| |||||||
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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) |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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.
|
| |||||||
| |||||||
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. |
| |||||||
| |||||||
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.
|