Illinois General Assembly - Full Text of HB2421
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Full Text of HB2421  102nd General Assembly




State of Illinois
2021 and 2022


Introduced 2/17/2021, by Rep. Daniel Didech


105 ILCS 5/10-20.21
105 ILCS 5/34-21.3  from Ch. 122, par. 34-21.3

    Amends the School Code. Provides that a school board may award contracts for the purchase of supplies and materials or work involving an expenditure in excess of $50,000 or a lower amount as required by board policy to the lowest responsible and responsive bidder or to the bidder determined to best meet the needs of the board, considering such factors as conformity with specifications, terms of delivery, quality, and serviceability and such other performance criteria determined by board policy and included in the bid documents, and then price (rather than awarding 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 board policy to the lowest responsible bidder, considering conformity with specifications, terms of delivery, quality, and serviceability), after due advertisement. Provides for an exception for contracts for the repair, maintenance, remodeling, renovation, or construction or a single project involving an expenditure not to exceed $100,000 (rather than $50,000) and not involving a change or increase in the size, type, or extent of an existing facility. Makes related changes.

LRB102 12993 CMG 18336 b






HB2421LRB102 12993 CMG 18336 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 Sections
510-20.21 and 34-21.3 as follows:
6    (105 ILCS 5/10-20.21)
7    Sec. 10-20.21. Contracts.
8    (a) To award all contracts for the purchase of supplies
9and materials or work involving an expenditure in excess of
10$50,000 $25,000 or a lower amount as required by board policy
11to the lowest responsible and responsive bidder or to the
12bidder determined to best meet the needs of the board,
13considering such factors as conformity with specifications,
14terms of delivery, quality, and serviceability and such other
15performance criteria determined by board policy and included
16in the bid documents, and then price, after due advertisement,
17except the following: (i) contracts for the services of
18individuals possessing a high degree of professional skill
19where the ability or fitness of the individual plays an
20important part; (ii) contracts for the printing of finance
21committee reports and departmental reports; (iii) contracts
22for the printing or engraving of bonds, tax warrants and other
23evidences of indebtedness; (iv) contracts for the purchase of



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1perishable foods and perishable beverages; (v) contracts for
2materials and work which have been awarded to the lowest
3responsible bidder after due advertisement, but due to
4unforeseen revisions, not the fault of the contractor for
5materials and work, must be revised causing expenditures not
6in excess of 10% of the contract price; (vi) contracts for the
7maintenance or servicing of, or provision of repair parts for,
8equipment which are made with the manufacturer or authorized
9service agent of that equipment where the provision of parts,
10maintenance, or servicing can best be performed by the
11manufacturer or authorized service agent; (vii) purchases and
12contracts for the use, purchase, delivery, movement, or
13installation of data processing equipment, software, or
14services and telecommunications and interconnect equipment,
15software, and services; (viii) contracts for duplicating
16machines and supplies; (ix) contracts for the purchase of
17fuel, including diesel, gasoline, oil, aviation, natural gas,
18or propane, lubricants, or other petroleum products; (x)
19purchases of equipment previously owned by some entity other
20than the district itself; (xi) contracts for repair,
21maintenance, remodeling, renovation, or construction, or a
22single project involving an expenditure not to exceed $100,000
23$50,000 and not involving a change or increase in the size,
24type, or extent of an existing facility; (xii) contracts for
25goods or services procured from another governmental agency;
26(xiii) contracts for goods or services which are economically



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1procurable from only one source, such as for the purchase of
2magazines, books, periodicals, pamphlets and reports, and for
3utility services such as water, light, heat, telephone or
4telegraph; (xiv) where funds are expended in an emergency and
5such emergency expenditure is approved by 3/4 of the members
6of the board; (xv) State master contracts authorized under
7Article 28A of this Code; and (xvi) contracts providing for
8the transportation of pupils, which contracts must be
9advertised in the same manner as competitive bids and awarded
10by first considering the bidder or bidders most able to
11provide safety and comfort for the pupils, stability of
12service, and any other factors set forth in the request for
13proposal regarding quality of service, and then price.
14However, at no time shall a cause of action lie against a
15school board for awarding a pupil transportation contract per
16the standards set forth in this subsection (a) unless the
17cause of action is based on fraudulent conduct.
18    All competitive bids for contracts involving an
19expenditure in excess of $50,000 $25,000 or a lower amount as
20required by board policy must be sealed by the bidder and must
21be opened by a member or employee of the school board at a
22public bid opening at which the contents of the bids must be
23announced. Each bidder must receive at least 3 days' notice of
24the time and place of the bid opening. For purposes of this
25Section due advertisement includes, but is not limited to, at
26least one public notice at least 10 days before the bid date in



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1a newspaper 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



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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.



HB2421- 6 -LRB102 12993 CMG 18336 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.



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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    (105 ILCS 5/34-21.3)  (from Ch. 122, par. 34-21.3)
14    Sec. 34-21.3. Contracts. The board shall by record vote
15let all contracts (other than those excepted by Section
1610-20.21 of The School Code) for supplies, materials, work,
17and contracts with private carriers for transportation of
18pupils, involving an expenditure in excess of $50,000 $25,000
19or a lower amount as required by board policy by competitive
20bidding as provided in Section 10-20.21 of The School Code.
21    The board may delegate to the general superintendent of
22schools, by resolution, the authority to approve contracts in
23amounts of $50,000 $25,000 or less.
24    For a period of one year from and after the expiration or
25other termination of his or her term of office as a member of



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1the board: (i) the former board member shall not be eligible
2for employment nor be employed by the board, a local school
3council, an attendance center, or any other subdivision or
4agent of the board or the school district governed by the
5board, and (ii) neither the board nor the chief purchasing
6officer shall let or delegate authority to let any contract
7for services, employment, or other work to the former board
8member or to any corporation, partnership, association, sole
9proprietorship, or other entity other than publicly traded
10companies from which the former board member receives an
11annual income, dividends, or other compensation in excess of
12$1,500. Any contract that is entered into by or under a
13delegation of authority from the board or the chief purchasing
14officer shall contain a provision stating that the contract is
15not legally binding on the board if entered into in violation
16of the provisions of this paragraph.
17    In addition, the State Board of Education, in consultation
18with the board, shall (i) review existing conflict of interest
19and disclosure laws or regulations that are applicable to the
20executive officers and governing boards of school districts
21organized under this Article and school districts generally,
22(ii) determine what additional disclosure and conflict of
23interest provisions would enhance the reputation and fiscal
24integrity of the board and the procedure under which contracts
25for goods and services are let, and (iii) develop appropriate
26reporting forms and procedures applicable to the executive



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1officers, governing board, and other officials of the school
3(Source: P.A. 95-990, eff. 10-3-08.)