State of Illinois
2013 and 2014


Introduced , by Rep. Jehan A. Gordon-Booth


105 ILCS 5/10-20.21

    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.

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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



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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; (xiii) contracts
22for goods or services which are economically procurable from
23only one source, such as for the purchase of magazines, books,
24periodicals, pamphlets and reports, and for utility services
25such as water, light, heat, telephone or telegraph; (xiv) where
26funds are expended in an emergency and such emergency



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1expenditure is approved by 3/4 of the members of the board;
2(xv) State master contracts authorized under Article 28A of
3this Code; and (xvi) contracts providing for the transportation
4of pupils, which contracts must be advertised in the same
5manner as competitive bids and awarded by first considering the
6bidder or bidders most able to provide safety and comfort for
7the pupils, stability of service, and any other factors set
8forth in the request for proposal regarding quality of service,
9and then price; and (xvii) contracts awarded to a local
10contractor who is not the lowest responsible bidder, but who is
11a qualified bidder who has submitted a bid that does not exceed
122% over the lowest responsible bid received by the board.
13However, at no time shall a cause of action lie against a
14school board for awarding a pupil transportation contract per
15the standards set forth in this subsection (a) unless the cause
16of action is based 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



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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
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.



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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



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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
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    (c) If the State education purchasing entity creates a
24master contract as defined in Article 28A of this Code, then
25the State education purchasing entity shall notify school
26districts of the existence of the master contract.



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1    (d) In purchasing supplies, materials, equipment, or
2services that are not subject to subsection (c) of this
3Section, before a school district solicits bids or awards a
4contract, the district may review and consider as a bid under
5subsection (a) of this Section certified education purchasing
6contracts that are already available through the State
7education purchasing entity.
8(Source: P.A. 96-392, eff. 1-1-10; 96-841, eff. 12-23-09;
996-1000, eff. 7-2-10; 97-951, eff. 8-13-12.)
10    Section 99. Effective date. This Act takes effect upon
11becoming law.