Illinois General Assembly - Full Text of HB3480
Illinois General Assembly

Previous General Assemblies

Full Text of HB3480  94th General Assembly



HB3480 Enrolled LRB094 11248 RAS 41990 b

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 17-1 as follows:
6     (105 ILCS 5/10-20.21)  (from Ch. 122, par. 10-20.21)
7     Sec. 10-20.21. Contracts.
8     (a) To award all contracts for purchase of supplies,
9 materials or work or contracts with private carriers for
10 transportation of pupils involving an expenditure in excess of
11 $10,000 to the lowest responsible bidder, considering
12 conformity with specifications, terms of delivery, quality and
13 serviceability, after due advertisement, except the following:
14 (i) contracts for the services of individuals possessing a high
15 degree of professional skill where the ability or fitness of
16 the individual plays an important part; (ii) contracts for the
17 printing of finance committee reports and departmental
18 reports; (iii) contracts for the printing or engraving of
19 bonds, tax warrants and other evidences of indebtedness; (iv)
20 contracts for the purchase of perishable foods and perishable
21 beverages; (v) contracts for materials and work which have been
22 awarded to the lowest responsible bidder after due
23 advertisement, but due to unforeseen revisions, not the fault
24 of the contractor for materials and work, must be revised
25 causing expenditures not in excess of 10% of the contract
26 price; (vi) contracts for the maintenance or servicing of, or
27 provision of repair parts for, equipment which are made with
28 the manufacturer or authorized service agent of that equipment
29 where the provision of parts, maintenance, or servicing can
30 best be performed by the manufacturer or authorized service
31 agent; (vii) purchases and contracts for the use, purchase,
32 delivery, movement, or installation of data processing



HB3480 Enrolled - 2 - LRB094 11248 RAS 41990 b

1 equipment, software, or services and telecommunications and
2 interconnect equipment, software, and services; (viii)
3 contracts for duplicating machines and supplies; (ix)
4 contracts for the purchase of natural gas when the cost is less
5 than that offered by a public utility; (x) purchases of
6 equipment previously owned by some entity other than the
7 district itself; (xi) contracts for repair, maintenance,
8 remodeling, renovation, or construction, or a single project
9 involving an expenditure not to exceed $20,000 and not
10 involving a change or increase in the size, type, or extent of
11 an existing facility; (xii) contracts for goods or services
12 procured from another governmental agency; (xiii) contracts
13 for goods or services which are economically procurable from
14 only one source, such as for the purchase of magazines, books,
15 periodicals, pamphlets and reports, and for utility services
16 such as water, light, heat, telephone or telegraph; (xiv) where
17 funds are expended in an emergency and such emergency
18 expenditure is approved by 3/4 of the members of the board; and
19 (xv) State master contracts authorized under Article 28A of
20 this Code.
21     All competitive bids for contracts involving an
22 expenditure in excess of $10,000 must be sealed by the bidder
23 and must be opened by a member or employee of the school board
24 at a public bid opening at which the contents of the bids must
25 be announced. Each bidder must receive at least 3 days' notice
26 of the time and place of the bid opening. For purposes of this
27 Section due advertisement includes, but is not limited to, at
28 least one public notice at least 10 days before the bid date in
29 a newspaper published in the district, or if no newspaper is
30 published in the district, in a newspaper of general
31 circulation in the area of the district. State master contracts
32 and certified education purchasing contracts, as defined in
33 Article 28A of this Code, are not subject to the requirements
34 of this paragraph.
35     (b) To require, as a condition of any contract for goods
36 and services, that persons bidding for and awarded a contract



HB3480 Enrolled - 3 - LRB094 11248 RAS 41990 b

1 and all affiliates of the person collect and remit Illinois Use
2 Tax on all sales of tangible personal property into the State
3 of Illinois in accordance with the provisions of the Illinois
4 Use Tax Act regardless of whether the person or affiliate is a
5 "retailer maintaining a place of business within this State" as
6 defined in Section 2 of the Use Tax Act. For purposes of this
7 Section, the term "affiliate" means any entity that (1)
8 directly, indirectly, or constructively controls another
9 entity, (2) is directly, indirectly, or constructively
10 controlled by another entity, or (3) is subject to the control
11 of a common entity. For purposes of this subsection (b), an
12 entity controls another entity if it owns, directly or
13 individually, more than 10% of the voting securities of that
14 entity. As used in this subsection (b), the term "voting
15 security" means a security that (1) confers upon the holder the
16 right to vote for the election of members of the board of
17 directors or similar governing body of the business or (2) is
18 convertible into, or entitles the holder to receive upon its
19 exercise, a security that confers such a right to vote. A
20 general partnership interest is a voting security.
21     To require that bids and contracts include a certification
22 by the bidder or contractor that the bidder or contractor is
23 not barred from bidding for or entering into a contract under
24 this Section and that the bidder or contractor acknowledges
25 that the school board may declare the contract void if the
26 certification completed pursuant to this subsection (b) is
27 false.
28     (b-5) To require all contracts and agreements that pertain
29 to goods and services and that are intended to generate
30 additional revenue and other remunerations for the school
31 district in excess of $1,000, including without limitation
32 vending machine contracts, sports and other attire, class
33 rings, and photographic services, to be approved by the school
34 board.
35     (c) If the State education purchasing entity creates a
36 master contract as defined in Article 28A of this Code, then



