SB3000sam003 93RD GENERAL ASSEMBLY

Sen. Miguel del Valle

Filed: 5/13/2004

09300SB3000sam003 LRB093 19896 RLC 51028 a

AMENDMENT TO SENATE BILL 3000

AMENDMENT NO. ______. Amend Senate Bill 3000 by replacing the title with the following:

"AN ACT concerning education, which may be referred to as the Education Reform and Accountability Act of 2004."; and

by replacing the everything after the enacting clause with the following:

"Section 1. Short title. This Act may be cited as the School Employee Benefit Act.

Section 5. Purpose. The purpose of this Act is to require the Department of Central Management Services to establish and administer a school employee benefit program that will enable eligible school employees access to affordable health care.

Section 10. Definitions.

"Annuitant" means a retired school district employee entitled to receive retirement benefits, as defined by the school district.

"Department" means the Department of Central Management Services.

"Dependent" means a school district employee's dependent as defined by the school district.

"Director" means the Director of Central Management Services.

"Employee" means a school district employee who is entitled to benefits as defined by the school district.

"Rules" includes rules adopted and forms prescribed by the Department.

"School district" means a public school district in this State.

Section 15. Prescription drug benefits; contract.

(a) The Director shall, by contract, self-insurance, or otherwise, make available a voluntary program of prescription drug benefits for school districts under Section 15 of this Act. The contract or other arrangement for the provision of the prescription drug benefits shall be on terms deemed by the Director to be in the best interest of the State of Illinois and school districts based on criteria set by the Department, which must include without limitation administrative cost, service capabilities of the carrier or other contractors, and premiums, fees, or charges as related to the costs of the benefits.

(b) The term of a contract under this Section may not extend beyond 5 fiscal years. The Director may exercise renewal options of the same contract for up to a period of 5 years. Any increases in premiums, fees, or charges requested by a contractor whose contract may be renewed pursuant to a renewal option contained in the contract must be justified on the basis of (1) audited experience data, (2) increases in the costs of prescription drug coverage provided under the contract, (3) contractor performance, (4) increases in contractor responsibilities, or (5) any combination of these bases.

(c) A contractor shall agree to abide by all requirements and rules of the prescription drug benefit program, to submit such information and data as may from time to time be deemed necessary by the Director for effective administration of the program, and to fully cooperate in any audit.

Section 20. Prescription drug benefits; program.

(a) Beginning July 1, 2005, the Department shall be responsible for administering the prescription drug benefit program established under this Act for employees, annuitants, and dependents on a non-insured basis.

(b) For each program year, the Department shall set a date by which school districts must notify the Department of their election to participate in the prescription drug benefit program. The Department shall provide notification of the election date to school districts at least 45 days prior to the election date.

(c) Any school district may apply to the Director to have employees, annuitants, and dependents be provided a prescription drug benefit program under this Act. To participate, a school district must agree to enroll all of its employees. A participating school district is not required to enroll a full-time employee who has waived coverage under the district's health plan.

(d) The Director shall determine the insurance rates and premiums for those employees, annuitants, and dependents participating in the prescription drug benefit program. Rates and premiums may be based in part on age and eligibility for federal Medicare coverage.

A school district must remit the entire cost of providing prescription drug coverage under this Section.

(e) All revenues arising from the administration of the prescription drug benefit program shall be deposited into general revenue funds.

(f) It is the intention of the General Assembly that the prescription drug benefit program be maintained on an on-going, affordable basis. The prescription drug benefit program may be changed by the State and is not intended to be a pension or retirement benefit subject to protection under Section 5 of Article XIII of the Illinois Constitution.

Section 85. The State Finance Act is amended by changing Section 13.5 as follows:

(30 ILCS 105/13.5)

Sec. 13.5. Appropriations for higher education.

