Illinois 2023-2024 Regular Session

Illinois House Bill HB2106 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2106 Introduced , by Rep. Daniel Didech SYNOPSIS AS INTRODUCED: 105 ILCS 5/10-20.21 105 ILCS 5/34-21.3 from Ch. 122, par. 34-21.3 Amends the School Code. In provisions concerning the awarding of contracts by school boards, provides that on January 1 of each year, the State Board of Education shall adjust the amount for which a contract must be awarded to the lowest responsible bidder for inflation, as determined by the Consumer Price Index for All Urban Consumers for all items and rounded to the nearest $100. Provides that the State Board of Education shall publish this information on its official website. LRB103 04728 RJT 49737 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2106 Introduced , by Rep. Daniel Didech SYNOPSIS AS INTRODUCED: 105 ILCS 5/10-20.21 105 ILCS 5/34-21.3 from Ch. 122, par. 34-21.3 105 ILCS 5/10-20.21 105 ILCS 5/34-21.3 from Ch. 122, par. 34-21.3 Amends the School Code. In provisions concerning the awarding of contracts by school boards, provides that on January 1 of each year, the State Board of Education shall adjust the amount for which a contract must be awarded to the lowest responsible bidder for inflation, as determined by the Consumer Price Index for All Urban Consumers for all items and rounded to the nearest $100. Provides that the State Board of Education shall publish this information on its official website. LRB103 04728 RJT 49737 b LRB103 04728 RJT 49737 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2106 Introduced , by Rep. Daniel Didech SYNOPSIS AS INTRODUCED:
3	3	105 ILCS 5/10-20.21 105 ILCS 5/34-21.3 from Ch. 122, par. 34-21.3 105 ILCS 5/10-20.21 105 ILCS 5/34-21.3 from Ch. 122, par. 34-21.3
4	4	105 ILCS 5/10-20.21
5	5	105 ILCS 5/34-21.3 from Ch. 122, par. 34-21.3
6	6	Amends the School Code. In provisions concerning the awarding of contracts by school boards, provides that on January 1 of each year, the State Board of Education shall adjust the amount for which a contract must be awarded to the lowest responsible bidder for inflation, as determined by the Consumer Price Index for All Urban Consumers for all items and rounded to the nearest $100. Provides that the State Board of Education shall publish this information on its official website.
7	7	LRB103 04728 RJT 49737 b LRB103 04728 RJT 49737 b
8	8	LRB103 04728 RJT 49737 b
9	9	A BILL FOR
10	10	HB2106LRB103 04728 RJT 49737 b HB2106 LRB103 04728 RJT 49737 b
11	11	HB2106 LRB103 04728 RJT 49737 b
12	12	1 AN ACT concerning education.
13	13	2 Be it enacted by the People of the State of Illinois,
14	14	3 represented in the General Assembly:
15	15	4 Section 5. The School Code is amended by changing Sections
16	16	5 10-20.21 and 34-21.3 as follows:
17	17	6 (105 ILCS 5/10-20.21)
18	18	7 Sec. 10-20.21. Contracts.
19	19	8 (a) To award all contracts for purchase of supplies and
20	20	9 materials or work involving an expenditure in excess of
21	21	10 $25,000 or a lower amount as required by board policy to the
22	22	11 lowest responsible bidder, considering conformity with
23	23	12 specifications, terms of delivery, quality and serviceability,
24	24	13 after due advertisement, except the following:
25	25	14 (i) contracts for the services of individuals
26	26	15 possessing a high degree of professional skill where the
27	27	16 ability or fitness of the individual plays an important
28	28	17 part;
29	29	18 (ii) contracts for the printing of finance committee
30	30	19 reports and departmental reports;
31	31	20 (iii) contracts for the printing or engraving of
32	32	21 bonds, tax warrants and other evidences of indebtedness;
33	33	22 (iv) contracts for the purchase of perishable foods
34	34	23 and perishable beverages;
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38	38	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2106 Introduced , by Rep. Daniel Didech SYNOPSIS AS INTRODUCED:
39	39	105 ILCS 5/10-20.21 105 ILCS 5/34-21.3 from Ch. 122, par. 34-21.3 105 ILCS 5/10-20.21 105 ILCS 5/34-21.3 from Ch. 122, par. 34-21.3
40	40	105 ILCS 5/10-20.21
41	41	105 ILCS 5/34-21.3 from Ch. 122, par. 34-21.3
42	42	Amends the School Code. In provisions concerning the awarding of contracts by school boards, provides that on January 1 of each year, the State Board of Education shall adjust the amount for which a contract must be awarded to the lowest responsible bidder for inflation, as determined by the Consumer Price Index for All Urban Consumers for all items and rounded to the nearest $100. Provides that the State Board of Education shall publish this information on its official website.
