Full Text of HB5375 102nd General Assembly
HB5375 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 HB5375 Introduced 1/31/2022, by Rep. Daniel Didech SYNOPSIS AS INTRODUCED: |
| 105 ILCS 5/10-20.21 | |
105 ILCS 5/34-21.3 | from Ch. 122, par. 34-21.3 |
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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.
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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 Sections | 5 | | 10-20.21 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 | 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. However, at no time shall a | 11 | | cause of action lie against a school board for awarding a pupil | 12 | | transportation contract per the standards set forth in this | 13 | | subsection (a) unless the cause of action is based on | 14 | | fraudulent conduct. | 15 | | All competitive
bids for contracts involving an | 16 | | expenditure in excess of $25,000 or a lower amount as required | 17 | | by board policy must be
sealed by the bidder and must be opened | 18 | | by a member or employee of the
school board at a public bid | 19 | | opening at which the contents of the bids
must be announced. | 20 | | Each bidder must receive at least 3 days' notice of the
time | 21 | | and place of the bid opening. For purposes of this Section due
| 22 | | advertisement includes, but is not limited to, at least one | 23 | | public notice
at least 10 days before the bid date in a | 24 | | newspaper published in the
district, or if no newspaper is | 25 | | published in the district, in a newspaper
of general | 26 | | circulation in the area of the district. State master |
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| 1 | | contracts and certified education purchasing contracts, as | 2 | | defined in Article 28A of this Code, are not subject to the | 3 | | requirements of this paragraph.
| 4 | | Under this Section, the acceptance of bids sealed by a | 5 | | bidder and the opening of these bids at a public bid opening | 6 | | may be permitted by an electronic process for communicating, | 7 | | accepting, and opening competitive bids. An electronic bidding | 8 | | process must provide for, but is not limited to, the following | 9 | | safeguards: | 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.
| 23 | | It is the legislative intent of Public Act 96-841 to maintain | 24 | | the integrity of the sealed bidding process provided for in | 25 | | this Section, to further limit any possibility of bid-rigging, | 26 | | to reduce administrative costs to school districts, and to |
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| 1 | | effect efficiencies in communications with bidders. | 2 | | On January 1 of each year, the State Board of Education | 3 | | shall adjust the amount established in this subsection (a) for | 4 | | which a contract must be awarded to the lowest responsible | 5 | | bidder for inflation, as determined by the Consumer Price | 6 | | Index for All Urban Consumers for all items published by the | 7 | | Bureau of Labor Statistics of the United States Department of | 8 | | Labor and rounded to the nearest $100. The State Board of | 9 | | Education shall publish this information on its official | 10 | | website. | 11 | | (b) To require, as a condition of any contract for goods | 12 | | and services,
that persons
bidding for and awarded a contract | 13 | | and all affiliates of the person collect and
remit
Illinois | 14 | | Use Tax on all sales of tangible personal property into the | 15 | | State of
Illinois in
accordance with the provisions of the | 16 | | Illinois Use Tax Act regardless of whether
the
person or | 17 | | affiliate is a "retailer maintaining a place of business | 18 | | within this
State" as
defined in Section 2 of the Use Tax Act. | 19 | | For purposes of this Section, the term
"affiliate"
means any | 20 | | entity that (1) directly, indirectly, or constructively | 21 | | controls
another entity, (2)
is directly, indirectly, or | 22 | | constructively controlled by another entity, or (3)
is subject | 23 | | to
the control of a common entity. For purposes of this | 24 | | subsection (b), an entity
controls
another entity if it owns, | 25 | | directly or individually, more than 10% of the
voting
| 26 | | securities
of that entity. As used in this subsection (b), the |
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| 1 | | term "voting security"
means a security
that (1) confers upon | 2 | | the holder the right to vote for the election of members
of the | 3 | | board
of directors or similar governing body of the business | 4 | | or (2) is convertible
into, or entitles
the holder to receive | 5 | | upon its exercise, a security that confers such a right
to
| 6 | | vote. A
general partnership interest is a voting security.
| 7 | | To require that bids and contracts include a certification | 8 | | by the bidder
or
contractor that the bidder or contractor is | 9 | | not barred from bidding for or
entering into a
contract under | 10 | | this Section and that the bidder or contractor acknowledges | 11 | | that
the school
board may declare the contract void if the | 12 | | certification completed pursuant to
this
subsection (b) is | 13 | | false.
