14 | | for
services, employment, or other work to the former board |
| 15 | | member or to any
corporation,
partnership, association, sole |
| 16 | | proprietorship, or other entity other than
publicly traded |
| 17 | | companies from which the
former board member receives an |
| 18 | | annual income, dividends, or other compensation
in excess of |
| 19 | | $1,500. Any contract that is entered into by or under a
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| 20 | | delegation of authority from the board or the chief purchasing |
| 21 | | officer shall
contain a
provision stating that
the contract is |
| 22 | | not legally binding on the board if entered into in violation
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| 23 | | of the provisions of this paragraph.
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| 24 | | In addition, the State Board of Education, in consultation |
| 25 | | with the board,
shall (i) review existing conflict of interest |
| 26 | | and disclosure laws or
regulations that are applicable to the |
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| 1 | | executive officers and governing boards
of school districts |
| 2 | | organized under this Article and school districts
generally, |
| 3 | | (ii) determine what additional disclosure and conflict of |
| 4 | | interest
provisions would enhance the reputation and fiscal |
| 5 | | integrity of the board and
the procedure under which contracts |
| 6 | | for goods and services are let, and (iii)
develop appropriate |
| 7 | | reporting forms and procedures applicable to the executive
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| 8 | | officers, governing board, and other officials of the school |
| 9 | | district.
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| 10 | | (Source: P.A. 95-990, eff. 10-3-08.)
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