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


Sen. Ram Villivalam

Filed: 3/30/2022





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2    AMENDMENT NO. ______. Amend House Bill 4813 by replacing
3everything after the enacting clause with the following:
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



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1    part;
2        (ii) contracts for the printing of finance committee
3    reports and departmental reports;
4        (iii) contracts for the printing or engraving of
5    bonds, tax warrants and other evidences of indebtedness;
6        (iv) contracts for the purchase of perishable foods
7    and perishable beverages;
8        (v) contracts for materials and work which have been
9    awarded to the lowest responsible bidder after due
10    advertisement, but due to unforeseen revisions, not the
11    fault of the contractor for materials and work, must be
12    revised causing expenditures not in excess of 10% of the
13    contract price;
14        (vi) contracts for the maintenance or servicing of, or
15    provision of repair parts for, equipment which are made
16    with the manufacturer or authorized service agent of that
17    equipment where the provision of parts, maintenance, or
18    servicing can best be performed by the manufacturer or
19    authorized service agent;
20        (vii) purchases and contracts for the use, purchase,
21    delivery, movement, or installation of data processing
22    equipment, software, or services and telecommunications
23    and interconnect equipment, software, and services;
24        (viii) contracts for duplicating machines and
25    supplies;
26        (ix) contracts for the purchase of fuel, including



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1    diesel, gasoline, oil, aviation, natural gas, or propane,
2    lubricants, or other petroleum products;
3        (x) purchases of equipment previously owned by some
4    entity other than the district itself;
5        (xi) contracts for repair, maintenance, remodeling,
6    renovation, or construction, or a single project involving
7    an expenditure not to exceed $50,000 and not involving a
8    change or increase in the size, type, or extent of an
9    existing facility;
10        (xii) contracts for goods or services procured from
11    another governmental agency;
12        (xiii) contracts for goods or services which are
13    economically procurable from only one source, such as for
14    the purchase of magazines, books, periodicals, pamphlets
15    and reports, and for utility services such as water,
16    light, heat, telephone or telegraph;
17        (xiv) where funds are expended in an emergency and
18    such emergency expenditure is approved by 3/4 of the
19    members of the board;
20        (xv) State master contracts authorized under Article
21    28A of this Code; and
22        (xvi) contracts providing for the transportation of
23    pupils, which contracts must be advertised in the same
24    manner as competitive bids and awarded by first
25    considering the bidder or bidders most able to provide
26    safety and comfort for the pupils, stability of service,



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1    and any other factors set forth in the request for
2    proposal regarding quality of service, and then price; and
3        (xvii) contracts for goods, services, or management in
4    the operation of a school's food service, including a
5    school that participates in any of the United States
6    Department of Agriculture's child nutrition programs if a
7    good faith effort is made on behalf of the school district
8    to give preference to:
9            (1) contracts that procure food that promotes the
10        health and well-being of students, in compliance with
11        United States Department of Agriculture nutrition
12        standards for school meals. Contracts should also
13        promote the production of scratch made, minimally
14        processed foods;
15            (2) contracts that give a preference to State or
16        regional suppliers that source local food products;
17            (3) contracts that give a preference to food
18        suppliers that utilize producers that adopt hormone
19        and pest management practices recommended by the
20        United States Department of Agriculture;
21            (4) contracts that give a preference to food
22        suppliers that value animal welfare; and
23            (5) contracts that increase opportunities for
24        businesses owned and operated by minorities, women, or
25        persons with disabilities.
26    Food supplier data shall be submitted to the school



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1    district at the time of the bid, to the best of the
2    bidder's ability, and updated annually thereafter during
3    the term of the contract. The contractor shall submit the
4    updated food supplier data. The data required under this
5    item (xvii) shall include the name and address of each
6    supplier, distributor, processor, and producer involved in
7    the provision of the products that the bidder is to
8    supply.
9However, at no time shall a cause of action lie against a
10school board for awarding a pupil transportation contract per
11the standards set forth in this subsection (a) unless the
12cause of action is based on fraudulent conduct.
13    All competitive bids for contracts involving an
14expenditure in excess of $25,000 or a lower amount as required
15by board policy must be sealed by the bidder and must be opened
16by a member or employee of the school board at a public bid
17opening at which the contents of the bids must be announced.
18Each bidder must receive at least 3 days' notice of the time
19and place of the bid opening. For purposes of this Section due
20advertisement includes, but is not limited to, at least one
21public notice at least 10 days before the bid date in a
22newspaper published in the district, or if no newspaper is
23published in the district, in a newspaper of general
24circulation in the area of the district. State master
25contracts and certified education purchasing contracts, as
26defined in Article 28A of this Code, are not subject to the



