Full Text of HB4813 102nd General Assembly
HB4813 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 HB4813 Introduced 1/27/2022, by Rep. Jehan Gordon-Booth SYNOPSIS AS INTRODUCED: |
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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.
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| | A BILL FOR |
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| 1 | | AN ACT concerning education.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The School Code is amended by changing Section | 5 | | 10-20.21 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 | 9 | | materials or work involving an expenditure in excess of | 10 | | $25,000 or a lower amount as required by board policy
to the | 11 | | lowest responsible bidder, considering conformity with
| 12 | | specifications, terms of delivery, quality and serviceability, | 13 | | after due
advertisement, except the following: (i) contracts | 14 | | for the services of
individuals possessing a high degree of | 15 | | professional skill where the
ability or fitness of the | 16 | | individual plays an important part; (ii)
contracts for the | 17 | | printing of finance committee reports and departmental
| 18 | | reports; (iii) contracts for the printing or engraving of | 19 | | bonds, tax
warrants and other evidences of indebtedness; (iv) | 20 | | contracts for the
purchase of perishable foods and perishable | 21 | | beverages; (v) contracts for
materials and work which have | 22 | | been awarded to the lowest responsible bidder
after due | 23 | | advertisement, but due to unforeseen revisions, not the fault |
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| 1 | | of
the contractor for materials and work, must be revised | 2 | | causing expenditures
not in excess of 10% of the contract | 3 | | price; (vi)
contracts for the maintenance or servicing of, or | 4 | | provision of
repair parts for, equipment which are made with | 5 | | the manufacturer or
authorized service agent of that equipment | 6 | | where the provision of parts,
maintenance, or servicing can | 7 | | best be performed by the manufacturer or
authorized service | 8 | | agent; (vii) purchases and contracts for the use,
purchase, | 9 | | delivery, movement, or installation of data processing | 10 | | equipment,
software, or services and telecommunications and | 11 | | interconnect
equipment, software, and services; (viii) | 12 | | contracts for duplicating
machines and supplies; (ix) | 13 | | contracts for the purchase of fuel, including diesel, | 14 | | gasoline, oil, aviation, natural gas, or propane, lubricants, | 15 | | or other petroleum products; (x) purchases of
equipment | 16 | | previously owned by some entity other than the district
| 17 | | itself; (xi) contracts for repair, maintenance, remodeling, | 18 | | renovation, or
construction, or a single project involving an | 19 | | expenditure not to exceed
$50,000 and not involving a change | 20 | | or increase in the size, type, or extent
of an existing | 21 | | facility; (xii) contracts for goods or services procured
from | 22 | | another governmental agency; (xiii) contracts for goods or | 23 | | services
which are economically procurable from only one | 24 | | source, such as for the
purchase of magazines, books, | 25 | | periodicals, pamphlets and reports, and for
utility services | 26 | | such as water, light, heat, telephone or telegraph;
(xiv) |
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| 1 | | where funds are expended in an emergency and such emergency
| 2 | | expenditure is approved by 3/4 of the members of the board; | 3 | | (xv) State master contracts authorized under Article 28A of | 4 | | this Code; and (xvi) contracts providing for the | 5 | | transportation of pupils, which contracts must be advertised | 6 | | in the same manner as competitive bids and awarded by first | 7 | | considering the bidder or bidders most able to provide safety | 8 | | and comfort for the pupils, stability of service, and any | 9 | | other factors set forth in the request for proposal regarding | 10 | | quality of service, and then price ; and (xvii) contracts for | 11 | | goods, services, or management in the operation of a school's | 12 | | food service, including a school that participates in any of | 13 | | the United States Department of Agriculture's child nutrition | 14 | | programs . However, at no time shall a cause of action lie | 15 | | against a school board for awarding a pupil transportation | 16 | | contract per the standards set forth in this subsection (a) | 17 | | unless the cause of action is based on fraudulent conduct. | 18 | | All competitive
bids for contracts involving an | 19 | | expenditure in excess of $25,000 or a lower amount as required | 20 | | by board policy must be
sealed by the bidder and must be opened | 21 | | by a member or employee of the
school board at a public bid | 22 | | opening at which the contents of the bids
must be announced. | 23 | | Each bidder must receive at least 3 days' notice of the
time | 24 | | and place of the bid opening. For purposes of this Section due
| 25 | | advertisement includes, but is not limited to, at least one | 26 | | public notice
at least 10 days before the bid date in a |
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| 1 | | newspaper published in the
district, or if no newspaper is | 2 | | published in the district, in a newspaper
of general | 3 | | circulation in the area of the district. State master | 4 | | contracts and certified education purchasing contracts, as | 5 | | defined in Article 28A of this Code, are not subject to the | 6 | | requirements of this paragraph.