(a) State appropriations to the State Board of Education, the Board of Trustees of Southern Illinois University, the Board of Trustees of the University of Illinois, the Board of Trustees of Chicago State University, the Board of Trustees of Eastern Illinois University, the Board of Trustees of Illinois State University, the Board of Trustees of Governors State University, the Board of Trustees of Northeastern Illinois University, the Board of Trustees of Northern Illinois University, and the Board of Trustees of Western Illinois University for operations shall identify the amounts appropriated for personal services, State contributions to social security for Medicare, contractual services, travel, commodities, equipment, operation of automotive equipment, telecommunications, awards and grants, and permanent improvements.

(b) Within 120 days after the conclusion of each fiscal year, each State-supported institution of higher learning must provide, through the Illinois Board of Higher Education, a financial report to the Governor and General Assembly documenting the institution's revenues and expenditures of funds for that fiscal year ending June 30 for all funds.

(Source: P.A. 93-229, eff. 7-22-03.)

Section 90. The School Code is amended by changing Sections 1A-1, 1A-2.1, 1A-4, 3-15.1, and 10-20.21 and adding Section 2-3.135 and Article 28A as follows:

(105 ILCS 5/1A-1) (from Ch. 122, par. 1A-1)

Sec. 1A-1. Members and terms.

(a) The term of each member of the State Board of Education who is in office on June 30, 2004 the effective date of this amendatory Act of 1996 shall terminate on July 1, 2004 January 1, 1997 or when all of the new members initially to be appointed under this amendatory Act of the 93rd General Assembly of 1996 are appointed by the Governor as provided in subsection (b), whichever last occurs.

(b) Beginning on July 1, 2004 January 1, 1997 or when all of the new members initially to be appointed under this subsection are appointed by the Governor, whichever last occurs, and thereafter, the State Board of Education shall consist of 9 members, who shall be appointed by the Governor with the advice and consent of the Senate from a pattern of regional representation as follows: 2 appointees shall be selected from among those counties of the State other than Cook County and the 5 counties contiguous to Cook County; 2 appointees shall be selected from Cook County, one of whom shall be a resident of the City of Chicago and one of whom shall be a resident of that part of Cook County which lies outside the city limits of Chicago; 2 appointees shall be selected from among the 5 counties of the State that are contiguous to Cook County; and 3 members shall be selected as members-at-large. At no time may more than 5 members of the Board be from one political party. Party membership is defined as having voted in the primary of the party in the last primary before appointment. Five of the The 9 members initially appointed pursuant to this amendatory Act of the 93rd General Assembly 1996 shall draw lots to determine 3 of their number who shall serve until the second Wednesday of January, 2007, as designated by the Governor, and the other 4 shall serve until the second Wednesday of January, 2009, as designated by the Governor 2003, 3 of their number who shall serve until the second Wednesday of January, 2001, and 3 of their number who shall serve until the second Wednesday of January, 1999. Upon expiration of the terms of the members initially appointed under this amendatory Act of 1996, their respective successors shall be appointed for terms of 4 6 years, from the second Wednesday in January of each odd numbered year and until their respective successors are appointed and qualified. Vacancies in terms shall be filled by appointment by the Governor with the advice and consent of the Senate for the extent of the unexpired term. If a vacancy in membership occurs at a time when the Senate is not in session, the Governor shall make a temporary appointment until the next meeting of the Senate, when the Governor shall appoint a person to fill that membership for the remainder of its term. If the Senate is not in session when appointments for a full term are made, the appointments shall be made as in the case of vacancies.

(Source: P.A. 89-610, eff. 8-6-96.)

(105 ILCS 5/1A-2.1) (from Ch. 122, par. 1A-2.1)

Sec. 1A-2.1. Vacancies. A vacancy exists on the State Board of Education when one or more of the following events occur:

1. A a member dies. ;

2. A a member files a written resignation with the Governor. ;

3. A a member is adjudicated to be a person under legal disability under the Probate Act of 1975, as amended, or a person subject to involuntary admission under the Mental Health and Developmental Disabilities Code. ;

4. A a member ceases to be a resident of the region judicial district from which he or she was appointed. ;

5. A a member is convicted of an infamous crime, or of any offense involving a violation of his or her duties under this Code. Act;

6. A a member fails to maintain the qualifications stated in Section 1A-2 of this Code Act.

7. A member is removed at the discretion of the Governor.

(Source: P.A. 83-706.)