43	43	LRB103 04728 RJT 49737 b LRB103 04728 RJT 49737 b
44	44	LRB103 04728 RJT 49737 b
45	45	A BILL FOR
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51	51	105 ILCS 5/10-20.21
52	52	105 ILCS 5/34-21.3 from Ch. 122, par. 34-21.3
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71	71	1 (v) contracts for materials and work which have been
72	72	2 awarded to the lowest responsible bidder after due
73	73	3 advertisement, but due to unforeseen revisions, not the
74	74	4 fault of the contractor for materials and work, must be
75	75	5 revised causing expenditures not in excess of 10% of the
76	76	6 contract price;
77	77	7 (vi) contracts for the maintenance or servicing of, or
78	78	8 provision of repair parts for, equipment which are made
79	79	9 with the manufacturer or authorized service agent of that
80	80	10 equipment where the provision of parts, maintenance, or
81	81	11 servicing can best be performed by the manufacturer or
82	82	12 authorized service agent;
83	83	13 (vii) purchases and contracts for the use, purchase,
84	84	14 delivery, movement, or installation of data processing
85	85	15 equipment, software, or services and telecommunications
86	86	16 and interconnect equipment, software, and services;
87	87	17 (viii) contracts for duplicating machines and
88	88	18 supplies;
89	89	19 (ix) contracts for the purchase of fuel, including
90	90	20 diesel, gasoline, oil, aviation, natural gas, or propane,
91	91	21 lubricants, or other petroleum products;
92	92	22 (x) purchases of equipment previously owned by some
93	93	23 entity other than the district itself;
94	94	24 (xi) contracts for repair, maintenance, remodeling,
95	95	25 renovation, or construction, or a single project involving
96	96	26 an expenditure not to exceed $50,000 and not involving a
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107	107	1 change or increase in the size, type, or extent of an
108	108	2 existing facility;
109	109	3 (xii) contracts for goods or services procured from
110	110	4 another governmental agency;
111	111	5 (xiii) contracts for goods or services which are
112	112	6 economically procurable from only one source, such as for
113	113	7 the purchase of magazines, books, periodicals, pamphlets
114	114	8 and reports, and for utility services such as water,
115	115	9 light, heat, telephone or telegraph;
116	116	10 (xiv) where funds are expended in an emergency and
117	117	11 such emergency expenditure is approved by 3/4 of the
118	118	12 members of the board;
119	119	13 (xv) State master contracts authorized under Article
120	120	14 28A of this Code;
121	121	15 (xvi) contracts providing for the transportation of
122	122	16 pupils, which contracts must be advertised in the same
123	123	17 manner as competitive bids and awarded by first
124	124	18 considering the bidder or bidders most able to provide
125	125	19 safety and comfort for the pupils, stability of service,
126	126	20 and any other factors set forth in the request for
127	127	21 proposal regarding quality of service, and then price; and
128	128	22 (xvii) contracts for goods, services, or management in
129	129	23 the operation of a school's food service, including a
130	130	24 school that participates in any of the United States
131	131	25 Department of Agriculture's child nutrition programs if a
132	132	26 good faith effort is made on behalf of the school district
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143	143	1 to give preference to:
144	144	2 (1) contracts that procure food that promotes the
145	145	3 health and well-being of students, in compliance with
146	146	4 United States Department of Agriculture nutrition
147	147	5 standards for school meals. Contracts should also
148	148	6 promote the production of scratch made, minimally
149	149	7 processed foods;
150	150	8 (2) contracts that give a preference to State or
151	151	9 regional suppliers that source local food products;
152	152	10 (3) contracts that give a preference to food
153	153	11 suppliers that utilize producers that adopt hormone
154	154	12 and pest management practices recommended by the
155	155	13 United States Department of Agriculture;
156	156	14 (4) contracts that give a preference to food
157	157	15 suppliers that value animal welfare; and
158	158	16 (5) contracts that increase opportunities for
159	159	17 businesses owned and operated by minorities, women, or
160	160	18 persons with disabilities.
161	161	19 Food supplier data shall be submitted to the school
162	162	20 district at the time of the bid, to the best of the
163	163	21 bidder's ability, and updated annually thereafter during
164	164	22 the term of the contract. The contractor shall submit the
165	165	23 updated food supplier data. The data required under this
166	166	24 item (xvii) shall include the name and address of each
167	167	25 supplier, distributor, processor, and producer involved in
168	168	26 the provision of the products that the bidder is to
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179	179	1 supply.
180	180	2 However, at no time shall a cause of action lie against a
181	181	3 school board for awarding a pupil transportation contract per
182	182	4 the standards set forth in this subsection (a) unless the
183	183	5 cause of action is based on fraudulent conduct.
