Illinois General Assembly - Full Text of HB4813
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Full Text of HB4813  102nd General Assembly




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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
10$25,000 or a lower amount as required by board policy to the
11lowest responsible bidder, considering conformity with
12specifications, terms of delivery, quality and serviceability,
13after due advertisement, except the following:
14        (i) contracts for the services of individuals
15    possessing a high degree of professional skill where the
16    ability or fitness of the individual plays an important
17    part;
18        (ii) contracts for the printing of finance committee
19    reports and departmental reports;
20        (iii) contracts for the printing or engraving of
21    bonds, tax warrants and other evidences of indebtedness;
22        (iv) contracts for the purchase of perishable foods
23    and perishable beverages;



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1        (v) contracts for materials and work which have been
2    awarded to the lowest responsible bidder after due
3    advertisement, but due to unforeseen revisions, not the
4    fault of the contractor for materials and work, must be
5    revised causing expenditures not in excess of 10% of the
6    contract price;
7        (vi) contracts for the maintenance or servicing of, or
8    provision of repair parts for, equipment which are made
9    with the manufacturer or authorized service agent of that
10    equipment where the provision of parts, maintenance, or
11    servicing can best be performed by the manufacturer or
12    authorized service agent;
13        (vii) purchases and contracts for the use, purchase,
14    delivery, movement, or installation of data processing
15    equipment, software, or services and telecommunications
16    and interconnect equipment, software, and services;
17        (viii) contracts for duplicating machines and
18    supplies;
19        (ix) contracts for the purchase of fuel, including
20    diesel, gasoline, oil, aviation, natural gas, or propane,
21    lubricants, or other petroleum products;
22        (x) purchases of equipment previously owned by some
23    entity other than the district itself;
24        (xi) contracts for repair, maintenance, remodeling,
25    renovation, or construction, or a single project involving
26    an expenditure not to exceed $50,000 and not involving a



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1    change or increase in the size, type, or extent of an
2    existing facility;
3        (xii) contracts for goods or services procured from
4    another governmental agency;
5        (xiii) contracts for goods or services which are
6    economically procurable from only one source, such as for
7    the purchase of magazines, books, periodicals, pamphlets
8    and reports, and for utility services such as water,
9    light, heat, telephone or telegraph;
10        (xiv) where funds are expended in an emergency and
11    such emergency expenditure is approved by 3/4 of the
12    members of the board;
13        (xv) State master contracts authorized under Article
14    28A of this Code; and
15        (xvi) contracts providing for the transportation of
16    pupils, which contracts must be advertised in the same
17    manner as competitive bids and awarded by first
18    considering the bidder or bidders most able to provide
19    safety and comfort for the pupils, stability of service,
20    and any other factors set forth in the request for
21    proposal regarding quality of service, and then price; and
22        (xvii) contracts for goods, services, or management in
23    the operation of a school's food service, including a
24    school that participates in any of the United States
25    Department of Agriculture's child nutrition programs if a
26    good faith effort is made on behalf of the school district



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1    to give preference to:
2            (1) contracts that procure food that promotes the
3        health and well-being of students, in compliance with
4        United States Department of Agriculture nutrition
5        standards for school meals. Contracts should also
6        promote the production of scratch made, minimally
7        processed foods;
8            (2) contracts that give a preference to State or
9        regional suppliers that source local food products;
10            (3) contracts that give a preference to food
11        suppliers that utilize producers that adopt hormone
12        and pest management practices recommended by the
13        United States Department of Agriculture;
14            (4) contracts that give a preference to food
15        suppliers that value animal welfare; and
16            (5) contracts that increase opportunities for
17        businesses owned and operated by minorities, women, or
18        persons with disabilities.
19    Food supplier data shall be submitted to the school
20    district at the time of the bid, to the best of the
21    bidder's ability, and updated annually thereafter during
22    the term of the contract. The contractor shall submit the
23    updated food supplier data. The data required under this
24    item (xvii) shall include the name and address of each
25    supplier, distributor, processor, and producer involved in
26    the provision of the products that the bidder is to



