Illinois General Assembly - Full Text of HB3232
Illinois General Assembly

Previous General Assemblies

Full Text of HB3232  98th General Assembly



HB3232 EngrossedLRB098 07648 NHT 37720 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 $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
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 been
22awarded to the lowest responsible bidder after due
23advertisement, but due to unforeseen revisions, not the fault



HB3232 Engrossed- 2 -LRB098 07648 NHT 37720 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 natural gas when the cost is less
14than that offered by a public utility; (x) purchases of
15equipment previously owned by some entity other than the
16district itself; (xi) contracts for repair, maintenance,
17remodeling, renovation, or construction, or a single project
18involving an expenditure not to exceed $50,000 and not
19involving a change or increase in the size, type, or extent of
20an existing facility; (xii) contracts for goods or services
21procured from another governmental agency; (xiii) contracts
22for goods or services which are economically procurable from
23only one source, such as for the purchase of magazines, books,
24periodicals, pamphlets and reports, and for utility services
25such as water, light, heat, telephone or telegraph; (xiv) where
26funds are expended in an emergency and such emergency



HB3232 Engrossed- 3 -LRB098 07648 NHT 37720 b

1expenditure is approved by 3/4 of the members of the board;
2(xv) State master contracts authorized under Article 28A of
3this Code; and (xvi) contracts providing for the transportation
4of pupils, which contracts must be advertised in the same
5manner as competitive bids and awarded by first considering the
6bidder or bidders most able to provide safety and comfort for
7the pupils, stability of service, and any other factors set
8forth in the request for proposal regarding quality of service,
9and then price; and (xvii) contracts awarded to a contractor
10located in the county where the school district or any portion
11of the school district is situated who is not the lowest
12bidder, but who is a responsible bidder who qualifies under
13this Section and who has submitted a bid that does not exceed
142% over the lowest responsible bid received by the board.
15However, at no time shall a cause of action lie against a
16school board for awarding a pupil transportation contract per
17the standards set forth in this subsection (a) unless the cause
18of action is based on fraudulent conduct.
19    All competitive bids for contracts involving an
20expenditure in excess of $25,000 or a lower amount as required
21by board policy must be sealed by the bidder and must be opened
22by a member or employee of the school board at a public bid
23opening at which the contents of the bids must be announced.
24Each bidder must receive at least 3 days' notice of the time
25and place of the bid opening. For purposes of this Section due
26advertisement includes, but is not limited to, at least one



HB3232 Engrossed- 4 -LRB098 07648 NHT 37720 b

1public notice at least 10 days before the bid date in a
2newspaper published in the district, or if no newspaper is
3published in the district, in a newspaper of general
4circulation in the area of the district. State master contracts
5and certified education purchasing contracts, as defined in
6Article 28A of this Code, are not subject to the requirements
7of this paragraph.
8    Under this Section, the acceptance of bids sealed by a
9bidder and the opening of these bids at a public bid opening
10may be permitted by an electronic process for communicating,
11accepting, and opening competitive bids. However, bids for
12construction purposes are prohibited from being communicated,
13accepted, or opened electronically. An electronic bidding
14process must provide for, but is not limited to, the following
16        (1) On the date and time certain of a bid opening, the
17    primary person conducting the competitive, sealed,
18    electronic bid process shall log onto a specified database
19    using a unique username and password previously assigned to
20    the bidder to allow access to the bidder's specific bid
21    project number.
22        (2) The specified electronic database must be on a
23    network that (i) is in a secure environment behind a
24    firewall; (ii) has specific encryption tools; (iii)
25    maintains specific intrusion detection systems; (iv) has
26    redundant systems architecture with data storage back-up,



HB3232 Engrossed- 5 -LRB098 07648 NHT 37720 b

1    whether by compact disc or tape; and (v) maintains a
2    disaster recovery plan.
3It is the legislative intent of Public Act 96-841 to maintain
4the integrity of the sealed bidding process provided for in
5this Section, to further limit any possibility of bid-rigging,
6to reduce administrative costs to school districts, and to
7effect efficiencies in communications with bidders.
8    (b) To require, as a condition of any contract for goods
9and services, that persons bidding for and awarded a contract
10and all affiliates of the person collect and remit Illinois Use
11Tax on all sales of tangible personal property into the State
12of Illinois in accordance with the provisions of the Illinois
13Use Tax Act regardless of whether the person or affiliate is a
14"retailer maintaining a place of business within this State" as
15defined in Section 2 of the Use Tax Act. For purposes of this
16Section, the term "affiliate" means any entity that (1)
17directly, indirectly, or constructively controls another
18entity, (2) is directly, indirectly, or constructively
19controlled by another entity, or (3) is subject to the control
20of a common entity. For purposes of this subsection (b), an
21entity controls another entity if it owns, directly or
22individually, more than 10% of the voting securities of that
23entity. As used in this subsection (b), the term "voting
24security" means a security that (1) confers upon the holder the
25right to vote for the election of members of the board of
26directors or similar governing body of the business or (2) is



HB3232 Engrossed- 6 -LRB098 07648 NHT 37720 b

1convertible into, or entitles the holder to receive upon its
2exercise, a security that confers such a right to vote. A
3general partnership interest is a voting security.
4    To require that bids and contracts include a certification
5by the bidder or contractor that the bidder or contractor is
6not barred from bidding for or entering into a contract under
7this Section and that the bidder or contractor acknowledges
8that the school board may declare the contract void if the
9certification completed pursuant to this subsection (b) is
11    (b-5) To require all contracts and agreements that pertain
12to goods and services and that are intended to generate
13additional revenue and other remunerations for the school
14district in excess of $1,000, including without limitation
15vending machine contracts, sports and other attire, class
16rings, and photographic services, to be approved by the school
17board. The school board shall file as an attachment to its
18annual budget a report, in a form as determined by the State
19Board of Education, indicating for the prior year the name of
20the vendor, the product or service provided, and the actual net
21revenue and non-monetary remuneration from each of the
22contracts or agreements. In addition, the report shall indicate
23for what purpose the revenue was used and how and to whom the
24non-monetary remuneration was distributed.
25    (c) If the State education purchasing entity creates a
26master contract as defined in Article 28A of this Code, then



HB3232 Engrossed- 7 -LRB098 07648 NHT 37720 b

1the State education purchasing entity shall notify school
2districts of the existence of the master contract.
3    (d) In purchasing supplies, materials, equipment, or
4services that are not subject to subsection (c) of this
5Section, before a school district solicits bids or awards a
6contract, the district may review and consider as a bid under
7subsection (a) of this Section certified education purchasing
8contracts that are already available through the State
9education purchasing entity.
10(Source: P.A. 96-392, eff. 1-1-10; 96-841, eff. 12-23-09;
1196-1000, eff. 7-2-10; 97-951, eff. 8-13-12.)
12    Section 99. Effective date. This Act takes effect upon
13becoming law.