| 7 | | Under this Section, the acceptance of bids sealed by a | 8 | | bidder and the opening of these bids at a public bid opening | 9 | | may be permitted by an electronic process for communicating, | 10 | | accepting, and opening competitive bids. An electronic bidding | 11 | | process must provide for, but is not limited to, the following | 12 | | safeguards: | 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.
| 26 | | It is the legislative intent of Public Act 96-841 to maintain |
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| 1 | | the integrity of the sealed bidding process provided for in | 2 | | this Section, to further limit any possibility of bid-rigging, | 3 | | to reduce administrative costs to school districts, and to | 4 | | effect efficiencies in communications with bidders. | 5 | | (b) To require, as a condition of any contract for goods | 6 | | and services,
that persons
bidding for and awarded a contract | 7 | | and all affiliates of the person collect and
remit
Illinois | 8 | | Use Tax on all sales of tangible personal property into the | 9 | | State of
Illinois in
accordance with the provisions of the | 10 | | Illinois Use Tax Act regardless of whether
the
person or | 11 | | affiliate is a "retailer maintaining a place of business | 12 | | within this
State" as
defined in Section 2 of the Use Tax Act. | 13 | | For purposes of this Section, the term
"affiliate"
means any | 14 | | entity that (1) directly, indirectly, or constructively | 15 | | controls
another entity, (2)
is directly, indirectly, or | 16 | | constructively controlled by another entity, or (3)
is subject | 17 | | to
the control of a common entity. For purposes of this | 18 | | subsection (b), an entity
controls
another entity if it owns, | 19 | | directly or individually, more than 10% of the
voting
| 20 | | securities
of that entity. As used in this subsection (b), the | 21 | | term "voting security"
means a security
that (1) confers upon | 22 | | the holder the right to vote for the election of members
of the | 23 | | board
of directors or similar governing body of the business | 24 | | or (2) is convertible
into, or entitles
the holder to receive | 25 | | upon its exercise, a security that confers such a right
to
| 26 | | vote. A
general partnership interest is a voting security.
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| 1 | | To require that bids and contracts include a certification | 2 | | by the bidder
or
contractor that the bidder or contractor is | 3 | | not barred from bidding for or
entering into a
contract under | 4 | | this Section and that the bidder or contractor acknowledges | 5 | | that
the school
board may declare the contract void if the | 6 | | certification completed pursuant to
this
subsection (b) is | 7 | | false.
| 8 | | (b-5) To require all contracts and agreements that pertain | 9 | | to goods and services and that are intended to generate | 10 | | additional revenue and other remunerations for the school | 11 | | district in excess of $1,000, including without limitation | 12 | | vending machine contracts, sports and other attire, class | 13 | | rings, and photographic services, to be approved by the school | 14 | | board. The school board shall file as an attachment to its | 15 | | annual budget a report, in a form as determined by the State | 16 | | Board of Education, indicating for the prior year the name of | 17 | | the vendor, the product or service provided, and the actual | 18 | | net revenue and non-monetary remuneration from each of the | 19 | | contracts or agreements. In addition, the report shall | 20 | | indicate for what purpose the revenue was used and how and to | 21 | | whom the non-monetary remuneration was distributed.
| 22 | | (b-10) To prohibit any contract to purchase food with a | 23 | | bidder or offeror if the bidder's or offeror's contract terms | 24 | | prohibit the school from donating food to food banks, | 25 | | including, but not limited to, homeless shelters, food | 26 | | pantries, and soup kitchens. |
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| 1 | | (c) If the State education purchasing entity creates a | 2 | | master contract as defined in Article 28A of this Code, then | 3 | | the State education purchasing entity shall notify school | 4 | | districts of the existence of the master contract. | 5 | | (d) In purchasing supplies, materials, equipment, or | 6 | | services that are not subject to subsection (c) of this | 7 | | Section, before a school district solicits bids or awards a | 8 | | contract, the district may review and consider as a bid under | 9 | | subsection (a) of this Section certified education purchasing | 10 | | contracts that are already available through the State | 11 | | education 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 | 14 | | becoming law.
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