(105 ILCS 5/1A-4) (from Ch. 122, par. 1A-4)

Sec. 1A-4. Powers and duties of the Board.

A. Upon the appointment of new State Board of Education Board members as provided in subsection (b) of Section 1A-1 and every 2 years thereafter, the chairperson of the Board shall be selected by the Governor, with the advice and consent of the Senate, from the membership of the Board to serve as chairperson for 2 years.

Five members of the State Board of Education shall constitute a quorum. A majority vote of appointed members is required to approve any action.

B. The State Board of Education Board shall determine the qualifications of and appoint a chief education officer, to be known as the State Superintendent of Education, who may be proposed by the Governor and who shall serve at the pleasure of the Board and pursuant to a performance-based contract linked to statewide student performance and academic improvement within Illinois schools. No performance-based contract issued for the employment of the State Superintendent of Education shall be for a term longer than 2 3 years and no contract shall be extended or renewed prior to its scheduled expiration unless the performance and improvement goals contained in the contract have been met. The State Superintendent of Education shall not serve as a member of the State Board of Education, but . The Board shall set the compensation of the State Superintendent of Education who shall serve as the Board's chief executive officer. The State Superintendent of Education shall receive an annual salary as set by the State Board of Education from time to time or as set by the Compensation Review Board, whichever is greater. The State Board of Education shall also establish the duties, powers and responsibilities of the State Superintendent in accordance with this Code, which shall be included in the State Superintendent's performance-based contract along with the goals and indicators of student performance and academic improvement used to measure the performance and effectiveness of the State Superintendent. The State Board of Education may delegate to the State Superintendent of Education the authority to act on the Board's behalf, provided such delegation is made pursuant to adopted board policy or the powers delegated are ministerial in nature.

The State Board may not delegate authority under this Section to the State Superintendent to (1) nonrecognize school districts, (2) withhold State payments as a penalty, or (3) make final decisions under the contested case provisions of the Illinois Administrative Procedure Act unless otherwise provided by law.

C. The powers and duties of the State Board of Education shall encompass all duties delegated to the Office of Superintendent of Public Instruction on January 12, 1975, except as the law providing for such powers and duties is thereafter amended, and such other powers and duties as the General Assembly shall designate. The Board shall be responsible for the educational policies and guidelines for public schools, pre-school through grade 12 and Vocational Education in the State of Illinois. The Board shall analyze the present and future aims, needs, and requirements of education in the State of Illinois and recommend to the General Assembly the powers which should be exercised by the Board. The Board shall recommend the passage and the legislation necessary to determine the appropriate relationship between the Board and local boards of education and the various State agencies and shall recommend desirable modifications in the laws which affect schools.

D. Two members of the State Board of Education shall be appointed by the chairperson to serve on a standing joint Education Committee, 2 others shall be appointed from the Board of Higher Education, 2 others shall be appointed by the chairperson of the Illinois Community College Board, and 2 others shall be appointed by the chairperson of the Human Resource Investment Council. The Committee shall be responsible for making recommendations concerning the submission of any workforce development plan or workforce training program required by federal law or under any block grant authority. The Committee will be responsible for developing policy on matters of mutual concern to elementary, secondary and higher education such as Occupational and Career Education, Teacher Preparation and Certification, Educational Finance, Articulation between Elementary, Secondary and Higher Education and Research and Planning. The joint Education Committee shall meet at least quarterly and submit an annual report of its findings, conclusions, and recommendations to the State Board of Education, the Board of Higher Education, the Illinois Community College Board, the Human Resource Investment Council, the Governor, and the General Assembly. All meetings of this Committee shall be official meetings for reimbursement under this Act.