184	184	6 All competitive bids for contracts involving an
185	185	7 expenditure in excess of $25,000 or a lower amount as required
186	186	8 by board policy must be sealed by the bidder and must be opened
187	187	9 by a member or employee of the school board at a public bid
188	188	10 opening at which the contents of the bids must be announced.
189	189	11 Each bidder must receive at least 3 days' notice of the time
190	190	12 and place of the bid opening. For purposes of this Section due
191	191	13 advertisement includes, but is not limited to, at least one
192	192	14 public notice at least 10 days before the bid date in a
193	193	15 newspaper published in the district, or if no newspaper is
194	194	16 published in the district, in a newspaper of general
195	195	17 circulation in the area of the district. State master
196	196	18 contracts and certified education purchasing contracts, as
197	197	19 defined in Article 28A of this Code, are not subject to the
198	198	20 requirements of this paragraph.
199	199	21 Under this Section, the acceptance of bids sealed by a
200	200	22 bidder and the opening of these bids at a public bid opening
201	201	23 may be permitted by an electronic process for communicating,
202	202	24 accepting, and opening competitive bids. An electronic bidding
203	203	25 process must provide for, but is not limited to, the following
204	204	26 safeguards:
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215	215	1 (1) On the date and time certain of a bid opening, the
216	216	2 primary person conducting the competitive, sealed,
217	217	3 electronic bid process shall log onto a specified database
218	218	4 using a unique username and password previously assigned
219	219	5 to the bidder to allow access to the bidder's specific bid
220	220	6 project number.
221	221	7 (2) The specified electronic database must be on a
222	222	8 network that (i) is in a secure environment behind a
223	223	9 firewall; (ii) has specific encryption tools; (iii)
224	224	10 maintains specific intrusion detection systems; (iv) has
225	225	11 redundant systems architecture with data storage back-up,
226	226	12 whether by compact disc or tape; and (v) maintains a
227	227	13 disaster recovery plan.
228	228	14 It is the legislative intent of Public Act 96-841 to maintain
229	229	15 the integrity of the sealed bidding process provided for in
230	230	16 this Section, to further limit any possibility of bid-rigging,
231	231	17 to reduce administrative costs to school districts, and to
232	232	18 effect efficiencies in communications with bidders.
233	233	19 On January 1 of each year, the State Board of Education
234	234	20 shall adjust the amount established in this subsection (a) for
235	235	21 which a contract must be awarded to the lowest responsible
236	236	22 bidder for inflation, as determined by the Consumer Price
237	237	23 Index for All Urban Consumers for all items published by the
238	238	24 Bureau of Labor Statistics of the United States Department of
239	239	25 Labor and rounded to the nearest $100. The State Board of
240	240	26 Education shall publish this information on its official
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251	251	1 website.
252	252	2 (b) To require, as a condition of any contract for goods
253	253	3 and services, that persons bidding for and awarded a contract
254	254	4 and all affiliates of the person collect and remit Illinois
255	255	5 Use Tax on all sales of tangible personal property into the
256	256	6 State of Illinois in accordance with the provisions of the
257	257	7 Illinois Use Tax Act regardless of whether the person or
258	258	8 affiliate is a "retailer maintaining a place of business
259	259	9 within this State" as defined in Section 2 of the Use Tax Act.
260	260	10 For purposes of this Section, the term "affiliate" means any
261	261	11 entity that (1) directly, indirectly, or constructively
262	262	12 controls another entity, (2) is directly, indirectly, or
263	263	13 constructively controlled by another entity, or (3) is subject
264	264	14 to the control of a common entity. For purposes of this
265	265	15 subsection (b), an entity controls another entity if it owns,
266	266	16 directly or individually, more than 10% of the voting
267	267	17 securities of that entity. As used in this subsection (b), the
268	268	18 term "voting security" means a security that (1) confers upon
269	269	19 the holder the right to vote for the election of members of the
270	270	20 board of directors or similar governing body of the business
271	271	21 or (2) is convertible into, or entitles the holder to receive
272	272	22 upon its exercise, a security that confers such a right to
273	273	23 vote. A general partnership interest is a voting security.
274	274	24 To require that bids and contracts include a certification
275	275	25 by the bidder or contractor that the bidder or contractor is
276	276	26 not barred from bidding for or entering into a contract under
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287	287	1 this Section and that the bidder or contractor acknowledges
288	288	2 that the school board may declare the contract void if the
289	289	3 certification completed pursuant to this subsection (b) is
290	290	4 false.
