HB4029 EnrolledLRB097 15080 RPM 60171 b

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

 

 

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1advertisement, but due to unforeseen revisions, not the fault
2of the contractor for materials and work, must be revised
3causing expenditures not in excess of 10% of the contract
4price; (vi) contracts for the maintenance or servicing of, or
5provision of repair parts for, equipment which are made with
6the manufacturer or authorized service agent of that equipment
7where the provision of parts, maintenance, or servicing can
8best be performed by the manufacturer or authorized service
9agent; (vii) purchases and contracts for the use, purchase,
10delivery, movement, or installation of data processing
11equipment, software, or services and telecommunications and
12interconnect equipment, software, and services; (viii)
13contracts for duplicating machines and supplies; (ix)
14contracts for the purchase of natural gas when the cost is less
15than that offered by a public utility; (x) purchases of
16equipment previously owned by some entity other than the
17district itself; (xi) contracts for repair, maintenance,
18remodeling, renovation, or construction, or a single project
19involving an expenditure not to exceed $50,000 and not
20involving a change or increase in the size, type, or extent of
21an existing facility; (xii) contracts for goods or services
22procured from another governmental agency; (xiii) contracts
23for goods or services which are economically procurable from
24only one source, such as for the purchase of magazines, books,
25periodicals, pamphlets and reports, and for utility services
26such as water, light, heat, telephone or telegraph; (xiv) where

 

 

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1funds are expended in an emergency and such emergency
2expenditure is approved by 3/4 of the members of the board;
3(xv) State master contracts authorized under Article 28A of
4this Code; and (xvi) contracts providing for the transportation
5of pupils with special needs or disabilities, which contracts
6must be advertised in the same manner as competitive bids and
7awarded by first considering the bidder or bidders most able to
8provide safety and comfort for the pupils with special needs or
9disabilities, stability of service, and any other factors set
10forth in the request for proposal regarding quality of service,
11and then price. However, at no time shall a cause of action lie
12against a school board for awarding a pupil transportation
13contract per the standards set forth in this subsection (a)
14unless the cause of action is based on fraudulent conduct.
15    All competitive bids for contracts involving an
16expenditure in excess of $25,000 or a lower amount as required
17by board policy must be sealed by the bidder and must be opened
18by a member or employee of the school board at a public bid
19opening at which the contents of the bids must be announced.
20Each bidder must receive at least 3 days' notice of the time
21and place of the bid opening. For purposes of this Section due
22advertisement includes, but is not limited to, at least one
23public notice at least 10 days before the bid date in a
24newspaper published in the district, or if no newspaper is
25published in the district, in a newspaper of general
26circulation in the area of the district. State master contracts

 

 

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1and certified education purchasing contracts, as defined in
2Article 28A of this Code, are not subject to the requirements
3of this paragraph.
4    Under this Section, the acceptance of bids sealed by a
5bidder and the opening of these bids at a public bid opening
6may be permitted by an electronic process for communicating,
7accepting, and opening competitive bids. However, bids for
8construction purposes are prohibited from being communicated,
9accepted, or opened electronically. An electronic bidding
10process must provide for, but is not limited to, the following
11safeguards:
12        (1) On the date and time certain of a bid opening, the
13    primary person conducting the competitive, sealed,
14    electronic bid process shall log onto a specified database
15    using a unique username and password previously assigned to
16    the bidder to allow access to the bidder's specific bid
17    project number.
18        (2) The specified electronic database must be on a
19    network that (i) is in a secure environment behind a
20    firewall; (ii) has specific encryption tools; (iii)
21    maintains specific intrusion detection systems; (iv) has
22    redundant systems architecture with data storage back-up,
23    whether by compact disc or tape; and (v) maintains a
24    disaster recovery plan.
25It is the legislative intent of Public Act 96-841 to maintain
26the integrity of the sealed bidding process provided for in

 

 

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1this Section, to further limit any possibility of bid-rigging,
2to reduce administrative costs to school districts, and to
3effect efficiencies in communications with bidders.
4    (b) To require, as a condition of any contract for goods
5and services, that persons bidding for and awarded a contract
6and all affiliates of the person collect and remit Illinois Use
7Tax on all sales of tangible personal property into the State
8of Illinois in accordance with the provisions of the Illinois
9Use Tax Act regardless of whether the person or affiliate is a
10"retailer maintaining a place of business within this State" as
11defined in Section 2 of the Use Tax Act. For purposes of this
12Section, the term "affiliate" means any entity that (1)
13directly, indirectly, or constructively controls another
14entity, (2) is directly, indirectly, or constructively
15controlled by another entity, or (3) is subject to the control
16of a common entity. For purposes of this subsection (b), an
17entity controls another entity if it owns, directly or
18individually, more than 10% of the voting securities of that
19entity. As used in this subsection (b), the term "voting
20security" means a security that (1) confers upon the holder the
21right to vote for the election of members of the board of
22directors or similar governing body of the business or (2) is
23convertible into, or entitles the holder to receive upon its
24exercise, a security that confers such a right to vote. A
25general partnership interest is a voting security.
26    To require that bids and contracts include a certification

 

 

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1by the bidder or contractor that the bidder or contractor is
2not barred from bidding for or entering into a contract under
3this Section and that the bidder or contractor acknowledges
4that the school board may declare the contract void if the
5certification completed pursuant to this subsection (b) is
6false.
7    (b-5) To require all contracts and agreements that pertain
8to goods and services and that are intended to generate
9additional revenue and other remunerations for the school
10district in excess of $1,000, including without limitation
11vending machine contracts, sports and other attire, class
12rings, and photographic services, to be approved by the school
13board. The school board shall file as an attachment to its
14annual budget a report, in a form as determined by the State
15Board of Education, indicating for the prior year the name of
16the vendor, the product or service provided, and the actual net
17revenue and non-monetary remuneration from each of the
18contracts or agreements. In addition, the report shall indicate
19for what purpose the revenue was used and how and to whom the
20non-monetary remuneration was distributed.
21    (c) If the State education purchasing entity creates a
22master contract as defined in Article 28A of this Code, then
23the State education purchasing entity shall notify school
24districts of the existence of the master contract.
25    (d) In purchasing supplies, materials, equipment, or
26services that are not subject to subsection (c) of this

 

 

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1Section, before a school district solicits bids or awards a
2contract, the district may review and consider as a bid under
3subsection (a) of this Section certified education purchasing
4contracts that are already available through the State
5education purchasing entity.
6(Source: P.A. 95-990, eff. 10-3-08; 96-392, eff. 1-1-10;
796-841, eff. 12-23-09; 96-1000, eff. 7-2-10.)
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.