HB3480 Enrolled - 4 - LRB094 11248 RAS 41990 b

1 the State education purchasing entity shall notify school
2 districts of the existence of the master contract.
3     (d) In purchasing supplies, materials, equipment, or
4 services that are not subject to subsection (c) of this
5 Section, before a school district solicits bids or awards a
6 contract, the district may review and consider as a bid under
7 subsection (a) of this Section certified education purchasing
8 contracts that are already available through the State
9 education purchasing entity.
10 (Source: P.A. 93-25, eff. 6-20-03; 93-1036, eff. 9-14-04.)
11     (105 ILCS 5/17-1)  (from Ch. 122, par. 17-1)
12     Sec. 17-1. Annual Budget. The board of education of each
13 school district under 500,000 inhabitants shall, within or
14 before the first quarter of each fiscal year, adopt an annual
15 budget which it deems necessary to defray all necessary
16 expenses and liabilities of the district, and in such annual
17 budget shall specify the objects and purposes of each item and
18 amount needed for each object or purpose.
19     The budget shall be entered upon a School District Budget
20 form prepared and provided by the State Board of Education and
21 therein shall contain (i) a statement of the cash on hand from
22 taxes at the beginning of the fiscal year and a statement of
23 the cash on hand from all other itemized sources, including
24 without limitation vending machines, at the beginning of the
25 fiscal year; (ii) , an estimate of the cash expected to be
26 received from taxes during such fiscal year and an estimate of
27 the cash expected to be received from all other itemized
28 sources, including without limitation vending machines, during
29 such fiscal year; (iii) from all sources, an estimate of the
30 expenditures from tax revenues contemplated for such fiscal
31 year and an estimate of the expenditures from revenues from all
32 other itemized sources, including without limitation vending
33 machines, contemplated for such fiscal year; (iv) , and a
34 statement of the estimated cash from taxes expected to be on
35 hand at the end of such year and a statement of the estimated



HB3480 Enrolled - 5 - LRB094 11248 RAS 41990 b

1 cash from all other itemized sources, including without
2 limitation vending machines, expected to be on hand at the end
3 of such year; and (v) a statement disclosing all school
4 board-sanctioned contractual agreements and estimated revenue
5 expected to be received as a result of these contracts. The
6 estimate of taxes to be received may be based upon the amount
7 of actual cash receipts that may reasonably be expected by the
8 district during such fiscal year, estimated from the experience
9 of the district in prior years and with due regard for other
10 circumstances that may substantially affect such receipts.
11 Nothing in this Section shall be construed as requiring any
12 district to change or preventing any district from changing
13 from a cash basis of financing to a surplus or deficit basis of
14 financing; or as requiring any district to change or preventing
15 any district from changing its system of accounting.
16     The board of education of each district shall fix a fiscal
17 year therefor. If the beginning of the fiscal year of a
18 district is subsequent to the time that the tax levy due to be
19 made in such fiscal year shall be made, then such annual budget
20 shall be adopted prior to the time such tax levy shall be made.
21 The failure by a board of education of any district to adopt an
22 annual budget, or to comply in any respect with the provisions
23 of this Section, shall not affect the validity of any tax levy
24 of the district otherwise in conformity with the law. With
25 respect to taxes levied either before, on, or after the
26 effective date of this amendatory Act of the 91st General
27 Assembly, (i) a tax levy is made for the fiscal year in which
28 the levy is due to be made regardless of which fiscal year the
29 proceeds of the levy are expended or are intended to be
30 expended, and (ii) except as otherwise provided by law, a board
31 of education's adoption of an annual budget in conformity with
32 this Section is not a prerequisite to the adoption of a valid
33 tax levy and is not a limit on the amount of the levy.
34     Such budget shall be prepared in tentative form by some
35 person or persons designated by the board, and in such
36 tentative form shall be made conveniently available to public



HB3480 Enrolled - 6 - LRB094 11248 RAS 41990 b

1 inspection for at least 30 days prior to final action thereon.
2 At least 1 public hearing shall be held as to such budget prior
3 to final action thereon. Notice of availability for public
4 inspection and of such public hearing shall be given by
5 publication in a newspaper published in such district, at least
6 30 days prior to the time of such hearing. If there is no
7 newspaper published in such district, notice of such public
8 hearing shall be given by posting notices thereof in 5 of the
9 most public places in such district. It shall be the duty of
10 the secretary of such board to make such tentative budget
11 available to public inspection, and to arrange for such public
12 hearing. The board may from time to time make transfers between
13 the various items in any fund not exceeding in the aggregate
14 10% of the total of such fund as set forth in the budget. The
15 board may from time to time amend such budget by the same
16 procedure as is herein provided for its original adoption.
17     Beginning July 1, 1976, the board of education, or regional
18 superintendent, or governing board responsible for the
19 administration of a joint agreement shall, by September 1 of
20 each fiscal year thereafter, adopt an annual budget for the
21 joint agreement in the same manner and subject to the same
22 requirements as are provided in this Section.
23     The State Board of Education shall exercise powers and
24 duties relating to budgets as provided in Section 2--3.27 of
25 this Act.
26     By fiscal year 1982 all school districts shall use the
27 Program Budget Accounting System.
28     In the case of a school district receiving emergency State
29 financial assistance under Article 1B, the school board shall
30 also be subject to the requirements established under Article
31 1B with respect to the annual budget.
32 (Source: P.A. 91-75, eff. 7-9-99.)
33     Section 90. The State Mandates Act is amended by adding
34 Section 8.29 as follows:



HB3480 Enrolled - 7 - LRB094 11248 RAS 41990 b

1     (30 ILCS 805/8.29 new)
2     Sec. 8.29. Exempt mandate. Notwithstanding Sections 6 and 8
3 of this Act, no reimbursement by the State is required for the
4 implementation of any mandate created by this amendatory Act of
5 the 94th General Assembly.
6     Section 99. Effective date. This Act takes effect upon
7 becoming law.