Bill Text: IL HB2788 | 2017-2018 | 100th General Assembly | Introduced
Bill Title: Amends the School Code. With respect to the requirement that all 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 school board policy be awarded to the lowest responsible bidder, exempts contracts for goods or services procured through a cooperative organized in any state in the United States of America or the District of Columbia that awards contracts by a competitive process and whose membership is limited to governmental agencies. Effective immediately.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2019-01-08 - Session Sine Die [HB2788 Detail]
Download: Illinois-2017-HB2788-Introduced.html
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1 | AN ACT concerning education.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The School Code is amended by changing Section | ||||||||||||||||||||||||
5 | 10-20.21 as follows:
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6 | (105 ILCS 5/10-20.21)
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7 | Sec. 10-20.21. Contracts.
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8 | (a)
To award all contracts for
purchase of supplies and | ||||||||||||||||||||||||
9 | materials or work involving an expenditure in excess of $25,000 | ||||||||||||||||||||||||
10 | or a lower amount as required by board policy
to the lowest | ||||||||||||||||||||||||
11 | responsible bidder, considering conformity with
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12 | specifications, terms of delivery, quality and serviceability, | ||||||||||||||||||||||||
13 | after due
advertisement, except the following: (i) contracts | ||||||||||||||||||||||||
14 | for the services of
individuals possessing a high degree of | ||||||||||||||||||||||||
15 | professional skill where the
ability or fitness of the | ||||||||||||||||||||||||
16 | individual plays an important part; (ii)
contracts for the | ||||||||||||||||||||||||
17 | printing of finance committee reports and departmental
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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 |
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1 | of
the contractor for materials and work, must be revised | ||||||
2 | causing expenditures
not in excess of 10% of the contract | ||||||
3 | price; (vi)
contracts for the maintenance or servicing of, or | ||||||
4 | provision of
repair parts for, equipment which are made with | ||||||
5 | the manufacturer or
authorized service agent of that equipment | ||||||
6 | where the provision of parts,
maintenance, or servicing can | ||||||
7 | best be performed by the manufacturer or
authorized service | ||||||
8 | agent; (vii) purchases and contracts for the use,
purchase, | ||||||
9 | delivery, movement, or installation of data processing | ||||||
10 | equipment,
software, or services and telecommunications and | ||||||
11 | interconnect
equipment, software, and services; (viii) | ||||||
12 | contracts for duplicating
machines and supplies; (ix) | ||||||
13 | contracts for the purchase of natural gas when
the cost is less | ||||||
14 | than that offered by a public utility; (x) purchases of
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15 | equipment previously owned by some entity other than the | ||||||
16 | district
itself; (xi) contracts for repair, maintenance, | ||||||
17 | remodeling, renovation, or
construction, or a single project | ||||||
18 | involving an expenditure not to exceed
$50,000 and not | ||||||
19 | involving a change or increase in the size, type, or extent
of | ||||||
20 | an existing facility; (xii) contracts for goods or services | ||||||
21 | procured
from another governmental agency or through a | ||||||
22 | cooperative organized in any state in the United States of | ||||||
23 | America or the District of Columbia that awards contracts by a | ||||||
24 | competitive process and whose membership is limited to | ||||||
25 | governmental agencies ; (xiii) contracts for goods or services
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26 | which are economically procurable from only one source, such as |
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1 | for the
purchase of magazines, books, periodicals, pamphlets | ||||||
2 | and reports, and for
utility services such as water, light, | ||||||
3 | heat, telephone or telegraph;
(xiv) where funds are expended in | ||||||
4 | an emergency and such emergency
expenditure is approved by 3/4 | ||||||
5 | of the members of the board; (xv) State master contracts | ||||||
6 | authorized under Article 28A of this Code; and (xvi) contracts | ||||||
7 | providing for the transportation of pupils, which contracts | ||||||
8 | must be advertised in the same manner as competitive bids and | ||||||
9 | awarded by first considering the bidder or bidders most able to | ||||||
10 | provide safety and comfort for the pupils, stability of | ||||||
11 | service, and any other factors set forth in the request for | ||||||
12 | proposal regarding quality of service, and then price. However, | ||||||
13 | at no time shall a cause of action lie against a school board | ||||||
14 | for awarding a pupil transportation contract per the standards | ||||||
15 | set forth in this subsection (a) unless the cause of action is | ||||||
16 | based on fraudulent conduct. | ||||||
17 | All competitive
bids for contracts involving an | ||||||
18 | expenditure in excess of $25,000 or a lower amount as required | ||||||
19 | by board policy must be
sealed by the bidder and must be opened | ||||||
20 | by a member or employee of the
school board at a public bid | ||||||
21 | opening at which the contents of the bids
must be announced. | ||||||
22 | Each bidder must receive at least 3 days' notice of the
time | ||||||
23 | and place of the bid opening. For purposes of this Section due
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24 | advertisement includes, but is not limited to, at least one | ||||||
25 | public notice
at least 10 days before the bid date in a | ||||||
26 | newspaper published in the
district, or if no newspaper is |
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1 | published in the district, in a newspaper
of general | ||||||
2 | circulation in the area of the district. State master contracts | ||||||
3 | and certified education purchasing contracts, as defined in | ||||||
4 | Article 28A of this Code, are not subject to the requirements | ||||||
5 | of this paragraph.
