Rep. Jehan A. Gordon-Booth
Filed: 3/19/2013
 
 


 




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1
AMENDMENT TO HOUSE BILL 3232




2 AMENDMENT NO. ______. Amend House Bill 3232 by replacing 
3everything after the enacting clause with the following:


4 "Section 5. The School Code is amended by changing Section 
510-20.21 as follows:



6 (105 ILCS 5/10-20.21)


7 Sec. 10-20.21. Contracts. 

8 (a)
To award all contracts for
purchase of supplies and 
9materials or work involving an expenditure in excess of $25,000 
10or a lower amount as required by board policy
to the lowest 
11responsible bidder, considering conformity with

12specifications, terms of delivery, quality and serviceability, 
13after due
advertisement, except the following: (i) contracts 
14for the services of
individuals possessing a high degree of 
15professional skill where the
ability or fitness of the 
16individual plays an important part; (ii)
contracts for the 
 
 
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1printing of finance committee reports and departmental

2reports; (iii) contracts for the printing or engraving of 
3bonds, tax
warrants and other evidences of indebtedness; (iv) 
4contracts for the
purchase of perishable foods and perishable 
5beverages; (v) contracts for
materials and work which have been 
6awarded to the lowest responsible bidder
after due 
7advertisement, but due to unforeseen revisions, not the fault 
8of
the contractor for materials and work, must be revised 
9causing expenditures
not in excess of 10% of the contract 
10price; (vi)
contracts for the maintenance or servicing of, or 
11provision of
repair parts for, equipment which are made with 
12the manufacturer or
authorized service agent of that equipment 
13where the provision of parts,
maintenance, or servicing can 
14best be performed by the manufacturer or
authorized service 
15agent; (vii) purchases and contracts for the use,
purchase, 
16delivery, movement, or installation of data processing 
17equipment,
software, or services and telecommunications and 
18interconnect
equipment, software, and services; (viii) 
19contracts for duplicating
machines and supplies; (ix) 
20contracts for the purchase of natural gas when
the cost is less 
21than that offered by a public utility; (x) purchases of

22equipment previously owned by some entity other than the 
23district
itself; (xi) contracts for repair, maintenance, 
24remodeling, renovation, or
construction, or a single project 
25involving an expenditure not to exceed
$50,000 and not 
26involving a change or increase in the size, type, or extent
of 
 
 
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1an existing facility; (xii) contracts for goods or services 
2procured
from another governmental agency; (xiii) contracts 
3for goods or services
which are economically procurable from 
4only one source, such as for the
purchase of magazines, books, 
5periodicals, pamphlets and reports, and for
utility services 
6such as water, light, heat, telephone or telegraph;
(xiv) where 
7funds are expended in an emergency and such emergency

8expenditure is approved by 3/4 of the members of the board; 
9(xv) State master contracts authorized under Article 28A of 
10this Code; and (xvi) contracts providing for the transportation 
11of pupils, which contracts must be advertised in the same 
12manner as competitive bids and awarded by first considering the 
13bidder or bidders most able to provide safety and comfort for 
14the pupils, stability of service, and any other factors set 
15forth in the request for proposal regarding quality of service, 
16and then price; and (xvii) contracts awarded to a contractor 
17located in the county where the school district or any portion 
18of the school district is situated who is not the lowest 
19bidder, but who is a responsible bidder who qualifies under 
20this Section and who has submitted a bid that does not exceed 
212% over the lowest responsible bid received by the board. 
22However, at no time shall a cause of action lie against a 
23school board for awarding a pupil transportation contract per 
24the standards set forth in this subsection (a) unless the cause 
25of action is based on fraudulent conduct. 
26 All competitive
bids for contracts involving an 
 
 
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1expenditure in excess of $25,000 or a lower amount as required 
2by board policy must be
sealed by the bidder and must be opened 
3by a member or employee of the
school board at a public bid 
4opening at which the contents of the bids
must be announced. 
5Each bidder must receive at least 3 days' notice of the
time 
6and place of the bid opening. For purposes of this Section due

7advertisement includes, but is not limited to, at least one 
8public notice
at least 10 days before the bid date in a 
9newspaper published in the
district, or if no newspaper is 
10published in the district, in a newspaper
of general 
11circulation in the area of the district. State master contracts 
12and certified education purchasing contracts, as defined in 
13Article 28A of this Code, are not subject to the requirements 
14of this paragraph.


