Illinois General Assembly - Full Text of SB0279
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Full Text of SB0279  99th General Assembly



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1    AN ACT concerning finance.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Procurement Code is amended by
5adding Section 55-20 as follows:
6    (30 ILCS 500/55-20 new)
7    Sec. 55-20. Contracts for food donation. After the
8effective date of this amendatory Act of the 99th General
9Assembly, a public entity shall not enter into a contract to
10purchase food with a bidder or offeror if the bidder's or
11offeror's contract terms prohibit the public entity from
12donating food to food banks, including, but not limited to,
13homeless shelters, food pantries, and soup kitchens.
14    Section 10. The School Code is amended by changing Section
1510-20.21 as follows:
16    (105 ILCS 5/10-20.21)
17    Sec. 10-20.21. Contracts.
18    (a) To award all contracts for purchase of supplies and
19materials or work involving an expenditure in excess of $25,000
20or a lower amount as required by board policy to the lowest
21responsible bidder, considering conformity with



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1specifications, terms of delivery, quality and serviceability,
2after due advertisement, except the following: (i) contracts
3for the services of individuals possessing a high degree of
4professional skill where the ability or fitness of the
5individual plays an important part; (ii) contracts for the
6printing of finance committee reports and departmental
7reports; (iii) contracts for the printing or engraving of
8bonds, tax warrants and other evidences of indebtedness; (iv)
9contracts for the purchase of perishable foods and perishable
10beverages; (v) contracts for materials and work which have been
11awarded to the lowest responsible bidder after due
12advertisement, but due to unforeseen revisions, not the fault
13of the contractor for materials and work, must be revised
14causing expenditures not in excess of 10% of the contract
15price; (vi) contracts for the maintenance or servicing of, or
16provision of repair parts for, equipment which are made with
17the manufacturer or authorized service agent of that equipment
18where the provision of parts, maintenance, or servicing can
19best be performed by the manufacturer or authorized service
20agent; (vii) purchases and contracts for the use, purchase,
21delivery, movement, or installation of data processing
22equipment, software, or services and telecommunications and
23interconnect equipment, software, and services; (viii)
24contracts for duplicating machines and supplies; (ix)
25contracts for the purchase of natural gas when the cost is less
26than that offered by a public utility; (x) purchases of



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1equipment previously owned by some entity other than the
2district itself; (xi) contracts for repair, maintenance,
3remodeling, renovation, or construction, or a single project
4involving an expenditure not to exceed $50,000 and not
5involving a change or increase in the size, type, or extent of
6an existing facility; (xii) contracts for goods or services
7procured from another governmental agency; (xiii) contracts
8for goods or services which are economically procurable from
9only one source, such as for the purchase of magazines, books,
10periodicals, pamphlets and reports, and for utility services
11such as water, light, heat, telephone or telegraph; (xiv) where
12funds are expended in an emergency and such emergency
13expenditure is approved by 3/4 of the members of the board;
14(xv) State master contracts authorized under Article 28A of
15this Code; and (xvi) contracts providing for the transportation
16of pupils, which contracts must be advertised in the same
17manner as competitive bids and awarded by first considering the
18bidder or bidders most able to provide safety and comfort for
19the pupils, stability of service, and any other factors set
20forth in the request for proposal regarding quality of service,
21and then price. However, at no time shall a cause of action lie
22against a school board for awarding a pupil transportation
23contract per the standards set forth in this subsection (a)
24unless the cause of action is based on fraudulent conduct.
25    All competitive bids for contracts involving an
26expenditure in excess of $25,000 or a lower amount as required



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1by board policy must be sealed by the bidder and must be opened
2by a member or employee of the school board at a public bid
3opening at which the contents of the bids must be announced.
4Each bidder must receive at least 3 days' notice of the time
5and place of the bid opening. For purposes of this Section due
6advertisement includes, but is not limited to, at least one
7public notice at least 10 days before the bid date in a
8newspaper published in the district, or if no newspaper is
9published in the district, in a newspaper of general
10circulation in the area of the district. State master contracts
11and certified education purchasing contracts, as defined in
12Article 28A of this Code, are not subject to the requirements
13of this paragraph.
14    Under this Section, the acceptance of bids sealed by a
15bidder and the opening of these bids at a public bid opening
16may be permitted by an electronic process for communicating,
17accepting, and opening competitive bids. However, bids for
18construction purposes are prohibited from being communicated,
19accepted, or opened electronically. An electronic bidding
20process must provide for, but is not limited to, the following
22        (1) On the date and time certain of a bid opening, the
23    primary person conducting the competitive, sealed,
24    electronic bid process shall log onto a specified database
25    using a unique username and password previously assigned to
26    the bidder to allow access to the bidder's specific bid



