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| Public Act 102-1101
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| HB4813 Enrolled | LRB102 25424 CMG 34709 b |
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AN ACT concerning education.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The School Code is amended by changing Section |
10-20.21 as follows:
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(105 ILCS 5/10-20.21)
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Sec. 10-20.21. Contracts.
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(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
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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
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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; |
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(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 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
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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 fuel, including |
diesel, gasoline, oil, aviation, natural gas, or propane, |
lubricants, or other petroleum products; |
(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 |
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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;
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(xiv) where funds are expended in an emergency and |
such emergency
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 for goods, services, or management in |
the operation of a school's food service, including a |
school that participates in any of the United States |
Department of Agriculture's child nutrition programs if a |
good faith effort is made on behalf of the school district |
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to give preference to: |
(1) contracts that procure food that promotes the |
health and well-being of students, in compliance with |
United States Department of Agriculture nutrition |
standards for school meals. Contracts should also |
promote the production of scratch made, minimally |
processed foods; |
(2) contracts that give a preference to State or |
regional suppliers that source local food products; |
(3) contracts that give a preference to food |
suppliers that utilize producers that adopt hormone |
and pest management practices recommended by the |
United States Department of Agriculture; |
(4) contracts that give a preference to food |
suppliers that value animal welfare; and |
(5) contracts that increase opportunities for |
businesses owned and operated by minorities, women, or |
persons with disabilities. |
Food supplier data shall be submitted to the school |
district at the time of the bid, to the best of the |
bidder's ability, and updated annually thereafter during |
the term of the contract. The contractor shall submit the |
updated food supplier data. The data required under this |
item (xvii) shall include the name and address of each |
supplier, distributor, processor, and producer involved in |
the provision of the products that the bidder is to |
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supply. |
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
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advertisement includes, but is not limited to, at least one |
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.
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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. An electronic bidding |
process must provide for, but is not limited to, the following |
safeguards: |
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(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, |
whether by compact disc or tape; and (v) maintains a |
disaster recovery plan.
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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. |
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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
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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 convertible
into, or entitles
the holder to receive |
upon its exercise, a security that confers such a right
to
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vote. A
general partnership interest is a voting security.
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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.
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(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 |
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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.
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(b-10) To prohibit any contract to purchase food with a |
bidder or offeror if the bidder's or offeror's contract terms |
prohibit the school from donating food to food banks, |
including, but not limited to, homeless shelters, food |
pantries, and soup kitchens. |
(c) If the State education purchasing entity creates a |
master contract as defined in Article 28A of this Code, then |
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. 101-570, eff. 8-23-19; 101-632, eff. 6-5-20.)
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