Bill Text: IL HB5591 | 2025-2026 | 104th General Assembly | Introduced
Bill Title: Amends the School Code. In a provision granting a school board the power to award certain contracts to the lowest responsible bidder, provides for an exception for contracts that give a preference to State, regional, or local suppliers (rather than only State or regional suppliers) that source local food products.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2026-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB5591 Detail]
Download: Illinois-2025-HB5591-Introduced.html
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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 Section | |||||||||||||||||||
| 5 | 10-20.21 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 | |||||||||||||||||||
| 9 | materials or work involving an expenditure in excess of | |||||||||||||||||||
| 10 | $35,000 or a lower amount as required by board policy to the | |||||||||||||||||||
| 11 | lowest responsible bidder, considering conformity with | |||||||||||||||||||
| 12 | specifications, terms of delivery, quality and serviceability, | |||||||||||||||||||
| 13 | after due advertisement, except the following: | |||||||||||||||||||
| 14 | (i) contracts for the services of individuals | |||||||||||||||||||
| 15 | possessing a high degree of professional skill where the | |||||||||||||||||||
| 16 | ability or fitness of the individual plays an important | |||||||||||||||||||
| 17 | part; | |||||||||||||||||||
| 18 | (ii) contracts for the printing of finance committee | |||||||||||||||||||
| 19 | reports and departmental reports; | |||||||||||||||||||
| 20 | (iii) contracts for the printing or engraving of | |||||||||||||||||||
| 21 | bonds, tax warrants and other evidences of indebtedness; | |||||||||||||||||||
| 22 | (iv) contracts for the purchase of perishable foods | |||||||||||||||||||
| 23 | and perishable beverages; | |||||||||||||||||||
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| 1 | (v) contracts for materials and work which have been | ||||||
| 2 | awarded to the lowest responsible bidder after due | ||||||
| 3 | advertisement, but due to unforeseen revisions, not the | ||||||
| 4 | fault of the contractor for materials and work, must be | ||||||
| 5 | revised causing expenditures not in excess of 10% of the | ||||||
| 6 | contract price; | ||||||
| 7 | (vi) contracts for the maintenance or servicing of, or | ||||||
| 8 | provision of repair parts for, equipment which are made | ||||||
| 9 | with the manufacturer or authorized service agent of that | ||||||
| 10 | equipment where the provision of parts, maintenance, or | ||||||
| 11 | servicing can best be performed by the manufacturer or | ||||||
| 12 | authorized service agent; | ||||||
| 13 | (vii) purchases and contracts for the use, purchase, | ||||||
| 14 | delivery, movement, or installation of data processing | ||||||
| 15 | equipment, software, or services and telecommunications | ||||||
| 16 | and interconnect equipment, software, and services; | ||||||
| 17 | (viii) contracts for duplicating machines and | ||||||
| 18 | supplies; | ||||||
| 19 | (ix) contracts for the purchase of fuel, including | ||||||
| 20 | diesel, gasoline, oil, aviation, natural gas, or propane, | ||||||
| 21 | lubricants, or other petroleum products; | ||||||
| 22 | (x) purchases of equipment previously owned by some | ||||||
| 23 | entity other than the district itself; | ||||||
| 24 | (xi) contracts for repair, maintenance, remodeling, | ||||||
| 25 | renovation, or construction, or a single project involving | ||||||
| 26 | an expenditure not to exceed $50,000 and not involving a | ||||||
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| 1 | change or increase in the size, type, or extent of an | ||||||
| 2 | existing facility; | ||||||
| 3 | (xii) contracts for goods or services procured from | ||||||
| 4 | another governmental agency; | ||||||
| 5 | (xiii) contracts for goods or services which are | ||||||
| 6 | economically procurable from only one source, such as for | ||||||
| 7 | the purchase of magazines, books, periodicals, pamphlets | ||||||
| 8 | and reports, and for utility services such as water, | ||||||
| 9 | light, heat, telephone or telegraph; | ||||||
| 10 | (xiv) where funds are expended in an emergency and | ||||||
| 11 | such emergency expenditure is approved by 3/4 of the | ||||||
| 12 | members of the board; | ||||||
| 13 | (xv) State master contracts authorized under Article | ||||||
| 14 | 28A of this Code; | ||||||
| 15 | (xvi) contracts providing for the transportation of | ||||||
| 16 | pupils, which contracts must be advertised in the same | ||||||
| 17 | manner as competitive bids and awarded by first | ||||||
| 18 | considering the bidder or bidders most able to provide | ||||||
| 19 | safety and comfort for the pupils, stability of service, | ||||||
