Full Text of HB2421 102nd General Assembly
HB2421 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 HB2421 Introduced 2/17/2021, 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. Provides that a school board may award contracts for the purchase of supplies and materials or work involving an expenditure in excess of $50,000 or a lower amount as required by board policy to the lowest responsible and responsive bidder or to the bidder determined to best meet the needs of the board, considering such factors as conformity with
specifications, terms of delivery, quality, and serviceability and such other performance criteria determined by board policy and included in the bid documents, and then price (rather than awarding contracts for the purchase of supplies and materials or work involving an expenditure in excess of $25,000 or a lower amount as required by board policy to the lowest responsible bidder, considering conformity with specifications, terms of delivery, quality, and serviceability), after due advertisement. Provides for an exception for contracts for the repair, maintenance, remodeling, renovation, or
construction or a single project involving an expenditure not to exceed $100,000
(rather than $50,000) and not involving a change or increase in the size, type, or extent
of an existing facility. Makes related changes.
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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
the purchase of supplies | 9 | | and materials or work involving an expenditure in excess of | 10 | | $50,000 $25,000 or a lower amount as required by board policy
| 11 | | to the lowest responsible and responsive bidder or to the | 12 | | bidder determined to best meet the needs of the board , | 13 | | considering such factors as conformity with
specifications, | 14 | | terms of delivery, quality , and serviceability and such other | 15 | | performance criteria determined by board policy and included | 16 | | in the bid documents, and then price , after due
advertisement, | 17 | | except the following: (i) contracts for the services of
| 18 | | individuals possessing a high degree of professional skill | 19 | | where the
ability or fitness of the individual plays an | 20 | | important part; (ii)
contracts for the printing of finance | 21 | | committee reports and departmental
reports; (iii) contracts | 22 | | for the printing or engraving of bonds, tax
warrants and other | 23 | | evidences of indebtedness; (iv) contracts for the
purchase of |
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| 1 | | perishable foods and perishable beverages; (v) contracts for
| 2 | | materials and work which have been awarded to the lowest | 3 | | responsible bidder
after due advertisement, but due to | 4 | | unforeseen revisions, not the fault of
the contractor for | 5 | | materials and work, must be revised causing expenditures
not | 6 | | in excess of 10% of the contract price; (vi)
contracts for the | 7 | | maintenance or servicing of, or provision of
repair parts for, | 8 | | equipment which are made with the manufacturer or
authorized | 9 | | service agent of that equipment where the provision of parts,
| 10 | | maintenance, or servicing can best be performed by the | 11 | | manufacturer or
authorized service agent; (vii) purchases and | 12 | | contracts for the use,
purchase, delivery, movement, or | 13 | | installation of data processing equipment,
software, or | 14 | | services and telecommunications and interconnect
equipment, | 15 | | software, and services; (viii) contracts for duplicating
| 16 | | machines and supplies; (ix) contracts for the purchase of | 17 | | fuel, including diesel, gasoline, oil, aviation, natural gas, | 18 | | or propane, lubricants, or other petroleum products; (x) | 19 | | purchases of
equipment previously owned by some entity other | 20 | | than the district
itself; (xi) contracts for repair, | 21 | | maintenance, remodeling, renovation, or
construction , or a | 22 | | single project involving an expenditure not to exceed $100,000
| 23 | | $50,000 and not involving a change or increase in the size, | 24 | | type, or extent
of an existing facility; (xii) contracts for | 25 | | goods or services procured
from another governmental agency; | 26 | | (xiii) contracts for goods or services
which are economically |
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| 1 | | procurable from only one source, such as for the
purchase of | 2 | | magazines, books, periodicals, pamphlets and reports, and for
| 3 | | utility services such as water, light, heat, telephone or | 4 | | telegraph;
(xiv) where funds are expended in an emergency and | 5 | | such emergency
expenditure is approved by 3/4 of the members | 6 | | of the board; (xv) State master contracts authorized under | 7 | | Article 28A of this Code; and (xvi) contracts providing for | 8 | | the transportation of pupils, which contracts must be | 9 | | advertised in the same manner as competitive bids and awarded | 10 | | by first considering the bidder or bidders most able to | 11 | | provide safety and comfort for the pupils, stability of | 12 | | service, and any other factors set forth in the request for | 13 | | proposal regarding quality of service, and then price. | 14 | | However, at no time shall a cause of action lie against a | 15 | | school board for awarding a pupil transportation contract per | 16 | | the standards set forth in this subsection (a) unless the | 17 | | cause of action is based on fraudulent conduct. | 18 | | All competitive
bids for contracts involving an | 19 | | expenditure in excess of $50,000 $25,000 or a lower amount as | 20 | | required by board policy must be
sealed by the bidder and must | 21 | | be opened by a member or employee of the
school board at a | 22 | | public bid opening at which the contents of the bids
must be | 23 | | announced. Each bidder must receive at least 3 days' notice of | 24 | | the
time and place of the bid opening. For purposes of this | 25 | | Section due
advertisement includes, but is not limited to, at | 26 | | least one public notice
at least 10 days before the bid date in |
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| 1 | | a 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 | | (105 ILCS 5/34-21.3) (from Ch. 122, par. 34-21.3)
| 14 | | Sec. 34-21.3. Contracts. The board shall by record vote | 15 | | let all
contracts (other than those excepted
by Section | 16 | | 10-20.21 of The School Code) for supplies, materials,
work, | 17 | | and contracts with private carriers for transportation
of | 18 | | pupils, involving an expenditure in excess of $50,000 $25,000 | 19 | | or a lower amount as required by board policy by competitive
| 20 | | bidding as provided in Section 10-20.21 of The School Code.
| 21 | | The board may delegate to the general superintendent of | 22 | | schools, by
resolution, the authority to approve contracts in | 23 | | amounts of $50,000 $25,000 or
less.
| 24 | | For a period of one year from and after the expiration or | 25 | | other termination
of his or her term of office as a member of |
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| 1 | | the board: (i) the former board
member shall not be eligible | 2 | | for employment nor be employed by the board, a
local school | 3 | | council, an attendance center, or any other
subdivision or | 4 | | agent of the board or the school district governed by the | 5 | | board,
and (ii) neither the board nor the chief purchasing | 6 | | officer shall let or
delegate
authority to let any contract | 7 | | for
services, employment, or other work to the former board | 8 | | member or to any
corporation,
partnership, association, sole | 9 | | proprietorship, or other entity other than
publicly traded | 10 | | companies from which the
former board member receives an | 11 | | annual income, dividends, or other compensation
in excess of | 12 | | $1,500. Any contract that is entered into by or under a
| 13 | | delegation of authority from the board or the chief purchasing | 14 | | officer shall
contain a
provision stating that
the contract is | 15 | | not legally binding on the board if entered into in violation
| 16 | | of the provisions of this paragraph.
| 17 | | In addition, the State Board of Education, in consultation | 18 | | with the board,
shall (i) review existing conflict of interest | 19 | | and disclosure laws or
regulations that are applicable to the | 20 | | executive officers and governing boards
of school districts | 21 | | organized under this Article and school districts
generally, | 22 | | (ii) determine what additional disclosure and conflict of | 23 | | interest
provisions would enhance the reputation and fiscal | 24 | | integrity of the board and
the procedure under which contracts | 25 | | for goods and services are let, and (iii)
develop appropriate | 26 | | reporting forms and procedures applicable to the executive
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| 1 | | officers, governing board, and other officials of the school | 2 | | district.
| 3 | | (Source: P.A. 95-990, eff. 10-3-08.)
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