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| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB0118 Introduced 1/29/2019, by Sen. Jason A. Barickman SYNOPSIS AS INTRODUCED:
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Amends the School Code. With regard 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 the purchase of commodities with prices affected by the trade of commodities and derivatives on a United States commodities exchange, including, but not limited to, gasoline, diesel, and natural gas (rather than contracts for the purchase of natural gas when the cost is less than that offered by a public utility).
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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 commodities with prices affected |
| 14 | | by the trade of commodities and derivatives on a United States |
| 15 | | commodities exchange, including, but not limited to, gasoline, |
| 16 | | diesel, and natural gas when
the cost is less than that offered |
| 17 | | by a public utility; (x) purchases of
equipment previously |
| 18 | | owned by some entity other than the district
itself; (xi) |
| 19 | | contracts for repair, maintenance, remodeling, renovation, or
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| 20 | | construction, or a single project involving an expenditure not |
| 21 | | to exceed
$50,000 and not involving a change or increase in the |
| 22 | | size, type, or extent
of an existing facility; (xii) contracts |
| 23 | | for goods or services procured
from another governmental |
| 24 | | agency; (xiii) contracts for goods or services
which are |
| 25 | | economically procurable from only one source, such as for the
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| 26 | | purchase of magazines, books, periodicals, pamphlets and |
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| 1 | | reports, and for
utility services such as water, light, heat, |
| 2 | | telephone or telegraph;
(xiv) where funds are expended in an |
| 3 | | emergency and such emergency
expenditure is approved by 3/4 of |
| 4 | | the members of the board; (xv) State master contracts |
| 5 | | authorized under Article 28A of this Code; and (xvi) contracts |
| 6 | | providing for the transportation of pupils, which contracts |
| 7 | | must be advertised in the same manner as competitive bids and |
| 8 | | awarded by first considering the bidder or bidders most able to |
| 9 | | provide safety and comfort for the pupils, stability of |
| 10 | | service, and any other factors set forth in the request for |
| 11 | | proposal regarding quality of service, and then price. However, |
| 12 | | at no time shall a cause of action lie against a school board |
| 13 | | for awarding a pupil transportation contract per the standards |
| 14 | | set forth in this subsection (a) unless the cause of action is |
| 15 | | based on fraudulent conduct. |
| 16 | | All competitive
bids for contracts involving an |
| 17 | | expenditure in excess of $25,000 or a lower amount as required |
| 18 | | by board policy must be
sealed by the bidder and must be opened |
| 19 | | by a member or employee of the
school board at a public bid |
| 20 | | opening at which the contents of the bids
must be announced. |
| 21 | | Each bidder must receive at least 3 days' notice of the
time |
| 22 | | and place of the bid opening. For purposes of this Section due
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| 23 | | advertisement includes, but is not limited to, at least one |
| 24 | | public notice
at least 10 days before the bid date in a |
| 25 | | newspaper published in the
district, or if no newspaper is |
| 26 | | published in the district, in a newspaper
of general |
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| 1 | | circulation in the area of the district. State master contracts |
| 2 | | and certified education purchasing contracts, as defined in |
| 3 | | Article 28A of this Code, are not subject to the requirements |
| 4 | | of this paragraph.
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| 5 | | Under this Section, the acceptance of bids sealed by a |
| 6 | | bidder and the opening of these bids at a public bid opening |
| 7 | | may be permitted by an electronic process for communicating, |
| 8 | | accepting, and opening competitive bids. However, bids for |
| 9 | | construction purposes are prohibited from being communicated, |
| 10 | | accepted, or opened electronically. An electronic bidding |
| 11 | | process must provide for, but is not limited to, the following |
| 12 | | safeguards: |
| 13 | | (1) On the date and time certain of a bid opening, the |
| 14 | | primary person conducting the competitive, sealed, |
| 15 | | electronic bid process shall log onto a specified database |
| 16 | | using a unique username and password previously assigned to |
| 17 | | the bidder to allow access to the bidder's specific bid |
| 18 | | project number. |
| 19 | | (2) The specified electronic database must be on a |
| 20 | | network that (i) is in a secure environment behind a |
| 21 | | firewall; (ii) has specific encryption tools; (iii) |
| 22 | | maintains specific intrusion detection systems; (iv) has |
| 23 | | redundant systems architecture with data storage back-up, |
| 24 | | whether by compact disc or tape; and (v) maintains a |
| 25 | | disaster recovery plan.