291	291	5 (b-5) To require all contracts and agreements that pertain
292	292	6 to goods and services and that are intended to generate
293	293	7 additional revenue and other remunerations for the school
294	294	8 district in excess of $1,000, including without limitation
295	295	9 vending machine contracts, sports and other attire, class
296	296	10 rings, and photographic services, to be approved by the school
297	297	11 board. The school board shall file as an attachment to its
298	298	12 annual budget a report, in a form as determined by the State
299	299	13 Board of Education, indicating for the prior year the name of
300	300	14 the vendor, the product or service provided, and the actual
301	301	15 net revenue and non-monetary remuneration from each of the
302	302	16 contracts or agreements. In addition, the report shall
303	303	17 indicate for what purpose the revenue was used and how and to
304	304	18 whom the non-monetary remuneration was distributed.
305	305	19 (b-10) To prohibit any contract to purchase food with a
306	306	20 bidder or offeror if the bidder's or offeror's contract terms
307	307	21 prohibit the school from donating food to food banks,
308	308	22 including, but not limited to, homeless shelters, food
309	309	23 pantries, and soup kitchens.
310	310	24 (c) If the State education purchasing entity creates a
311	311	25 master contract as defined in Article 28A of this Code, then
312	312	26 the State education purchasing entity shall notify school
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323	323	1 districts of the existence of the master contract.
324	324	2 (d) In purchasing supplies, materials, equipment, or
325	325	3 services that are not subject to subsection (c) of this
326	326	4 Section, before a school district solicits bids or awards a
327	327	5 contract, the district may review and consider as a bid under
328	328	6 subsection (a) of this Section certified education purchasing
329	329	7 contracts that are already available through the State
330	330	8 education purchasing entity.
331	331	9 (Source: P.A. 101-570, eff. 8-23-19; 101-632, eff. 6-5-20;
332	332	10 102-1101, eff. 6-29-22.)
333	333	11 (105 ILCS 5/34-21.3) (from Ch. 122, par. 34-21.3)
334	334	12 Sec. 34-21.3. Contracts. The board shall by record vote
335	335	13 let all contracts (other than those excepted by Section
336	336	14 10-20.21 of this The School Code) for supplies, materials,
337	337	15 work, and contracts with private carriers for transportation
338	338	16 of pupils, involving an expenditure in excess of $25,000 or a
339	339	17 lower amount as required by board policy by competitive
340	340	18 bidding as provided in Section 10-20.21 of this The School
341	341	19 Code.
342	342	20 The board may delegate to the general superintendent of
343	343	21 schools, by resolution, the authority to approve contracts in
344	344	22 amounts of $25,000 or less.
345	345	23 On January 1 of each year, the State Board of Education
346	346	24 shall adjust the amount established in this Section for which
347	347	25 a contract must be awarded to the lowest responsible bidder
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358	358	1 for inflation, as determined by the Consumer Price Index for
359	359	2 All Urban Consumers for all items published by the Bureau of
360	360	3 Labor Statistics of the United States Department of Labor and
361	361	4 rounded to the nearest $100. The State Board of Education
362	362	5 shall publish this information on its official website.
363	363	6 For a period of one year from and after the expiration or
364	364	7 other termination of his or her term of office as a member of
365	365	8 the board: (i) the former board member shall not be eligible
366	366	9 for employment nor be employed by the board, a local school
367	367	10 council, an attendance center, or any other subdivision or
368	368	11 agent of the board or the school district governed by the
369	369	12 board, and (ii) neither the board nor the chief purchasing
370	370	13 officer shall let or delegate authority to let any contract
371	371	14 for services, employment, or other work to the former board
372	372	15 member or to any corporation, partnership, association, sole
373	373	16 proprietorship, or other entity other than publicly traded
374	374	17 companies from which the former board member receives an
375	375	18 annual income, dividends, or other compensation in excess of
376	376	19 $1,500. Any contract that is entered into by or under a
377	377	20 delegation of authority from the board or the chief purchasing
378	378	21 officer shall contain a provision stating that the contract is
379	379	22 not legally binding on the board if entered into in violation
380	380	23 of the provisions of this paragraph.
381	381	24 In addition, the State Board of Education, in consultation
382	382	25 with the board, shall (i) review existing conflict of interest
383	383	26 and disclosure laws or regulations that are applicable to the
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394	394	1 executive officers and governing boards of school districts
395	395	2 organized under this Article and school districts generally,
396	396	3 (ii) determine what additional disclosure and conflict of
397	397	4 interest provisions would enhance the reputation and fiscal
398	398	5 integrity of the board and the procedure under which contracts
399	399	6 for goods and services are let, and (iii) develop appropriate
400	400	7 reporting forms and procedures applicable to the executive
401	401	8 officers, governing board, and other officials of the school
402	402	9 district.
403	403	10 (Source: P.A. 95-990, eff. 10-3-08.)
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