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6 | Under this Section, the acceptance of bids sealed by a | ||||||
7 | bidder and the opening of these bids at a public bid opening | ||||||
8 | may be permitted by an electronic process for communicating, | ||||||
9 | accepting, and opening competitive bids. However, bids for | ||||||
10 | construction purposes are prohibited from being communicated, | ||||||
11 | accepted, or opened electronically. An electronic bidding | ||||||
12 | process must provide for, but is not limited to, the following | ||||||
13 | safeguards: | ||||||
14 | (1) On the date and time certain of a bid opening, the | ||||||
15 | primary person conducting the competitive, sealed, | ||||||
16 | electronic bid process shall log onto a specified database | ||||||
17 | using a unique username and password previously assigned to | ||||||
18 | the bidder to allow access to the bidder's specific bid | ||||||
19 | project number. | ||||||
20 | (2) The specified electronic database must be on a | ||||||
21 | network that (i) is in a secure environment behind a | ||||||
22 | firewall; (ii) has specific encryption tools; (iii) | ||||||
23 | maintains specific intrusion detection systems; (iv) has | ||||||
24 | redundant systems architecture with data storage back-up, | ||||||
25 | whether by compact disc or tape; and (v) maintains a | ||||||
26 | disaster recovery plan.
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1 | It is the legislative intent of Public Act 96-841 to maintain | ||||||
2 | the integrity of the sealed bidding process provided for in | ||||||
3 | this Section, to further limit any possibility of bid-rigging, | ||||||
4 | to reduce administrative costs to school districts, and to | ||||||
5 | effect efficiencies in communications with bidders. | ||||||
6 | (b) To require, as a condition of any contract for goods | ||||||
7 | and services,
that persons
bidding for and awarded a contract | ||||||
8 | and all affiliates of the person collect and
remit
Illinois Use | ||||||
9 | Tax on all sales of tangible personal property into the State | ||||||
10 | of
Illinois in
accordance with the provisions of the Illinois | ||||||
11 | Use Tax Act regardless of whether
the
person or affiliate is a | ||||||
12 | "retailer maintaining a place of business within this
State" as
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13 | defined in Section 2 of the Use Tax Act. For purposes of this | ||||||
14 | Section, the term
"affiliate"
means any entity that (1) | ||||||
15 | directly, indirectly, or constructively controls
another | ||||||
16 | entity, (2)
is directly, indirectly, or constructively | ||||||
17 | controlled by another entity, or (3)
is subject to
the control | ||||||
18 | of a common entity. For purposes of this subsection (b), an | ||||||
19 | entity
controls
another entity if it owns, directly or | ||||||
20 | individually, more than 10% of the
voting
securities
of that | ||||||
21 | entity. As used in this subsection (b), the term "voting | ||||||
22 | security"
means a security
that (1) confers upon the holder the | ||||||
23 | right to vote for the election of members
of the board
of | ||||||
24 | directors or similar governing body of the business or (2) is | ||||||
25 | convertible
into, or entitles
the holder to receive upon its | ||||||
26 | exercise, a security that confers such a right
to
vote. A
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1 | general partnership interest is a voting security.
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2 | To require that bids and contracts include a certification | ||||||
3 | by the bidder
or
contractor that the bidder or contractor is | ||||||
4 | not barred from bidding for or
entering into a
contract under | ||||||
5 | this Section and that the bidder or contractor acknowledges | ||||||
6 | that
the school
board may declare the contract void if the | ||||||
7 | certification completed pursuant to
this
subsection (b) is | ||||||
8 | false.
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9 | (b-5) To require all contracts and agreements that pertain | ||||||
10 | to goods and services and that are intended to generate | ||||||
11 | additional revenue and other remunerations for the school | ||||||
12 | district in excess of $1,000, including without limitation | ||||||
13 | vending machine contracts, sports and other attire, class | ||||||
14 | rings, and photographic services, to be approved by the school | ||||||
15 | board. The school board shall file as an attachment to its | ||||||
16 | annual budget a report, in a form as determined by the State | ||||||
17 | Board of Education, indicating for the prior year the name of | ||||||
18 | the vendor, the product or service provided, and the actual net | ||||||
19 | revenue and non-monetary remuneration from each of the | ||||||
20 | contracts or agreements. In addition, the report shall indicate | ||||||
21 | for what purpose the revenue was used and how and to whom the | ||||||
22 | non-monetary remuneration was distributed.
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23 | (b-10) To prohibit any contract to purchase food with a | ||||||
24 | bidder or offeror if the bidder's or offeror's contract terms | ||||||
25 | prohibit the school from donating food to food banks, | ||||||
26 | including, but not limited to, homeless shelters, food |
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1 | pantries, and soup kitchens. | ||||||
2 | (c) If the State education purchasing entity creates a | ||||||
3 | master contract as defined in Article 28A of this Code, then | ||||||
4 | the State education purchasing entity shall notify school | ||||||
5 | districts of the existence of the master contract. | ||||||
6 | (d) In purchasing supplies, materials, equipment, or | ||||||
7 | services that are not subject to subsection (c) of this | ||||||
8 | Section, before a school district solicits bids or awards a | ||||||
9 | contract, the district may review and consider as a bid under | ||||||
10 | subsection (a) of this Section certified education purchasing | ||||||
11 | contracts that are already available through the State | ||||||
12 | education purchasing entity. | ||||||
13 | (Source: P.A. 99-552, eff. 7-15-16.)
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14 | Section 99. Effective date. This Act takes effect upon | ||||||
15 | becoming law.
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