E. Five members of the Board shall constitute a quorum. A majority vote of the members appointed, confirmed and serving on the Board is required to approve any action. The State Board of Education shall prepare and submit to the General Assembly and the Governor on or before January 14, 1976 and annually thereafter a report or reports of its findings and recommendations. Such annual report shall contain a separate section which provides a critique and analysis of the status of education in Illinois and which identifies its specific problems and recommends express solutions therefor. Such annual report also shall contain the following information for the preceding year ending on June 30: each act or omission of a school district of which the State Board of Education has knowledge as a consequence of scheduled, approved visits and which constituted a failure by the district to comply with applicable State or federal laws or regulations relating to public education, the name of such district, the date or dates on which the State Board of Education notified the school district of such act or omission, and what action, if any, the school district took with respect thereto after being notified thereof by the State Board of Education. The report shall also include the statewide high school dropout rate by grade level, sex and race and the annual student dropout rate of and the number of students who graduate from, transfer from or otherwise leave bilingual programs. The Auditor General shall annually perform a compliance audit of the State Board of Education's performance of the reporting duty imposed by this amendatory Act of 1986. A regular system of communication with other directly related State agencies shall be implemented.

The requirement for reporting to the General Assembly shall be satisfied by filing copies of the report with the Speaker, the Minority Leader and the Clerk of the House of Representatives and the President, the Minority Leader and the Secretary of the Senate and the Legislative Council, as required by Section 3.1 of the General Assembly Organization Act, and filing such additional copies with the State Government Report Distribution Center for the General Assembly as is required under paragraph (t) of Section 7 of the State Library Act.

(Source: P.A. 89-430, eff. 12-15-95; 89-610, eff. 8-6-96; 89-698, eff. 1-14-97; 90-548, eff. 1-1-98.)

(105 ILCS 5/2-3.135 new)

Sec. 2-3.135. Shared service centers. The State Board of Education may create shared service centers.

(105 ILCS 5/3-15.1) (from Ch. 122, par. 3-15.1)

Sec. 3-15.1. Reports. To require the appointed school treasurer in Class II counties, in each school district which forms a part of a Class II county school unit but which is not subject to the jurisdiction of the trustees of schools of any township in which such district is located, and in each school district of the Class I counties to prepare and forward to his office on or before October 15, annually, and at such other times as may be required by him or by the State Board of Education a statement exhibiting the financial condition of the school for the preceding year commencing on July 1 and ending June 30.

In Class I county school units, and in each school district which forms a part of a Class II county school unit but which is not subject to the jurisdiction of the trustees of schools of any township in which such school district is located, the statement shall in the case of districts on the accrual basis show the assets, liabilities and fund balance of the funds as of the end of the fiscal year. The statement shall show the operation of the funds for the fiscal year with a reconciliation and analysis of changes in the funds at the end of the period. For districts on a cash basis the statement shall show the receipts and disbursements by funds including the source of receipts and purpose for which the disbursements were made together with the balance at the end of the fiscal year. Each school district that is the administrator of a joint agreement shall cause an Annual Financial Statement to be submitted on forms prescribed by the State Board of Education exhibiting the financial condition of the program established pursuant to the joint agreement, for the fiscal year ending on the immediately preceding June 30.

The regional superintendent shall send all required reports to the State Board of Education on or before November 15, annually.

For all districts the statements shall show bonded debt, tax warrants, taxes received and receivable by funds and such other information as may be required by the State Board of Education. The statement (i) shall provide education purchasing information in a manner determined by the State Board and (ii) shall provide a certified statement from a certified public accountant on whether or not a school district is complying with the requirements and intent of Section 10-20.21 of this Code. Any district from which such report is not so received when required shall have its portion of the distributive fund withheld for the next ensuing year until such report is filed.

If a district is divided by a county line or lines the foregoing required statement shall be forwarded to the regional superintendent of schools having supervision and control of the district.

(Source: P.A. 86-1441; 87-473.)

(105 ILCS 5/10-20.21) (from Ch. 122, par. 10-20.21)

Sec. 10-20.21. Contracts.