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1    supply.
2However, at no time shall a cause of action lie against a
3school board for awarding a pupil transportation contract per
4the standards set forth in this subsection (a) unless the
5cause of action is based on fraudulent conduct.
6    All competitive bids for contracts involving an
7expenditure in excess of $25,000 or a lower amount as required
8by board policy must be sealed by the bidder and must be opened
9by a member or employee of the school board at a public bid
10opening at which the contents of the bids must be announced.
11Each bidder must receive at least 3 days' notice of the time
12and place of the bid opening. For purposes of this Section due
13advertisement includes, but is not limited to, at least one
14public notice at least 10 days before the bid date in a
15newspaper published in the district, or if no newspaper is
16published in the district, in a newspaper of general
17circulation in the area of the district. State master
18contracts and certified education purchasing contracts, as
19defined in Article 28A of this Code, are not subject to the
20requirements of this paragraph.
21    Under this Section, the acceptance of bids sealed by a
22bidder and the opening of these bids at a public bid opening
23may be permitted by an electronic process for communicating,
24accepting, and opening competitive bids. An electronic bidding
25process must provide for, but is not limited to, the following



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1        (1) On the date and time certain of a bid opening, the
2    primary person conducting the competitive, sealed,
3    electronic bid process shall log onto a specified database
4    using a unique username and password previously assigned
5    to the bidder to allow access to the bidder's specific bid
6    project number.
7        (2) The specified electronic database must be on a
8    network that (i) is in a secure environment behind a
9    firewall; (ii) has specific encryption tools; (iii)
10    maintains specific intrusion detection systems; (iv) has
11    redundant systems architecture with data storage back-up,
12    whether by compact disc or tape; and (v) maintains a
13    disaster recovery plan.
14It is the legislative intent of Public Act 96-841 to maintain
15the integrity of the sealed bidding process provided for in
16this Section, to further limit any possibility of bid-rigging,
17to reduce administrative costs to school districts, and to
18effect efficiencies in communications with bidders.
19    (b) To require, as a condition of any contract for goods
20and services, that persons bidding for and awarded a contract
21and all affiliates of the person collect and remit Illinois
22Use Tax on all sales of tangible personal property into the
23State of Illinois in accordance with the provisions of the
24Illinois Use Tax Act regardless of whether the person or
25affiliate is a "retailer maintaining a place of business
26within this State" as defined in Section 2 of the Use Tax Act.



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1For purposes of this Section, the term "affiliate" means any
2entity that (1) directly, indirectly, or constructively
3controls another entity, (2) is directly, indirectly, or
4constructively controlled by another entity, or (3) is subject
5to the control of a common entity. For purposes of this
6subsection (b), an entity controls another entity if it owns,
7directly or individually, more than 10% of the voting
8securities of that entity. As used in this subsection (b), the
9term "voting security" means a security that (1) confers upon
10the holder the right to vote for the election of members of the
11board of directors or similar governing body of the business
12or (2) is convertible into, or entitles the holder to receive
13upon its exercise, a security that confers such a right to
14vote. A general partnership interest is a voting security.
15    To require that bids and contracts include a certification
16by the bidder or contractor that the bidder or contractor is
17not barred from bidding for or entering into a contract under
18this Section and that the bidder or contractor acknowledges
19that the school board may declare the contract void if the
20certification completed pursuant to this subsection (b) is
22    (b-5) To require all contracts and agreements that pertain
23to goods and services and that are intended to generate
24additional revenue and other remunerations for the school
25district in excess of $1,000, including without limitation
26vending machine contracts, sports and other attire, class



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1rings, and photographic services, to be approved by the school
2board. The school board shall file as an attachment to its
3annual budget a report, in a form as determined by the State
4Board of Education, indicating for the prior year the name of
5the vendor, the product or service provided, and the actual
6net revenue and non-monetary remuneration from each of the
7contracts or agreements. In addition, the report shall
8indicate for what purpose the revenue was used and how and to
9whom the non-monetary remuneration was distributed.
10    (b-10) To prohibit any contract to purchase food with a
11bidder or offeror if the bidder's or offeror's contract terms
12prohibit the school from donating food to food banks,
13including, but not limited to, homeless shelters, food
14pantries, and soup kitchens.
15    (c) If the State education purchasing entity creates a
16master contract as defined in Article 28A of this Code, then
17the State education purchasing entity shall notify school
18districts of the existence of the master contract.
19    (d) In purchasing supplies, materials, equipment, or
20services that are not subject to subsection (c) of this
21Section, before a school district solicits bids or awards a
22contract, the district may review and consider as a bid under
23subsection (a) of this Section certified education purchasing
24contracts that are already available through the State
25education purchasing entity.
26(Source: P.A. 101-570, eff. 8-23-19; 101-632, eff. 6-5-20.)



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1    Section 99. Effective date. This Act takes effect upon
2becoming law.