100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB2788

 

Introduced , by Rep. Fred Crespo

 

SYNOPSIS AS INTRODUCED:
 
105 ILCS 5/10-20.21

    Amends the School Code. With respect to the requirement that all contracts for the purchase of supplies and materials or work involving an expenditure in excess of $25,000 or a lower amount as required by school board policy be awarded to the lowest responsible bidder, exempts contracts for goods or services procured through a cooperative organized in any state in the United States of America or the District of Columbia that awards contracts by a competitive process and whose membership is limited to governmental agencies. Effective immediately.


LRB100 08378 NHT 18487 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2788LRB100 08378 NHT 18487 b

1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
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
17printing of finance committee reports and departmental
18reports; (iii) contracts for the printing or engraving of
19bonds, tax warrants and other evidences of indebtedness; (iv)
20contracts for the purchase of perishable foods and perishable
21beverages; (v) contracts for materials and work which have been
22awarded to the lowest responsible bidder after due
23advertisement, but due to unforeseen revisions, not the fault

 

 

HB2788- 2 -LRB100 08378 NHT 18487 b

1of the contractor for materials and work, must be revised
2causing expenditures not in excess of 10% of the contract
3price; (vi) contracts for the maintenance or servicing of, or
4provision of repair parts for, equipment which are made with
5the manufacturer or authorized service agent of that equipment
6where the provision of parts, maintenance, or servicing can
7best be performed by the manufacturer or authorized service
8agent; (vii) purchases and contracts for the use, purchase,
9delivery, movement, or installation of data processing
10equipment, software, or services and telecommunications and
11interconnect equipment, software, and services; (viii)
12contracts for duplicating machines and supplies; (ix)
13contracts for the purchase of natural gas when the cost is less
14than that offered by a public utility; (x) purchases of
15equipment previously owned by some entity other than the
16district itself; (xi) contracts for repair, maintenance,
17remodeling, renovation, or construction, or a single project
18involving an expenditure not to exceed $50,000 and not
19involving a change or increase in the size, type, or extent of
20an existing facility; (xii) contracts for goods or services
21procured from another governmental agency or through a
22cooperative organized in any state in the United States of
23America or the District of Columbia that awards contracts by a
24competitive process and whose membership is limited to
25governmental agencies; (xiii) contracts for goods or services
26which are economically procurable from only one source, such as

 

 

HB2788- 3 -LRB100 08378 NHT 18487 b

1for the purchase of magazines, books, periodicals, pamphlets
2and reports, and for utility services such as water, light,
3heat, telephone or telegraph; (xiv) where funds are expended in
4an emergency and such emergency expenditure is approved by 3/4
5of the members of the board; (xv) State master contracts
6authorized under Article 28A of this Code; and (xvi) contracts
7providing for the transportation of pupils, which contracts
8must be advertised in the same manner as competitive bids and
9awarded by first considering the bidder or bidders most able to
10provide safety and comfort for the pupils, stability of
11service, and any other factors set forth in the request for
12proposal regarding quality of service, and then price. However,
13at no time shall a cause of action lie against a school board
14for awarding a pupil transportation contract per the standards
15set forth in this subsection (a) unless the cause of action is
16based on fraudulent conduct.
17    All competitive bids for contracts involving an
18expenditure in excess of $25,000 or a lower amount as required
19by board policy must be sealed by the bidder and must be opened
20by a member or employee of the school board at a public bid
21opening at which the contents of the bids must be announced.
22Each bidder must receive at least 3 days' notice of the time
23and place of the bid opening. For purposes of this Section due
24advertisement includes, but is not limited to, at least one
25public notice at least 10 days before the bid date in a
26newspaper published in the district, or if no newspaper is

 

 