(a) To award all contracts for purchase of supplies, materials or work or contracts with private carriers for transportation of pupils involving an expenditure in excess of $10,000 to the lowest responsible bidder, considering conformity with specifications, terms of delivery, quality and serviceability, after due advertisement, except the following: (i) contracts for the services of individuals possessing a high degree of professional skill where the ability or fitness of the individual plays an important part; (ii) contracts for the printing of finance committee reports and departmental reports; (iii) contracts for the printing or engraving of bonds, tax warrants and other evidences of indebtedness; (iv) contracts for the purchase of perishable foods and perishable beverages; (v) contracts for materials and work which have been awarded to the lowest responsible bidder after due advertisement, but due to unforeseen revisions, not the fault of the contractor for materials and work, must be revised causing expenditures not in excess of 10% of the contract price; (vi) contracts for the maintenance or servicing of, or provision of repair parts for, equipment which are made with the manufacturer or authorized service agent of that equipment where the provision of parts, maintenance, or servicing can best be performed by the manufacturer or authorized service agent; (vii) purchases and contracts for the use, purchase, delivery, movement, or installation of data processing equipment, software, or services and telecommunications and interconnect equipment, software, and services; (viii) contracts for duplicating machines and supplies; (ix) contracts for the purchase of natural gas when the cost is less than that offered by a public utility; (x) purchases of equipment previously owned by some entity other than the district itself; (xi) contracts for repair, maintenance, remodeling, renovation, or construction, or a single project involving an expenditure not to exceed $20,000 and not involving a change or increase in the size, type, or extent of an existing facility; (xii) contracts for goods or services procured from another governmental agency; (xiii) contracts for goods or services which are economically procurable from only one source, such as for the purchase of magazines, books, periodicals, pamphlets and reports, and for utility services such as water, light, heat, telephone or telegraph; and (xiv) where funds are expended in an emergency and such emergency expenditure is approved by 3/4 of the members of the board.

All competitive bids for contracts involving an expenditure in excess of $10,000 must be sealed by the bidder and must be opened by a member or employee of the school board at a public bid opening at which the contents of the bids must be announced. Each bidder must receive at least 3 days' notice of the time and place of the bid opening. For purposes of this Section due advertisement includes, but is not limited to, at least one public notice at least 10 days before the bid date in a newspaper published in the district, or if no newspaper is published in the district, in a newspaper of general circulation in the area of the district. State master contracts and certified education purchasing contracts, as defined in Article 28A of this Code, are not subject to the requirements of this paragraph.

(b) To require, as a condition of any contract for goods and services, that persons bidding for and awarded a contract and all affiliates of the person collect and remit Illinois Use Tax on all sales of tangible personal property into the State of Illinois in accordance with the provisions of the Illinois Use Tax Act regardless of whether the person or affiliate is a "retailer maintaining a place of business within this State" as defined in Section 2 of the Use Tax Act. For purposes of this Section, the term "affiliate" means any entity that (1) directly, indirectly, or constructively controls another entity, (2) is directly, indirectly, or constructively controlled by another entity, or (3) is subject to the control of a common entity. For purposes of this subsection (b), an entity controls another entity if it owns, directly or individually, more than 10% of the voting securities of that entity. As used in this subsection (b), the term "voting security" means a security that (1) confers upon the holder the right to vote for the election of members of the board of directors or similar governing body of the business or (2) is convertible into, or entitles the holder to receive upon its exercise, a security that confers such a right to vote. A general partnership interest is a voting security.

To require that bids and contracts include a certification by the bidder or contractor that the bidder or contractor is not barred from bidding for or entering into a contract under this Section and that the bidder or contractor acknowledges that the school board may declare the contract void if the certification completed pursuant to this subsection (b) is false.

(c) If the State education purchasing entity creates a master contract as defined in Article 28A of this Code, then the State education purchasing entity shall notify school districts of the existence of the master contract. The State purchasing entity shall also notify school districts of the date by which the school districts must elect whether or not to participate in the master contract, leaving adequate time for the school district to solicit competing bids. The State purchasing entity shall send to school districts no more than 4 notifications of master contracts per year, although each notification may include more than one master contract. Once a school district has received notice of the existence of a master contract, the school district shall do one of the following:

(1) Publicly elect to participate in the master contract without engaging in the competitive bidding required by subsections (a) and (b) of this Section.

(2) Publicly elect to not participate in the master contract on the ground that the supplies, materials, equipment, or services available in the master contract are not needed.