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1requirements of this paragraph.
2    Under this Section, the acceptance of bids sealed by a
3bidder and the opening of these bids at a public bid opening
4may be permitted by an electronic process for communicating,
5accepting, and opening competitive bids. An electronic bidding
6process must provide for, but is not limited to, the following
8        (1) On the date and time certain of a bid opening, the
9    primary person conducting the competitive, sealed,
10    electronic bid process shall log onto a specified database
11    using a unique username and password previously assigned
12    to the bidder to allow access to the bidder's specific bid
13    project number.
14        (2) The specified electronic database must be on a
15    network that (i) is in a secure environment behind a
16    firewall; (ii) has specific encryption tools; (iii)
17    maintains specific intrusion detection systems; (iv) has
18    redundant systems architecture with data storage back-up,
19    whether by compact disc or tape; and (v) maintains a
20    disaster recovery plan.
21It is the legislative intent of Public Act 96-841 to maintain
22the integrity of the sealed bidding process provided for in
23this Section, to further limit any possibility of bid-rigging,
24to reduce administrative costs to school districts, and to
25effect efficiencies in communications with bidders.
26    (b) To require, as a condition of any contract for goods



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1and services, that persons bidding for and awarded a contract
2and all affiliates of the person collect and remit Illinois
3Use Tax on all sales of tangible personal property into the
4State of Illinois in accordance with the provisions of the
5Illinois Use Tax Act regardless of whether the person or
6affiliate is a "retailer maintaining a place of business
7within this State" as defined in Section 2 of the Use Tax Act.
8For purposes of this Section, the term "affiliate" means any
9entity that (1) directly, indirectly, or constructively
10controls another entity, (2) is directly, indirectly, or
11constructively controlled by another entity, or (3) is subject
12to the control of a common entity. For purposes of this
13subsection (b), an entity controls another entity if it owns,
14directly or individually, more than 10% of the voting
15securities of that entity. As used in this subsection (b), the
16term "voting security" means a security that (1) confers upon
17the holder the right to vote for the election of members of the
18board of directors or similar governing body of the business
19or (2) is convertible into, or entitles the holder to receive
20upon its exercise, a security that confers such a right to
21vote. A general partnership interest is a voting security.
22    To require that bids and contracts include a certification
23by the bidder or contractor that the bidder or contractor is
24not barred from bidding for or entering into a contract under
25this Section and that the bidder or contractor acknowledges
26that the school board may declare the contract void if the



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1certification completed pursuant to this subsection (b) is
3    (b-5) To require all contracts and agreements that pertain
4to goods and services and that are intended to generate
5additional revenue and other remunerations for the school
6district in excess of $1,000, including without limitation
7vending machine contracts, sports and other attire, class
8rings, and photographic services, to be approved by the school
9board. The school board shall file as an attachment to its
10annual budget a report, in a form as determined by the State
11Board of Education, indicating for the prior year the name of
12the vendor, the product or service provided, and the actual
13net revenue and non-monetary remuneration from each of the
14contracts or agreements. In addition, the report shall
15indicate for what purpose the revenue was used and how and to
16whom the non-monetary remuneration was distributed.
17    (b-10) To prohibit any contract to purchase food with a
18bidder or offeror if the bidder's or offeror's contract terms
19prohibit the school from donating food to food banks,
20including, but not limited to, homeless shelters, food
21pantries, and soup kitchens.
22    (c) If the State education purchasing entity creates a
23master contract as defined in Article 28A of this Code, then
24the State education purchasing entity shall notify school
25districts of the existence of the master contract.
26    (d) In purchasing supplies, materials, equipment, or



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1services that are not subject to subsection (c) of this
2Section, before a school district solicits bids or awards a
3contract, the district may review and consider as a bid under
4subsection (a) of this Section certified education purchasing
5contracts that are already available through the State
6education purchasing entity.
7(Source: P.A. 101-570, eff. 8-23-19; 101-632, eff. 6-5-20.)
8    Section 99. Effective date. This Act takes effect upon
9becoming law.".