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| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB2637 Introduced , by Rep. Fred Crespo SYNOPSIS AS INTRODUCED:
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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.
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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 | | (c) If the State education purchasing entity creates a |
| 24 | | master contract as defined in Article 28A of this Code, then |
| 25 | | the State education purchasing entity shall notify school |
| 26 | | districts of the existence of the master contract. |
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| 1 | | (d) In purchasing supplies, materials, equipment, or |
| 2 | | services that are not subject to subsection (c) of this |
| 3 | | Section, before a school district solicits bids or awards a |
| 4 | | contract, the district may review and consider as a bid under |
| 5 | | subsection (a) of this Section certified education purchasing |
| 6 | | contracts that are already available through the State |
| 7 | | education purchasing entity. |
| 8 | | (Source: P.A. 96-392, eff. 1-1-10; 96-841, eff. 12-23-09; |
| 9 | | 96-1000, eff. 7-2-10; 97-951, eff. 8-13-12.)
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| 10 | | Section 99. Effective date. This Act takes effect upon |
| 11 | | becoming law.
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