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1    project number.
2        (2) The specified electronic database must be on a
3    network that (i) is in a secure environment behind a
4    firewall; (ii) has specific encryption tools; (iii)
5    maintains specific intrusion detection systems; (iv) has
6    redundant systems architecture with data storage back-up,
7    whether by compact disc or tape; and (v) maintains a
8    disaster recovery plan.
9It is the legislative intent of Public Act 96-841 to maintain
10the integrity of the sealed bidding process provided for in
11this Section, to further limit any possibility of bid-rigging,
12to reduce administrative costs to school districts, and to
13effect efficiencies in communications with bidders.
14    (b) To require, as a condition of any contract for goods
15and services, that persons bidding for and awarded a contract
16and all affiliates of the person collect and remit Illinois Use
17Tax on all sales of tangible personal property into the State
18of Illinois in accordance with the provisions of the Illinois
19Use Tax Act regardless of whether the person or affiliate is a
20"retailer maintaining a place of business within this State" as
21defined in Section 2 of the Use Tax Act. For purposes of this
22Section, the term "affiliate" means any entity that (1)
23directly, indirectly, or constructively controls another
24entity, (2) is directly, indirectly, or constructively
25controlled by another entity, or (3) is subject to the control
26of a common entity. For purposes of this subsection (b), an



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1entity controls another entity if it owns, directly or
2individually, more than 10% of the voting securities of that
3entity. As used in this subsection (b), the term "voting
4security" means a security that (1) confers upon the holder the
5right to vote for the election of members of the board of
6directors or similar governing body of the business or (2) is
7convertible into, or entitles the holder to receive upon its
8exercise, a security that confers such a right to vote. A
9general partnership interest is a voting security.
10    To require that bids and contracts include a certification
11by the bidder or contractor that the bidder or contractor is
12not barred from bidding for or entering into a contract under
13this Section and that the bidder or contractor acknowledges
14that the school board may declare the contract void if the
15certification completed pursuant to this subsection (b) is
17    (b-5) To require all contracts and agreements that pertain
18to goods and services and that are intended to generate
19additional revenue and other remunerations for the school
20district in excess of $1,000, including without limitation
21vending machine contracts, sports and other attire, class
22rings, and photographic services, to be approved by the school
23board. The school board shall file as an attachment to its
24annual budget a report, in a form as determined by the State
25Board of Education, indicating for the prior year the name of
26the vendor, the product or service provided, and the actual net



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1revenue and non-monetary remuneration from each of the
2contracts or agreements. In addition, the report shall indicate
3for what purpose the revenue was used and how and to whom the
4non-monetary remuneration was distributed.
5    (b-10) To prohibit any contract to purchase food with a
6bidder or offeror if the bidder's or offeror's contract terms
7prohibit the school from donating food to food banks,
8including, but not limited to, homeless shelters, food
9pantries, and soup kitchens.
10    (c) If the State education purchasing entity creates a
11master contract as defined in Article 28A of this Code, then
12the State education purchasing entity shall notify school
13districts of the existence of the master contract.
14    (d) In purchasing supplies, materials, equipment, or
15services that are not subject to subsection (c) of this
16Section, before a school district solicits bids or awards a
17contract, the district may review and consider as a bid under
18subsection (a) of this Section certified education purchasing
19contracts that are already available through the State
20education purchasing entity.
21(Source: P.A. 96-392, eff. 1-1-10; 96-841, eff. 12-23-09;
2296-1000, eff. 7-2-10; 97-951, eff. 8-13-12.)
23    Section 99. Effective date. This Act takes effect upon
24becoming law.