Illinois General Assembly - Full Text of HB1782
Illinois General Assembly

Previous General Assemblies

Full Text of HB1782  102nd General Assembly




State of Illinois
2021 and 2022


Introduced 2/17/2021, by Rep. Jehan Gordon-Booth


105 ILCS 5/10-20.21

    Amends the School Code. Exempts from contract bidding requirements 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. Effective immediately.

LRB102 12851 CMG 18194 b






HB1782LRB102 12851 CMG 18194 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
10$25,000 or a lower amount as required by board policy to the
11lowest responsible 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
22been awarded to the lowest responsible bidder after due
23advertisement, but due to unforeseen revisions, not the fault



HB1782- 2 -LRB102 12851 CMG 18194 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 fuel, including diesel,
14gasoline, oil, aviation, natural gas, or propane, lubricants,
15or other petroleum products; (x) purchases of equipment
16previously owned by some entity other than the district
17itself; (xi) contracts for repair, maintenance, remodeling,
18renovation, or construction, or a single project involving an
19expenditure not to exceed $50,000 and not involving a change
20or increase in the size, type, or extent of an existing
21facility; (xii) contracts for goods or services procured from
22another governmental agency; (xiii) contracts for goods or
23services which are economically procurable from only one
24source, such as for the purchase of magazines, books,
25periodicals, pamphlets and reports, and for utility services
26such as water, light, heat, telephone or telegraph; (xiv)



HB1782- 3 -LRB102 12851 CMG 18194 b

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



HB1782- 4 -LRB102 12851 CMG 18194 b

1newspaper published in the district, or if no newspaper is
2published in the district, in a newspaper of general
3circulation in the area of the district. State master
4contracts and certified education purchasing contracts, as
5defined in Article 28A of this Code, are not subject to the
6requirements of this paragraph.
7    Under this Section, the acceptance of bids sealed by a
8bidder and the opening of these bids at a public bid opening
9may be permitted by an electronic process for communicating,
10accepting, and opening competitive bids. An electronic bidding
11process must provide for, but is not limited to, the following
13        (1) On the date and time certain of a bid opening, the
14    primary person conducting the competitive, sealed,
15    electronic bid process shall log onto a specified database
16    using a unique username and password previously assigned
17    to the bidder to allow access to the bidder's specific bid
18    project number.
19        (2) The specified electronic database must be on a
20    network that (i) is in a secure environment behind a
21    firewall; (ii) has specific encryption tools; (iii)
22    maintains specific intrusion detection systems; (iv) has
23    redundant systems architecture with data storage back-up,
24    whether by compact disc or tape; and (v) maintains a
25    disaster recovery plan.
26It is the legislative intent of Public Act 96-841 to maintain



HB1782- 5 -LRB102 12851 CMG 18194 b

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



HB1782- 6 -LRB102 12851 CMG 18194 b

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



HB1782- 7 -LRB102 12851 CMG 18194 b

1    (c) If the State education purchasing entity creates a
2master contract as defined in Article 28A of this Code, then
3the State education purchasing entity shall notify school
4districts of the existence of the master contract.
5    (d) In purchasing supplies, materials, equipment, or
6services that are not subject to subsection (c) of this
7Section, before a school district solicits bids or awards a
8contract, the district may review and consider as a bid under
9subsection (a) of this Section certified education purchasing
10contracts that are already available through the State
11education purchasing entity.
12(Source: P.A. 101-570, eff. 8-23-19; 101-632, eff. 6-5-20.)
13    Section 99. Effective date. This Act takes effect upon
14becoming law.