Illinois General Assembly - Full Text of HB5375
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Full Text of HB5375  102nd General Assembly




State of Illinois
2021 and 2022


Introduced 1/31/2022, 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. In provisions concerning the awarding of contracts by school boards, provides that on January 1 of each year, the State Board of Education shall adjust the amount for which a contract must be awarded to the lowest responsible bidder for inflation, as determined by the Consumer Price Index for All Urban Consumers for all items and rounded to the nearest $100. Provides that the State Board of Education shall publish this information on its official website.

LRB102 24713 RJT 33953 b





HB5375LRB102 24713 RJT 33953 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 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



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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 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)



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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. However, at no time shall a
11cause of action lie against a school board for awarding a pupil
12transportation contract per the standards set forth in this
13subsection (a) unless the cause of action is based on
14fraudulent conduct.
15    All competitive bids for contracts involving an
16expenditure in excess of $25,000 or a lower amount as required
17by board policy must be sealed by the bidder and must be opened
18by a member or employee of the school board at a public bid
19opening at which the contents of the bids must be announced.
20Each bidder must receive at least 3 days' notice of the time
21and place of the bid opening. For purposes of this Section due
22advertisement includes, but is not limited to, at least one
23public notice at least 10 days before the bid date in a
24newspaper published in the district, or if no newspaper is
25published in the district, in a newspaper of general
26circulation in the area of the district. State master



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1contracts and certified education purchasing contracts, as
2defined in Article 28A of this Code, are not subject to the
3requirements of this paragraph.
4    Under this Section, the acceptance of bids sealed by a
5bidder and the opening of these bids at a public bid opening
6may be permitted by an electronic process for communicating,
7accepting, and opening competitive bids. An electronic bidding
8process must provide for, but is not limited to, the following
10        (1) On the date and time certain of a bid opening, the
11    primary person conducting the competitive, sealed,
12    electronic bid process shall log onto a specified database
13    using a unique username and password previously assigned
14    to the bidder to allow access to the bidder's specific bid
15    project number.
16        (2) The specified electronic database must be on a
17    network that (i) is in a secure environment behind a
18    firewall; (ii) has specific encryption tools; (iii)
19    maintains specific intrusion detection systems; (iv) has
20    redundant systems architecture with data storage back-up,
21    whether by compact disc or tape; and (v) maintains a
22    disaster recovery plan.
23It is the legislative intent of Public Act 96-841 to maintain
24the integrity of the sealed bidding process provided for in
25this Section, to further limit any possibility of bid-rigging,
26to reduce administrative costs to school districts, and to



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1effect efficiencies in communications with bidders.
2    On January 1 of each year, the State Board of Education
3shall adjust the amount established in this subsection (a) for
4which a contract must be awarded to the lowest responsible
5bidder for inflation, as determined by the Consumer Price
6Index for All Urban Consumers for all items published by the
7Bureau of Labor Statistics of the United States Department of
8Labor and rounded to the nearest $100. The State Board of
9Education shall publish this information on its official
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
14Use Tax on all sales of tangible personal property into the
15State of Illinois in accordance with the provisions of the
16Illinois Use Tax Act regardless of whether the person or
17affiliate is a "retailer maintaining a place of business
18within this State" as defined in Section 2 of the Use Tax Act.
19For purposes of this Section, the term "affiliate" means any
20entity that (1) directly, indirectly, or constructively
21controls another entity, (2) is directly, indirectly, or
22constructively controlled by another entity, or (3) is subject
23to the control of a common entity. For purposes of this
24subsection (b), an entity controls another entity if it owns,
25directly or individually, more than 10% of the voting
26securities of that entity. As used in this subsection (b), the



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1term "voting security" means a security that (1) confers upon
2the holder the right to vote for the election of members of the
3board of directors or similar governing body of the business
4or (2) is convertible into, or entitles the holder to receive
5upon its exercise, a security that confers such a right to
6vote. A general 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
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
24net revenue and non-monetary remuneration from each of the
25contracts or agreements. In addition, the report shall
26indicate for what purpose the revenue was used and how and to



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1whom the non-monetary remuneration was distributed.
2    (b-10) To prohibit any contract to purchase food with a
3bidder or offeror if the bidder's or offeror's contract terms
4prohibit the school from donating food to food banks,
5including, but not limited to, homeless shelters, food
6pantries, and soup kitchens.
7    (c) If the State education purchasing entity creates a
8master contract as defined in Article 28A of this Code, then
9the State education purchasing entity shall notify school
10districts of the existence of the master contract.
11    (d) In purchasing supplies, materials, equipment, or
12services that are not subject to subsection (c) of this
13Section, before a school district solicits bids or awards a
14contract, the district may review and consider as a bid under
15subsection (a) of this Section certified education purchasing
16contracts that are already available through the State
17education purchasing entity.
18(Source: P.A. 101-570, eff. 8-23-19; 101-632, eff. 6-5-20.)
19    (105 ILCS 5/34-21.3)  (from Ch. 122, par. 34-21.3)
20    Sec. 34-21.3. Contracts. The board shall by record vote
21let all contracts (other than those excepted by Section
2210-20.21 of this The School Code) for supplies, materials,
23work, and contracts with private carriers for transportation
24of pupils, involving an expenditure in excess of $25,000 or a
25lower amount as required by board policy by competitive



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1bidding as provided in Section 10-20.21 of this The School
3    The board may delegate to the general superintendent of
4schools, by resolution, the authority to approve contracts in
5amounts of $25,000 or less.
6    On January 1 of each year, the State Board of Education
7shall adjust the amount established in this Section for which
8a contract must be awarded to the lowest responsible bidder
9for inflation, as determined by the Consumer Price Index for
10All Urban Consumers for all items published by the Bureau of
11Labor Statistics of the United States Department of Labor and
12rounded to the nearest $100. The State Board of Education
13shall publish this information on its official website.
14    For a period of one year from and after the expiration or
15other termination of his or her term of office as a member of
16the board: (i) the former board member shall not be eligible
17for employment nor be employed by the board, a local school
18council, an attendance center, or any other subdivision or
19agent of the board or the school district governed by the
20board, and (ii) neither the board nor the chief purchasing
21officer shall let or delegate authority to let any contract
22for services, employment, or other work to the former board
23member or to any corporation, partnership, association, sole
24proprietorship, or other entity other than publicly traded
25companies from which the former board member receives an
26annual income, dividends, or other compensation in excess of



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1$1,500. Any contract that is entered into by or under a
2delegation of authority from the board or the chief purchasing
3officer shall contain a provision stating that the contract is
4not legally binding on the board if entered into in violation
5of the provisions of this paragraph.
6    In addition, the State Board of Education, in consultation
7with the board, shall (i) review existing conflict of interest
8and disclosure laws or regulations that are applicable to the
9executive officers and governing boards of school districts
10organized under this Article and school districts generally,
11(ii) determine what additional disclosure and conflict of
12interest provisions would enhance the reputation and fiscal
13integrity of the board and the procedure under which contracts
14for goods and services are let, and (iii) develop appropriate
15reporting forms and procedures applicable to the executive
16officers, governing board, and other officials of the school
18(Source: P.A. 95-990, eff. 10-3-08.)