| 20 | and any other factors set forth in the request for | ||||||
| 21 | proposal regarding quality of service, and then price; and | ||||||
| 22 | (xvii) contracts for goods, services, or management in | ||||||
| 23 | the operation of a school's food service, including a | ||||||
| 24 | school that participates in any of the United States | ||||||
| 25 | Department of Agriculture's child nutrition programs if a | ||||||
| 26 | good faith effort is made on behalf of the school district | ||||||
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| 1 | to give preference to: | ||||||
| 2 | (1) contracts that procure food that promotes the | ||||||
| 3 | health and well-being of students, in compliance with | ||||||
| 4 | United States Department of Agriculture nutrition | ||||||
| 5 | standards for school meals. Contracts should also | ||||||
| 6 | promote the production of scratch made, minimally | ||||||
| 7 | processed foods; | ||||||
| 8 | (2) contracts that give a preference to State, or | ||||||
| 9 | regional, or local suppliers that source local food | ||||||
| 10 | products; | ||||||
| 11 | (3) contracts that give a preference to food | ||||||
| 12 | suppliers that utilize producers that adopt hormone | ||||||
| 13 | and pest management practices recommended by the | ||||||
| 14 | United States Department of Agriculture; | ||||||
| 15 | (4) contracts that give a preference to food | ||||||
| 16 | suppliers that value animal welfare; and | ||||||
| 17 | (5) contracts that increase opportunities for | ||||||
| 18 | businesses owned and operated by minorities, women, or | ||||||
| 19 | persons with disabilities. | ||||||
| 20 | Food supplier data shall be submitted to the school | ||||||
| 21 | district at the time of the bid, to the best of the | ||||||
| 22 | bidder's ability, and updated annually thereafter during | ||||||
| 23 | the term of the contract. The contractor shall submit the | ||||||
| 24 | updated food supplier data. The data required under this | ||||||
| 25 | item (xvii) shall include the name and address of each | ||||||
| 26 | supplier, distributor, processor, and producer involved in | ||||||
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| 1 | the provision of the products that the bidder is to | ||||||
| 2 | supply. | ||||||
| 3 | However, at no time shall a cause of action lie against a | ||||||
| 4 | school board for awarding a pupil transportation contract per | ||||||
| 5 | the standards set forth in this subsection (a) unless the | ||||||
| 6 | cause of action is based on fraudulent conduct. | ||||||
| 7 | All competitive bids for contracts involving an | ||||||
| 8 | expenditure in excess of $35,000 or a lower amount as required | ||||||
| 9 | by board policy must be sealed by the bidder and must be opened | ||||||
| 10 | by a member or employee of the school board at a public bid | ||||||
| 11 | opening at which the contents of the bids must be announced. | ||||||
| 12 | Each bidder must receive at least 3 days' notice of the time | ||||||
| 13 | and place of the bid opening. For purposes of this Section due | ||||||
| 14 | advertisement includes, but is not limited to, at least one | ||||||
| 15 | public notice at least 10 days before the bid date in a | ||||||
| 16 | newspaper published in the district, or if no newspaper is | ||||||
| 17 | published in the district, in a newspaper of general | ||||||
| 18 | circulation in the area of the district. State master | ||||||
| 19 | contracts and certified education purchasing contracts, as | ||||||
| 20 | defined in Article 28A of this Code, are not subject to the | ||||||
| 21 | requirements of this paragraph. | ||||||
| 22 | Under this Section, the acceptance of bids sealed by a | ||||||
| 23 | bidder and the opening of these bids at a public bid opening | ||||||
| 24 | may be permitted by an electronic process for communicating, | ||||||
| 25 | accepting, and opening competitive bids. An electronic bidding | ||||||
| 26 | process must provide for, but is not limited to, the following | ||||||
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| 1 | safeguards: | ||||||
| 2 | (1) On the date and time certain of a bid opening, the | ||||||
| 3 | primary person conducting the competitive, sealed, | ||||||
| 4 | electronic bid process shall log onto a specified database | ||||||
| 5 | using a unique username and password previously assigned | ||||||
| 6 | to the bidder to allow access to the bidder's specific bid | ||||||
| 7 | project number. | ||||||
| 8 | (2) The specified electronic database must be on a | ||||||
| 9 | network that (i) is in a secure environment behind a | ||||||
| 10 | firewall; (ii) has specific encryption tools; (iii) | ||||||
| 11 | maintains specific intrusion detection systems; (iv) has | ||||||
| 12 | redundant systems architecture with data storage back-up, | ||||||
| 13 | whether by compact disc or tape; and (v) maintains a | ||||||