| 14 | | (b-5) To require all contracts and agreements that pertain | 15 | | to goods and services and that are intended to generate | 16 | | additional revenue and other remunerations for the school | 17 | | district in excess of $1,000, including without limitation | 18 | | vending machine contracts, sports and other attire, class | 19 | | rings, and photographic services, to be approved by the school | 20 | | board. The school board shall file as an attachment to its | 21 | | annual budget a report, in a form as determined by the State | 22 | | Board of Education, indicating for the prior year the name of | 23 | | the vendor, the product or service provided, and the actual | 24 | | net revenue and non-monetary remuneration from each of the | 25 | | contracts or agreements. In addition, the report shall | 26 | | indicate for what purpose the revenue was used and how and to |
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| 1 | | whom the non-monetary remuneration was distributed.
| 2 | | (b-10) To prohibit any contract to purchase food with a | 3 | | bidder or offeror if the bidder's or offeror's contract terms | 4 | | prohibit the school from donating food to food banks, | 5 | | including, but not limited to, homeless shelters, food | 6 | | pantries, and soup kitchens. | 7 | | (c) If the State education purchasing entity creates a | 8 | | master contract as defined in Article 28A of this Code, then | 9 | | the State education purchasing entity shall notify school | 10 | | districts of the existence of the master contract. | 11 | | (d) In purchasing supplies, materials, equipment, or | 12 | | services that are not subject to subsection (c) of this | 13 | | Section, before a school district solicits bids or awards a | 14 | | contract, the district may review and consider as a bid under | 15 | | subsection (a) of this Section certified education purchasing | 16 | | contracts that are already available through the State | 17 | | education 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 | 21 | | let all
contracts (other than those excepted
by Section | 22 | | 10-20.21 of this The School Code) for supplies, materials,
| 23 | | work, and contracts with private carriers for transportation
| 24 | | of pupils, involving an expenditure in excess of $25,000 or a | 25 | | lower amount as required by board policy by competitive
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| 1 | | bidding as provided in Section 10-20.21 of this The School | 2 | | Code.
| 3 | | The board may delegate to the general superintendent of | 4 | | schools, by
resolution, the authority to approve contracts in | 5 | | amounts of $25,000 or
less.
| 6 | | On January 1 of each year, the State Board of Education | 7 | | shall adjust the amount established in this Section for which | 8 | | a contract must be awarded to the lowest responsible bidder | 9 | | for inflation, as determined by the Consumer Price Index for | 10 | | All Urban Consumers for all items published by the Bureau of | 11 | | Labor Statistics of the United States Department of Labor and | 12 | | rounded to the nearest $100. The State Board of Education | 13 | | shall publish this information on its official website. | 14 | | For a period of one year from and after the expiration or | 15 | | other termination
of his or her term of office as a member of | 16 | | the board: (i) the former board
member shall not be eligible | 17 | | for employment nor be employed by the board, a
local school | 18 | | council, an attendance center, or any other
subdivision or | 19 | | agent of the board or the school district governed by the | 20 | | board,
and (ii) neither the board nor the chief purchasing | 21 | | officer shall let or
delegate
authority to let any contract | 22 | | for
services, employment, or other work to the former board | 23 | | member or to any
corporation,
partnership, association, sole | 24 | | proprietorship, or other entity other than
publicly traded | 25 | | companies from which the
former board member receives an | 26 | | annual 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
| 2 | | delegation of authority from the board or the chief purchasing | 3 | | officer shall
contain a
provision stating that
the contract is | 4 | | not legally binding on the board if entered into in violation
| 5 | | of the provisions of this paragraph.
| 6 | | In addition, the State Board of Education, in consultation | 7 | | with the board,
shall (i) review existing conflict of interest | 8 | | and disclosure laws or
regulations that are applicable to the | 9 | | executive officers and governing boards
of school districts | 10 | | organized under this Article and school districts
generally, | 11 | | (ii) determine what additional disclosure and conflict of | 12 | | interest
provisions would enhance the reputation and fiscal | 13 | | integrity of the board and
the procedure under which contracts | 14 | | for goods and services are let, and (iii)
develop appropriate | 15 | | reporting forms and procedures applicable to the executive
| 16 | | officers, governing board, and other officials of the school | 17 | | district.
| 18 | | (Source: P.A. 95-990, eff. 10-3-08.)
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