Sen. John G. Mulroe

Filed: 4/13/2012

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 4029

2    AMENDMENT NO. ______. Amend House Bill 4029 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 or contracts with private carriers for
10transportation of pupils involving an expenditure in excess of
11$25,000 or a lower amount as required by board policy to the
12lowest responsible bidder, considering conformity with
13specifications, terms of delivery, quality and serviceability,
14after due advertisement, except the following: (i) contracts
15for the services of individuals possessing a high degree of
16professional skill where the ability or fitness of the

 

 

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1individual plays an important part; (ii) contracts for the
2printing of finance committee reports and departmental
3reports; (iii) contracts for the printing or engraving of
4bonds, tax warrants and other evidences of indebtedness; (iv)
5contracts for the purchase of perishable foods and perishable
6beverages; (v) contracts for materials and work which have been
7awarded to the lowest responsible bidder after due
8advertisement, but due to unforeseen revisions, not the fault
9of the contractor for materials and work, must be revised
10causing expenditures not in excess of 10% of the contract
11price; (vi) contracts for the maintenance or servicing of, or
12provision of repair parts for, equipment which are made with
13the manufacturer or authorized service agent of that equipment
14where the provision of parts, maintenance, or servicing can
15best be performed by the manufacturer or authorized service
16agent; (vii) purchases and contracts for the use, purchase,
17delivery, movement, or installation of data processing
18equipment, software, or services and telecommunications and
19interconnect equipment, software, and services; (viii)
20contracts for duplicating machines and supplies; (ix)
21contracts for the purchase of natural gas when the cost is less
22than that offered by a public utility; (x) purchases of
23equipment previously owned by some entity other than the
24district itself; (xi) contracts for repair, maintenance,
25remodeling, renovation, or construction, or a single project
26involving an expenditure not to exceed $50,000 and not

 

 

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1involving a change or increase in the size, type, or extent of
2an existing facility; (xii) contracts for goods or services
3procured from another governmental agency; (xiii) contracts
4for goods or services which are economically procurable from
5only one source, such as for the purchase of magazines, books,
6periodicals, pamphlets and reports, and for utility services
7such as water, light, heat, telephone or telegraph; (xiv) where
8funds are expended in an emergency and such emergency
9expenditure is approved by 3/4 of the members of the board;
10(xv) State master contracts authorized under Article 28A of
11this Code; and (xvi) contracts providing for the transportation
12of pupils with special needs or disabilities, which contracts
13must be advertised in the same manner as competitive bids and
14awarded by first considering the bidder or bidders most able to
15provide safety and comfort for the pupils with special needs or
16disabilities, stability of service, and any other factors set
17forth in the request for proposal regarding quality of service,
18and then price. However, at no time shall a cause of action lie
19against a school board for awarding a pupil transportation
20contract per the standards set forth in this subsection (a)
21unless the cause of action is based on fraudulent conduct.
22    All competitive bids for contracts involving an
23expenditure in excess of $25,000 or a lower amount as required
24by board policy must be sealed by the bidder and must be opened
25by a member or employee of the school board at a public bid
26opening at which the contents of the bids must be announced.

 

 

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1Each bidder must receive at least 3 days' notice of the time
2and place of the bid opening. For purposes of this Section due
3advertisement includes, but is not limited to, at least one
4public notice at least 10 days before the bid date in a
5newspaper published in the district, or if no newspaper is
6published in the district, in a newspaper of general
7circulation in the area of the district. State master contracts
8and certified education purchasing contracts, as defined in
9Article 28A of this Code, are not subject to the requirements
10of this paragraph.
11    Under this Section, the acceptance of bids sealed by a
12bidder and the opening of these bids at a public bid opening
13may be permitted by an electronic process for communicating,
14accepting, and opening competitive bids. However, bids for
15construction purposes are prohibited from being communicated,
16accepted, or opened electronically. An electronic bidding
17process must provide for, but is not limited to, the following
18safeguards:
19        (1) On the date and time certain of a bid opening, the
20    primary person conducting the competitive, sealed,
21    electronic bid process shall log onto a specified database
22    using a unique username and password previously assigned to
23    the bidder to allow access to the bidder's specific bid
24    project number.
25        (2) The specified electronic database must be on a
26    network that (i) is in a secure environment behind a

 

 

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1    firewall; (ii) has specific encryption tools; (iii)
2    maintains specific intrusion detection systems; (iv) has
3    redundant systems architecture with data storage back-up,
4    whether by compact disc or tape; and (v) maintains a
5    disaster recovery plan.
6It is the legislative intent of Public Act 96-841 to maintain
7the integrity of the sealed bidding process provided for in
8this Section, to further limit any possibility of bid-rigging,
9to reduce administrative costs to school districts, and to
10effect efficiencies in communications with bidders.
11    (b) To require, as a condition of any contract for goods
12and services, that persons bidding for and awarded a contract
13and all affiliates of the person collect and remit Illinois Use
14Tax on all sales of tangible personal property into the State
15of Illinois in accordance with the provisions of the Illinois
16Use Tax Act regardless of whether the person or affiliate is a
17"retailer maintaining a place of business within this State" as
18defined in Section 2 of the Use Tax Act. For purposes of this
19Section, the term "affiliate" means any entity that (1)
20directly, indirectly, or constructively controls another
21entity, (2) is directly, indirectly, or constructively
22controlled by another entity, or (3) is subject to the control
23of a common entity. For purposes of this subsection (b), an
24entity controls another entity if it owns, directly or
25individually, more than 10% of the voting securities of that
26entity. As used in this subsection (b), the term "voting

 

 

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1security" means a security that (1) confers upon the holder the
2right to vote for the election of members of the board of
3directors or similar governing body of the business or (2) is
4convertible into, or entitles the holder to receive upon its
5exercise, a security that confers such a right to vote. A
6general partnership interest is a voting security.
7    To require that bids and contracts include a certification
8by the bidder or contractor that the bidder or contractor is
9not barred from bidding for or entering into a contract under
10this Section and that the bidder or contractor acknowledges
11that the school board may declare the contract void if the
12certification completed pursuant to this subsection (b) is
13false.
14    (b-5) To require all contracts and agreements that pertain
15to goods and services and that are intended to generate
16additional revenue and other remunerations for the school
17district in excess of $1,000, including without limitation
18vending machine contracts, sports and other attire, class
19rings, and photographic services, to be approved by the school
20board. The school board shall file as an attachment to its
21annual budget a report, in a form as determined by the State
22Board of Education, indicating for the prior year the name of
23the vendor, the product or service provided, and the actual net
24revenue and non-monetary remuneration from each of the
25contracts or agreements. In addition, the report shall indicate
26for what purpose the revenue was used and how and to whom the

 

 

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1non-monetary remuneration was distributed.
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. 95-990, eff. 10-3-08; 96-392, eff. 1-1-10;
1496-841, eff. 12-23-09; 96-1000, eff. 7-2-10.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.".