Rep. Jehan A. Gordon-Booth

Filed: 3/19/2013





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2    AMENDMENT NO. ______. Amend House Bill 3232 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 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



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



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1an existing facility; (xii) contracts for goods or services
2procured from another governmental agency; (xiii) contracts
3for goods or services which are economically procurable from
4only one source, such as for the purchase of magazines, books,
5periodicals, pamphlets and reports, and for utility services
6such as water, light, heat, telephone or telegraph; (xiv) where
7funds are expended in an emergency and such emergency
8expenditure is approved by 3/4 of the members of the board;
9(xv) State master contracts authorized under Article 28A of
10this Code; and (xvi) contracts providing for the transportation
11of pupils, which contracts must be advertised in the same
12manner as competitive bids and awarded by first considering the
13bidder or bidders most able to provide safety and comfort for
14the pupils, stability of service, and any other factors set
15forth in the request for proposal regarding quality of service,
16and then price; and (xvii) contracts awarded to a contractor
17located in the county where the school district or any portion
18of the school district is situated who is not the lowest
19bidder, but who is a responsible bidder who qualifies under
20this Section and who has submitted a bid that does not exceed
212% over the lowest responsible bid received by the board.
22However, at no time shall a cause of action lie against a
23school board for awarding a pupil transportation contract per
24the standards set forth in this subsection (a) unless the cause
25of action is based on fraudulent conduct.
26    All competitive bids for contracts involving an



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1expenditure in excess of $25,000 or a lower amount as required
2by board policy must be sealed by the bidder and must be opened
3by a member or employee of the school board at a public bid
4opening at which the contents of the bids must be announced.
5Each bidder must receive at least 3 days' notice of the time
6and place of the bid opening. For purposes of this Section due
7advertisement includes, but is not limited to, at least one
8public notice at least 10 days before the bid date in a
9newspaper published in the district, or if no newspaper is
10published in the district, in a newspaper of general
11circulation in the area of the district. State master contracts
12and certified education purchasing contracts, as defined in
13Article 28A of this Code, are not subject to the requirements
14of this paragraph.
15    Under this Section, the acceptance of bids sealed by a
16bidder and the opening of these bids at a public bid opening
17may be permitted by an electronic process for communicating,
18accepting, and opening competitive bids. However, bids for
19construction purposes are prohibited from being communicated,
20accepted, or opened electronically. An electronic bidding
21process must provide for, but is not limited to, the following
23        (1) On the date and time certain of a bid opening, the
24    primary person conducting the competitive, sealed,
25    electronic bid process shall log onto a specified database
26    using a unique username and password previously assigned to



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



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1of a common entity. For purposes of this subsection (b), an
2entity controls another entity if it owns, directly or
3individually, more than 10% of the voting securities of that
4entity. As used in this subsection (b), the term "voting
5security" means a security that (1) confers upon the holder the
6right to vote for the election of members of the board of
7directors or similar governing body of the business or (2) is
8convertible into, or entitles the holder to receive upon its
9exercise, a security that confers such a right to vote. A
10general partnership interest is a voting security.
11    To require that bids and contracts include a certification
12by the bidder or contractor that the bidder or contractor is
13not barred from bidding for or entering into a contract under
14this Section and that the bidder or contractor acknowledges
15that the school board may declare the contract void if the
16certification completed pursuant to this subsection (b) is
18    (b-5) To require all contracts and agreements that pertain
19to goods and services and that are intended to generate
20additional revenue and other remunerations for the school
21district in excess of $1,000, including without limitation
22vending machine contracts, sports and other attire, class
23rings, and photographic services, to be approved by the school
24board. The school board shall file as an attachment to its
25annual budget a report, in a form as determined by the State
26Board of Education, indicating for the prior year the name of



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1the vendor, the product or service provided, and the actual net
2revenue and non-monetary remuneration from each of the
3contracts or agreements. In addition, the report shall indicate
4for what purpose the revenue was used and how and to whom the
5non-monetary remuneration was distributed.
6    (c) If the State education purchasing entity creates a
7master contract as defined in Article 28A of this Code, then
8the State education purchasing entity shall notify school
9districts of the existence of the master contract.
10    (d) In purchasing supplies, materials, equipment, or
11services that are not subject to subsection (c) of this
12Section, before a school district solicits bids or awards a
13contract, the district may review and consider as a bid under
14subsection (a) of this Section certified education purchasing
15contracts that are already available through the State
16education purchasing entity.
17(Source: P.A. 96-392, eff. 1-1-10; 96-841, eff. 12-23-09;
1896-1000, eff. 7-2-10; 97-951, eff. 8-13-12.)
19    Section 99. Effective date. This Act takes effect upon
20becoming law.".