| 14 | disaster recovery plan. | ||||||
| 15 | It is the legislative intent of Public Act 96-841 to maintain | ||||||
| 16 | the integrity of the sealed bidding process provided for in | ||||||
| 17 | this Section, to further limit any possibility of bid-rigging, | ||||||
| 18 | to reduce administrative costs to school districts, and to | ||||||
| 19 | effect efficiencies in communications with bidders. | ||||||
| 20 | (b) To require, as a condition of any contract for goods | ||||||
| 21 | and services, that persons bidding for and awarded a contract | ||||||
| 22 | and all affiliates of the person collect and remit Illinois | ||||||
| 23 | Use Tax on all sales of tangible personal property into the | ||||||
| 24 | State of Illinois in accordance with the provisions of the | ||||||
| 25 | Illinois Use Tax Act regardless of whether the person or | ||||||
| 26 | affiliate is a "retailer maintaining a place of business | ||||||
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| 1 | within this State" as defined in Section 2 of the Use Tax Act. | ||||||
| 2 | For purposes of this Section, the term "affiliate" means any | ||||||
| 3 | entity that (1) directly, indirectly, or constructively | ||||||
| 4 | controls another entity, (2) is directly, indirectly, or | ||||||
| 5 | constructively controlled by another entity, or (3) is subject | ||||||
| 6 | to the control of a common entity. For purposes of this | ||||||
| 7 | subsection (b), an entity controls another entity if it owns, | ||||||
| 8 | directly or individually, more than 10% of the voting | ||||||
| 9 | securities of that entity. As used in this subsection (b), the | ||||||
| 10 | term "voting security" means a security that (1) confers upon | ||||||
| 11 | the holder the right to vote for the election of members of the | ||||||
| 12 | board of directors or similar governing body of the business | ||||||
| 13 | or (2) is convertible into, or entitles the holder to receive | ||||||
| 14 | upon its exercise, a security that confers such a right to | ||||||
| 15 | vote. A general partnership interest is a voting security. | ||||||
| 16 | To require that bids and contracts include a certification | ||||||
| 17 | by the bidder or contractor that the bidder or contractor is | ||||||
| 18 | not barred from bidding for or entering into a contract under | ||||||
| 19 | this Section and that the bidder or contractor acknowledges | ||||||
| 20 | that the school board may declare the contract void if the | ||||||
| 21 | certification completed pursuant to this subsection (b) is | ||||||
| 22 | false. | ||||||
| 23 | (b-5) To require all contracts and agreements that pertain | ||||||
| 24 | to goods and services and that are intended to generate | ||||||
| 25 | additional revenue and other remunerations for the school | ||||||
| 26 | district in excess of $1,000, including without limitation | ||||||
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| 1 | vending machine contracts, sports and other attire, class | ||||||
| 2 | rings, and photographic services, to be approved by the school | ||||||
| 3 | board. The school board shall file as an attachment to its | ||||||
| 4 | annual budget a report, in a form as determined by the State | ||||||
| 5 | Board of Education, indicating for the prior year the name of | ||||||
| 6 | the vendor, the product or service provided, and the actual | ||||||
| 7 | net revenue and non-monetary remuneration from each of the | ||||||
| 8 | contracts or agreements. In addition, the report shall | ||||||
| 9 | indicate for what purpose the revenue was used and how and to | ||||||
| 10 | whom the non-monetary remuneration was distributed. | ||||||
| 11 | (b-10) To prohibit any contract to purchase food with a | ||||||
| 12 | bidder or offeror if the bidder's or offeror's contract terms | ||||||
| 13 | prohibit the school from donating food to food banks, | ||||||
| 14 | including, but not limited to, homeless shelters, food | ||||||
| 15 | pantries, and soup kitchens. | ||||||
| 16 | (c) If the State education purchasing entity creates a | ||||||
| 17 | master contract as defined in Article 28A of this Code, then | ||||||
| 18 | the State education purchasing entity shall notify school | ||||||
| 19 | districts of the existence of the master contract. | ||||||
| 20 | (d) In purchasing supplies, materials, equipment, or | ||||||
| 21 | services that are not subject to subsection (c) of this | ||||||
| 22 | Section, before a school district solicits bids or awards a | ||||||
| 23 | contract, the district may review and consider as a bid under | ||||||
| 24 | subsection (a) of this Section certified education purchasing | ||||||
| 25 | contracts that are already available through the State | ||||||
| 26 | education purchasing entity. | ||||||
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| 1 | (Source: P.A. 102-1101, eff. 6-29-22; 103-8, eff. 1-1-24.) | ||||||
