Bill Text: IL HB3232 | 2013-2014 | 98th General Assembly | Engrossed

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Bill Title: Amends the School Code. Exempts contracts awarded to a local contractor who is not the lowest responsible bidder, but who is a qualified bidder who has submitted a bid that does not exceed 2% over the lowest responsible bid received by the school board, from the requirement that a school board award all contracts for the purchase of supplies and materials or work involving an expenditure in excess of $25,000 to the lowest responsible bidder. Effective immediately.

Spectrum: Strong Partisan Bill (Democrat 12-1)

Status: (Passed) 2014-07-24 - Public Act . . . . . . . . . 98-0783 [HB3232 Detail]

Download: Illinois-2013-HB3232-Engrossed.html

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AN ACT concerning education.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The School Code is amended by changing Section
10-20.21 as follows:
(105 ILCS 5/10-20.21)
Sec. 10-20.21. Contracts.
(a) To award all contracts for purchase of supplies and
materials or work involving an expenditure in excess of $25,000
or a lower amount as required by board policy to the lowest
responsible bidder, considering conformity with
specifications, terms of delivery, quality and serviceability,
after due advertisement, except the following: (i) contracts
for the services of individuals possessing a high degree of
professional skill where the ability or fitness of the
individual plays an important part; (ii) contracts for the
printing of finance committee reports and departmental
reports; (iii) contracts for the printing or engraving of
bonds, tax warrants and other evidences of indebtedness; (iv)
contracts for the purchase of perishable foods and perishable
beverages; (v) contracts for materials and work which have been
awarded to the lowest responsible bidder after due
advertisement, but due to unforeseen revisions, not the fault

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of the contractor for materials and work, must be revised
causing expenditures not in excess of 10% of the contract
price; (vi) contracts for the maintenance or servicing of, or
provision of repair parts for, equipment which are made with
the manufacturer or authorized service agent of that equipment
where the provision of parts, maintenance, or servicing can
best be performed by the manufacturer or authorized service
agent; (vii) purchases and contracts for the use, purchase,
delivery, movement, or installation of data processing
equipment, software, or services and telecommunications and
interconnect equipment, software, and services; (viii)
contracts for duplicating machines and supplies; (ix)
contracts for the purchase of natural gas when the cost is less
than that offered by a public utility; (x) purchases of
equipment previously owned by some entity other than the
district itself; (xi) contracts for repair, maintenance,
remodeling, renovation, or construction, or a single project
involving an expenditure not to exceed $50,000 and not
involving a change or increase in the size, type, or extent of
an existing facility; (xii) contracts for goods or services
procured from another governmental agency; (xiii) contracts
for goods or services which are economically procurable from
only one source, such as for the purchase of magazines, books,
periodicals, pamphlets and reports, and for utility services
such as water, light, heat, telephone or telegraph; (xiv) where
funds are expended in an emergency and such emergency

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

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public notice at least 10 days before the bid date in a
newspaper published in the district, or if no newspaper is
published in the district, in a newspaper of general
circulation in the area of the district. State master contracts
and certified education purchasing contracts, as defined in
Article 28A of this Code, are not subject to the requirements
of this paragraph.
Under this Section, the acceptance of bids sealed by a
bidder and the opening of these bids at a public bid opening
may be permitted by an electronic process for communicating,
accepting, and opening competitive bids. However, bids for
construction purposes are prohibited from being communicated,
accepted, or opened electronically. An electronic bidding
process must provide for, but is not limited to, the following
safeguards:
(1) On the date and time certain of a bid opening, the
primary person conducting the competitive, sealed,
electronic bid process shall log onto a specified database
using a unique username and password previously assigned to
the bidder to allow access to the bidder's specific bid
project number.
(2) The specified electronic database must be on a
network that (i) is in a secure environment behind a
firewall; (ii) has specific encryption tools; (iii)
maintains specific intrusion detection systems; (iv) has
redundant systems architecture with data storage back-up,

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whether by compact disc or tape; and (v) maintains a
disaster recovery plan.
It is the legislative intent of Public Act 96-841 to maintain
the integrity of the sealed bidding process provided for in
this Section, to further limit any possibility of bid-rigging,
to reduce administrative costs to school districts, and to
effect efficiencies in communications with bidders.
(b) To require, as a condition of any contract for goods
and services, that persons bidding for and awarded a contract
and all affiliates of the person collect and remit Illinois Use
Tax on all sales of tangible personal property into the State
of Illinois in accordance with the provisions of the Illinois
Use Tax Act regardless of whether the person or affiliate is a
"retailer maintaining a place of business within this State" as
defined in Section 2 of the Use Tax Act. For purposes of this
Section, the term "affiliate" means any entity that (1)
directly, indirectly, or constructively controls another
entity, (2) is directly, indirectly, or constructively
controlled by another entity, or (3) is subject to the control
of a common entity. For purposes of this subsection (b), an
entity controls another entity if it owns, directly or
individually, more than 10% of the voting securities of that
entity. As used in this subsection (b), the term "voting
security" means a security that (1) confers upon the holder the
right to vote for the election of members of the board of
directors or similar governing body of the business or (2) is

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convertible into, or entitles the holder to receive upon its
exercise, a security that confers such a right to vote. A
general partnership interest is a voting security.
To require that bids and contracts include a certification
by the bidder or contractor that the bidder or contractor is
not barred from bidding for or entering into a contract under
this Section and that the bidder or contractor acknowledges
that the school board may declare the contract void if the
certification completed pursuant to this subsection (b) is
false.
(b-5) To require all contracts and agreements that pertain
to goods and services and that are intended to generate
additional revenue and other remunerations for the school
district in excess of $1,000, including without limitation
vending machine contracts, sports and other attire, class
rings, and photographic services, to be approved by the school
board. The school board shall file as an attachment to its
annual budget a report, in a form as determined by the State
Board of Education, indicating for the prior year the name of
the vendor, the product or service provided, and the actual net
revenue and non-monetary remuneration from each of the
contracts or agreements. In addition, the report shall indicate
for what purpose the revenue was used and how and to whom the
non-monetary remuneration was distributed.
(c) If the State education purchasing entity creates a
master contract as defined in Article 28A of this Code, then

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the State education purchasing entity shall notify school
districts of the existence of the master contract.
(d) In purchasing supplies, materials, equipment, or
services that are not subject to subsection (c) of this
Section, before a school district solicits bids or awards a
contract, the district may review and consider as a bid under
subsection (a) of this Section certified education purchasing
contracts that are already available through the State
education purchasing entity.
(Source: P.A. 96-392, eff. 1-1-10; 96-841, eff. 12-23-09;
96-1000, eff. 7-2-10; 97-951, eff. 8-13-12.)
Section 99. Effective date. This Act takes effect upon
becoming law.