Public Act 095-0990
 		





SB2293 Enrolled
LRB095 18038 NHT 44121 b






    AN ACT concerning education.

 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:


 
    Section 5. The School Code is amended  by changing Sections 
10-20.21 and 34-21.3 as follows:
 


    (105 ILCS 5/10-20.21)  (from Ch. 122, par. 10-20.21)


    Sec. 10-20.21. Contracts. 

    (a)
To award all contracts for
purchase of supplies, 
materials or work or contracts with private carriers
for 
transportation of pupils involving an expenditure in excess of 
$25,000 or a lower amount as required by board policy $10,000

to the lowest responsible bidder, considering conformity with

specifications, terms of delivery, quality and serviceability, 
after due
advertisement, except the following: (i) contracts 
for the services of
individuals possessing a high degree of 
professional skill where the
ability or fitness of the 
individual plays an important part; (ii)
contracts for the 
printing of finance committee reports and departmental

reports; (iii) contracts for the printing or engraving of 
bonds, tax
warrants and other evidences of indebtedness; (iv) 
contracts for the
purchase of perishable foods and perishable 
beverages; (v) contracts for
materials and work which have been 
awarded to the lowest responsible bidder
after due 
advertisement, but due to unforeseen revisions, not the fault 
of
the contractor for materials and work, must be revised 
causing expenditures
not in excess of 10% of the contract 
price; (vi)
contracts for the maintenance or servicing of, or 
provision of
repair parts for, equipment which are made with 
the manufacturer or
authorized service agent of that equipment 
where the provision of parts,
maintenance, or servicing can 
best be performed by the manufacturer or
authorized service 
agent; (vii) purchases and contracts for the use,
purchase, 
delivery, movement, or installation of data processing 
equipment,
software, or services and telecommunications and 
interconnect
equipment, software, and services; (viii) 
contracts for duplicating
machines and supplies; (ix) 
contracts for the purchase of natural gas when
the cost is less 
than that offered by a public utility; (x) purchases of

equipment previously owned by some entity other than the 
district
itself; (xi) contracts for repair, maintenance, 
remodeling, renovation, or
construction, or a single project 
involving an expenditure not to exceed
$50,000 $20,000 and not 
involving a change or increase in the size, type, or extent
of 
an existing facility; (xii) contracts for goods or services 
procured
from another governmental agency; (xiii) contracts 
for goods or services
which are economically procurable from 
only one source, such as for the
purchase of magazines, books, 
periodicals, pamphlets and reports, and for
utility services 
such as water, light, heat, telephone or telegraph;
(xiv) where 
funds are expended in an emergency and such emergency

expenditure is approved by 3/4 of the members of the board; and 
(xv) State master contracts authorized under Article 28A of 
this Code.
    All competitive
bids for contracts involving an 
expenditure in excess of $25,000 or a lower amount as required 
by board policy $10,000 must be
sealed by the bidder and must 
be opened by a member or employee of the
school board at a 
public bid opening  at which the contents of the bids
must be 
announced. Each bidder must receive at least 3 days' notice of 
the
time and place of the bid opening. For purposes of this 
Section due
advertisement includes, but is not limited to, at 
least one public notice
at least 10 days before the bid date in 
a newspaper published in the
district, or if no newspaper is 
published in the district, in a newspaper
of general 
circulation in the area of the district. State master contracts 
and certified education purchasing contracts, as defined in 
Article 28A of this Code, are not subject to the requirements 
of this paragraph.


    (b) To require, as a condition of any contract for goods 
and services,
that persons
bidding for and awarded a contract 
and all affiliates of the person collect and
remit
Illinois Use 
Tax on all sales of tangible personal property into the State 
of
Illinois in
accordance with the provisions of the Illinois 
Use Tax Act regardless of whether
the
person or affiliate is a 
"retailer maintaining a place of business within this
State" as

defined in Section 2 of the Use Tax Act. For purposes of this 
Section, the term
"affiliate"
means any entity that (1) 
directly, indirectly, or constructively controls
another 
entity, (2)
is directly, indirectly, or constructively 
controlled by another entity, or (3)
is subject to
the control 
of a common entity. For purposes of this subsection (b), an 
entity
controls
another entity if it owns, directly or 
individually, more than 10% of the
voting
securities
of that 
entity. As used in this subsection (b), the term "voting 
security"
means a security
that (1) confers upon the holder the 
right to vote for the election of members
of the board
of 
directors or similar governing body of the business or (2) is 
convertible
into, or entitles
the holder to receive upon its 
exercise, a security that confers such a right
to
vote. A

general partnership interest is a voting security.

    To require that bids and contracts include a certification 
by the bidder
or
contractor that the bidder or contractor is 
not barred from bidding for or
entering into a
contract under 
this Section and that the bidder or contractor acknowledges 
that
the school
board may declare the contract void if the 
certification completed pursuant to
this
subsection (b) is 
false.

    (b-5) To require all contracts and agreements that pertain 
to goods and services and that are intended to generate 
additional revenue and other remunerations for the school 
district in excess of $1,000, including without limitation 
vending machine contracts, sports and other attire, class 
rings, and photographic services, to be approved by the school 
board. The school board shall file as an attachment to its 
annual budget a report, in a form as determined by the State 
Board of Education, indicating for the prior year the name of 
the vendor, the product or service provided, and the actual net 
revenue and non-monetary remuneration from each of the 
contracts or agreements.  In addition, the report shall indicate 
for what purpose the revenue was used and how and to whom the 
non-monetary remuneration was distributed.