(3) Solicit bids in accordance with subsections (a) and (b) of this Section, and then, after bids have been received, vote at a public meeting to (A) participate in the master contract, (B) award a contract to a bidding vendor who agrees to provide the supplies, materials, equipment, or services on the same terms as the master contract, (C) award a contract to a bidding vendor on terms more favorable than those in the master contract, or (D) not award a contract.

(d) In purchasing supplies, materials, equipment, or services that are not subject to subsection (c) of this Section, before a school district solicits bids or awards a contract, the district must review and consider as a bid under subsection (a) of this Section certified education purchasing contracts that are already available through the State education purchasing entity. If a certified education purchasing contract is responsive to a request for bids, then the school district must state publicly its reasons for not participating in the certified education purchasing contract.

(e) A school district may annually adopt a resolution establishing a local preference or a preference for businesses certified under the Business Enterprise for Minorities, Females, and Persons with Disabilities Act or both for any contract entered into pursuant to subsections (c) and (d) of this Section. The resolution must be adopted within 30 days after the commencement of each fiscal year. The resolution shall provide for specific criteria by which a preference may be given to a bidder whose principal place of business is located within the boundaries of the school district or for certified businesses owned by females, minorities, or persons with disabilities located within the State or both. If a contract is awarded pursuant to such a preference, then the school district must adopt a resolution stating that it approves the use of the preference in awarding the contract. A school district may not adopt a resolution stating that any specific number or dollar amount of contracts must be awarded through a preference authorized by this Section. No preference authorized by this Section may result in the awarding of a contract to a bidder whose bid is 10% or more greater than the price specified in a master contract or certified education purchasing contract. The school district is solely responsible for ensuring that any preference granted pursuant to this Section complies with all of the requirements of the United States Constitution and the Illinois Constitution.

(f) If a school district does not comply with the requirements and intent of subsections (c) and (d) of this Section, then the school district is subject to a penalty as determined by the State Board of Education.

(Source: P.A. 93-25, eff. 6-20-03.)

(105 ILCS 5/Art. 28A heading new)

ARTICLE 28A. Education Purchasing Program.

(105 ILCS 5/28A-5 new)

Sec. 28A-5. Definitions. In this Article:

"State Board" means the State Board of Education.

"Education purchasing contract" means a contract negotiated by the State Board, a local, State, or federal governmental entity, or a not-for-profit, for-profit, or cooperative entity that is certified under Section 28A-15 of this Code and made available to school districts.

"Master contract" means a contract designated as a statewide education master contract under Section 28A-15 of this Code.

"Program" means the education purchasing program created under this Article.

(105 ILCS 5/28A-10 new)

Sec. 28A-10. Program created. The State Board shall create an education purchasing program. Under the program, the State Board shall designate itself or another entity to act as a State education purchasing entity to form and designate statewide education master contracts and to certify education purchasing contracts for key categories identified and defined by the State Board. The State education purchasing entity shall provide master contract and education purchasing contract information and pricing to school districts.

(105 ILCS 5/28A-15 new)

Sec. 28A-15. Powers of State education purchasing entity. The State education purchasing entity shall have all of the following powers:

(1) To select vendors and form contracts in accordance with the State's purchasing laws.

(2) To designate a contract as a statewide education master contract for purposes of subsection (c) of Section 10-20.21 of this Code.

(3) To certify an education purchasing contract, provided that the contract was entered into according to procedures and conditions that conform to applicable State purchasing laws, for purposes of subsection (d) of Section 10-20.21 of this Code.

(4) To facilitate the inter-district sale or transfer of excess inventory or equipment.

(5) To select and subsidize e-procurement tools to be implemented within school districts.

(105 ILCS 5/28A-20 new)

Sec. 28A-20. Rules. The State Board or other State agency designated by the State Board may adopt rules to implement, administer, and enforce the program.

Section 97. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.

Section 99. Effective date. This Act takes effect July 1, 2004, except that the provisions changing Sections 3-15.1 and 10-20.21 of the School Code and adding Article 28A of the School Code take effect on July 1, 2005.".