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| 26 | | It is the legislative intent of Public Act 96-841 to maintain |
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| 1 | | the integrity of the sealed bidding process provided for in |
| 2 | | this Section, to further limit any possibility of bid-rigging, |
| 3 | | to reduce administrative costs to school districts, and to |
| 4 | | effect efficiencies in communications with bidders. |
| 5 | | (b) To require, as a condition of any contract for goods |
| 6 | | and services,
that persons
bidding for and awarded a contract |
| 7 | | and all affiliates of the person collect and
remit
Illinois Use |
| 8 | | Tax on all sales of tangible personal property into the State |
| 9 | | of
Illinois in
accordance with the provisions of the Illinois |
| 10 | | Use Tax Act regardless of whether
the
person or affiliate is a |
| 11 | | "retailer maintaining a place of business within this
State" as
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| 12 | | defined in Section 2 of the Use Tax Act. For purposes of this |
| 13 | | Section, the term
"affiliate"
means any entity that (1) |
| 14 | | directly, indirectly, or constructively controls
another |
| 15 | | entity, (2)
is directly, indirectly, or constructively |
| 16 | | controlled by another entity, or (3)
is subject to
the control |
| 17 | | of a common entity. For purposes of this subsection (b), an |
| 18 | | entity
controls
another entity if it owns, directly or |
| 19 | | individually, more than 10% of the
voting
securities
of that |
| 20 | | entity. As used in this subsection (b), the term "voting |
| 21 | | security"
means a security
that (1) confers upon the holder the |
| 22 | | right to vote for the election of members
of the board
of |
| 23 | | directors or similar governing body of the business or (2) is |
| 24 | | convertible
into, or entitles
the holder to receive upon its |
| 25 | | exercise, a security that confers such a right
to
vote. A
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| 26 | | general partnership interest is a voting security.
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| 1 | | To require that bids and contracts include a certification |
| 2 | | by the bidder
or
contractor that the bidder or contractor is |
| 3 | | not barred from bidding for or
entering into a
contract under |
| 4 | | this Section and that the bidder or contractor acknowledges |
| 5 | | that
the school
board may declare the contract void if the |
| 6 | | certification completed pursuant to
this
subsection (b) is |
| 7 | | false.
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| 8 | | (b-5) To require all contracts and agreements that pertain |
| 9 | | to goods and services and that are intended to generate |
| 10 | | additional revenue and other remunerations for the school |
| 11 | | district in excess of $1,000, including without limitation |
| 12 | | vending machine contracts, sports and other attire, class |
| 13 | | rings, and photographic services, to be approved by the school |
| 14 | | board. The school board shall file as an attachment to its |
| 15 | | annual budget a report, in a form as determined by the State |
| 16 | | Board of Education, indicating for the prior year the name of |
| 17 | | the vendor, the product or service provided, and the actual net |
| 18 | | revenue and non-monetary remuneration from each of the |
| 19 | | contracts or agreements. In addition, the report shall indicate |
| 20 | | for what purpose the revenue was used and how and to whom the |
| 21 | | non-monetary remuneration was distributed.
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| 22 | | (b-10) To prohibit any contract to purchase food with a |
| 23 | | bidder or offeror if the bidder's or offeror's contract terms |
| 24 | | prohibit the school from donating food to food banks, |
| 25 | | including, but not limited to, homeless shelters, food |
| 26 | | pantries, and soup kitchens. |
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| 1 | | (c) If the State education purchasing entity creates a |
| 2 | | master contract as defined in Article 28A of this Code, then |
| 3 | | the State education purchasing entity shall notify school |
| 4 | | districts of the existence of the master contract. |
| 5 | | (d) In purchasing supplies, materials, equipment, or |
| 6 | | services that are not subject to subsection (c) of this |
| 7 | | Section, before a school district solicits bids or awards a |
| 8 | | contract, the district may review and consider as a bid under |
| 9 | | subsection (a) of this Section certified education purchasing |
| 10 | | contracts that are already available through the State |
| 11 | | education purchasing entity. |
| 12 | | (Source: P.A. 99-552, eff. 7-15-16.)
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