15 Under this Section, the acceptance of bids sealed by a 
16bidder and the opening of these bids at a public bid opening 
17may be permitted by an electronic process for communicating, 
18accepting, and opening competitive bids. However, bids for 
19construction purposes are prohibited from being communicated, 
20accepted, or opened electronically. An electronic bidding 
21process must provide for, but is not limited to, the following 
22safeguards:
23  (1) On the date and time certain of a bid opening, the 
24 primary person conducting the competitive, sealed, 
25 electronic bid process shall log onto a specified database 
26 using a unique username and password previously assigned to 
 
 
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1 the bidder to allow access to the bidder's specific bid 
2 project number.
3  (2) The specified electronic database must be on a 
4 network that (i) is in a secure environment behind a 
5 firewall; (ii) has specific encryption tools; (iii) 
6 maintains specific intrusion detection systems; (iv) has 
7 redundant systems architecture with data storage back-up, 
8 whether by compact disc or tape; and (v) maintains a 
9 disaster recovery plan.

10It is the legislative intent of Public Act 96-841 to maintain 
11the integrity of the sealed bidding process provided for in 
12this Section, to further limit any possibility of bid-rigging, 
13to reduce administrative costs to school districts, and to 
14effect efficiencies in communications with bidders. 
15 (b) To require, as a condition of any contract for goods 
16and services,
that persons
bidding for and awarded a contract 
17and all affiliates of the person collect and
remit
Illinois Use 
18Tax on all sales of tangible personal property into the State 
19of
Illinois in
accordance with the provisions of the Illinois 
20Use Tax Act regardless of whether
the
person or affiliate is a 
21"retailer maintaining a place of business within this
State" as

22defined in Section 2 of the Use Tax Act. For purposes of this 
23Section, the term
"affiliate"
means any entity that (1) 
24directly, indirectly, or constructively controls
another 
25entity, (2)
is directly, indirectly, or constructively 
26controlled by another entity, or (3)
is subject to
the control 
 
 
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1of a common entity. For purposes of this subsection (b), an 
2entity
controls
another entity if it owns, directly or 
3individually, more than 10% of the
voting
securities
of that 
4entity. As used in this subsection (b), the term "voting 
5security"
means a security
that (1) confers upon the holder the 
6right to vote for the election of members
of the board
of 
7directors or similar governing body of the business or (2) is 
8convertible
into, or entitles
the holder to receive upon its 
9exercise, a security that confers such a right
to
vote. A

10general partnership interest is a voting security.

11 To require that bids and contracts include a certification 
12by the bidder
or
contractor that the bidder or contractor is 
13not barred from bidding for or
entering into a
contract under 
14this Section and that the bidder or contractor acknowledges 
15that
the school
board may declare the contract void if the 
16certification completed pursuant to
this
subsection (b) is 
17false.

18 (b-5) To require all contracts and agreements that pertain 
19to goods and services and that are intended to generate 
20additional revenue and other remunerations for the school 
21district in excess of $1,000, including without limitation 
22vending machine contracts, sports and other attire, class 
23rings, and photographic services, to be approved by the school 
24board. The school board shall file as an attachment to its 
25annual budget a report, in a form as determined by the State 
26Board of Education, indicating for the prior year the name of 
 
 
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1the vendor, the product or service provided, and the actual net 
2revenue and non-monetary remuneration from each of the 
3contracts or agreements. In addition, the report shall indicate 
4for what purpose the revenue was used and how and to whom the 
5non-monetary remuneration was distributed.

6 (c) If the State education purchasing entity creates a 
7master contract as defined in Article 28A of this Code, then 
8the State education purchasing entity shall notify school 
9districts of the existence of the master contract. 
10 (d) In purchasing supplies, materials, equipment, or 
11services that are not subject to subsection (c) of this 
12Section, before a school district solicits bids or awards a 
13contract, the district may review and consider as a bid under 
14subsection (a) of this Section certified education purchasing 
15contracts that are already available through the State 
16education purchasing entity.
17(Source: P.A. 96-392, eff. 1-1-10; 96-841, eff. 12-23-09; 
1896-1000, eff. 7-2-10; 97-951, eff. 8-13-12.)



19 Section 99. Effective date. This Act takes effect upon 
20becoming law.".