HB2788- 4 -LRB100 08378 NHT 18487 b

1published in the district, in a newspaper of general
2circulation in the area of the district. State master contracts
3and certified education purchasing contracts, as defined in
4Article 28A of this Code, are not subject to the requirements
5of this paragraph.
6    Under this Section, the acceptance of bids sealed by a
7bidder and the opening of these bids at a public bid opening
8may be permitted by an electronic process for communicating,
9accepting, and opening competitive bids. However, bids for
10construction purposes are prohibited from being communicated,
11accepted, or opened electronically. An electronic bidding
12process must provide for, but is not limited to, the following
13safeguards:
14        (1) On the date and time certain of a bid opening, the
15    primary person conducting the competitive, sealed,
16    electronic bid process shall log onto a specified database
17    using a unique username and password previously assigned to
18    the bidder to allow access to the bidder's specific bid
19    project number.
20        (2) The specified electronic database must be on a
21    network that (i) is in a secure environment behind a
22    firewall; (ii) has specific encryption tools; (iii)
23    maintains specific intrusion detection systems; (iv) has
24    redundant systems architecture with data storage back-up,
25    whether by compact disc or tape; and (v) maintains a
26    disaster recovery plan.

 

 

HB2788- 5 -LRB100 08378 NHT 18487 b

1It is the legislative intent of Public Act 96-841 to maintain
2the integrity of the sealed bidding process provided for in
3this Section, to further limit any possibility of bid-rigging,
4to reduce administrative costs to school districts, and to
5effect efficiencies in communications with bidders.
6    (b) To require, as a condition of any contract for goods
7and services, that persons bidding for and awarded a contract
8and all affiliates of the person collect and remit Illinois Use
9Tax on all sales of tangible personal property into the State
10of Illinois in accordance with the provisions of the Illinois
11Use Tax Act regardless of whether the person or affiliate is a
12"retailer maintaining a place of business within this State" as
13defined in Section 2 of the Use Tax Act. For purposes of this
14Section, the term "affiliate" means any entity that (1)
15directly, indirectly, or constructively controls another
16entity, (2) is directly, indirectly, or constructively
17controlled by another entity, or (3) is subject to the control
18of a common entity. For purposes of this subsection (b), an
19entity controls another entity if it owns, directly or
20individually, more than 10% of the voting securities of that
21entity. As used in this subsection (b), the term "voting
22security" means a security that (1) confers upon the holder the
23right to vote for the election of members of the board of
24directors or similar governing body of the business or (2) is
25convertible into, or entitles the holder to receive upon its
26exercise, a security that confers such a right to vote. A

 

 

HB2788- 6 -LRB100 08378 NHT 18487 b

1general partnership interest is a voting security.
2    To require that bids and contracts include a certification
3by the bidder or contractor that the bidder or contractor is
4not barred from bidding for or entering into a contract under
5this Section and that the bidder or contractor acknowledges
6that the school board may declare the contract void if the
7certification completed pursuant to this subsection (b) is
8false.
9    (b-5) To require all contracts and agreements that pertain
10to goods and services and that are intended to generate
11additional revenue and other remunerations for the school
12district in excess of $1,000, including without limitation
13vending machine contracts, sports and other attire, class
14rings, and photographic services, to be approved by the school
15board. The school board shall file as an attachment to its
16annual budget a report, in a form as determined by the State
17Board of Education, indicating for the prior year the name of
18the vendor, the product or service provided, and the actual net
19revenue and non-monetary remuneration from each of the
20contracts or agreements. In addition, the report shall indicate
21for what purpose the revenue was used and how and to whom the
22non-monetary remuneration was distributed.
23    (b-10) To prohibit any contract to purchase food with a
24bidder or offeror if the bidder's or offeror's contract terms
25prohibit the school from donating food to food banks,
26including, but not limited to, homeless shelters, food

 

 

HB2788- 7 -LRB100 08378 NHT 18487 b

1pantries, and soup kitchens.
2    (c) If the State education purchasing entity creates a
3master contract as defined in Article 28A of this Code, then
4the State education purchasing entity shall notify school
5districts of the existence of the master contract.
6    (d) In purchasing supplies, materials, equipment, or
7services that are not subject to subsection (c) of this
8Section, before a school district solicits bids or awards a
9contract, the district may review and consider as a bid under
10subsection (a) of this Section certified education purchasing
11contracts that are already available through the State
12education purchasing entity.
13(Source: P.A. 99-552, eff. 7-15-16.)
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.