    (c)  If the State education purchasing entity creates a 
master contract as defined in Article 28A of this Code, then 
the State education purchasing entity shall notify school 
districts of the existence of the master contract.  
    (d)   In purchasing supplies, materials, equipment, or 
services that are not subject to subsection (c) of this 
Section, before a school district solicits bids or awards a 
contract, the district may review and consider as a bid under 
subsection (a) of this Section certified education purchasing 
contracts that are already available through the State 
education purchasing entity.
(Source: P.A. 93-25, eff. 6-20-03; 93-1036, eff. 9-14-04; 
94-714, eff. 7-1-06.)

 



    (105 ILCS 5/34-21.3)  (from Ch. 122, par. 34-21.3)



    Sec. 34-21.3. Contracts. The board shall by record vote let 
all
contracts (other than those excepted
by Section 10-20.21 of 
The School Code) for supplies, materials,
work, and contracts 
with private carriers for transportation
of pupils, involving 
an expenditure in excess of $25,000 or a lower amount as 
required by board policy $10,000 by competitive
bidding as 
provided in Section 10-20.21 of The School Code.

    The board may delegate to the general superintendent of 
schools, by
resolution, the authority to approve contracts in 
amounts of $25,000 $10,000 or
less.

    For a period of one year from and after the expiration or 
other termination
of his or her term of office as a member of 
the board: (i) the former board
member shall not be eligible 
for employment nor be employed by the board, a
local school 
council, an attendance center, or any other
subdivision or 
agent of the board or the school district governed by the 
board,
and (ii) neither the board nor the chief purchasing 
officer shall let or
delegate
authority to let any contract for

services, employment, or other work to the former board member 
or to any
corporation,
partnership, association, sole 
proprietorship, or other entity other than
publicly traded 
companies from which the
former board member receives an annual 
income, dividends, or other compensation
in excess of $1,500.  
Any contract that is entered into by or under a
delegation of 
authority from the board or the chief purchasing officer shall

contain a
provision stating that
the contract is not legally 
binding on the board if entered into in violation
of the 
provisions of this paragraph.

    In addition, the State Board of Education, in consultation 
with the board,
shall (i) review existing conflict of interest 
and disclosure laws or
regulations that are applicable to the 
executive officers and governing boards
of school districts 
organized under this Article and school districts
generally, 
(ii) determine what additional disclosure and conflict of 
interest
provisions would enhance the reputation and fiscal 
integrity of the board and
the procedure under which contracts 
for goods and services are let, and (iii)
develop appropriate 
reporting forms and procedures applicable to the executive

officers, governing board, and other officials of the school 
district.

(Source: P.A. 89-15, eff. 5-30-95.)

 
    Section 10. The Public Community College Act is amended  by 
changing Sections 3-27.1 and 7-23.1 as follows:
 



    (110 ILCS 805/3-27.1)  (from Ch. 122, par. 103-27.1)



    Sec. 3-27.1. Contracts. To award all contracts for purchase 
of
supplies, materials or work involving an expenditure in 
excess of $25,000 or a lower amount as required by board policy 
$10,000 to
the lowest responsible bidder considering 
conformity with specifications,
terms of delivery, quality, 
and serviceability; after due advertisement,
except the 
following: (a) contracts for the services of individuals

possessing a high degree of professional skill where the 
ability or fitness
of the individual plays an important part; 
(b) contracts for
the printing of finance committee reports and 
departmental reports; (c)
contracts for the printing or 
engraving of bonds, tax warrants and other
evidences of 
indebtedness; (d) contracts for materials and work which
have 
been awarded to the lowest responsible bidder after due 
advertisement,
but due to unforeseen revisions, not the fault 
of the contractor for
materials and work, must be revised 
causing expenditures not in excess of
10% of the contract 
price; (e) contracts for the maintenance or servicing
of, or 
provision of repair parts for, equipment which are made with 
the
manufacturer or authorized service agent of that equipment 
where the
provision of parts, maintenance, or servicing can 
best be performed by the
manufacturer or authorized service 
agent; (f) purchases and contracts for
the use, purchase, 
delivery, movement, or installation of data processing

equipment, software, or services and telecommunications and 
inter-connect
equipment, software, and services; (g) contracts 
for duplicating machines
and supplies; (h) contracts for the 
purchase of natural gas when the cost
is less than that offered 
by a public utility; (i) purchases of equipment
previously 
owned by some entity other than the district itself; (j)

contracts for repair, maintenance, remodeling, renovation, or 
construction,
or a single project involving an expenditure not 
to exceed $50,000 $15,000 and not
involving a change or 
increase in the size, type, or extent of an existing
facility; 
(k) contracts for goods or services procured from another

governmental agency; (l) contracts for goods or services which 
are economically
procurable from only one source, such as for 
the purchase of magazines,
books, periodicals, pamphlets and 
reports, and for utility services such
as water, light, heat, 
telephone or telegraph; and (m) where funds are
expended in an 
emergency and such emergency expenditure is approved by 3/4
of 
the members of the board.

    All competitive bids for contracts involving an 
expenditure in excess of
$25,000 or a lower amount as required 
by board policy $10,000 must be sealed by the bidder and must 
be opened by a member or
employee of the board at a public bid 
opening at which the contents of the
bids must be announced. 
Each bidder must receive at least 3 days' notice of
the time 
and place of such bid opening. For purposes of this Section due

advertisement includes, but is not limited to, at least one 
public notice
at least 10 days before the bid date in a 
newspaper published in the
district, or if no newspaper is 
published in the district, in a newspaper
of general 
circulation in the area of the district.

    The provisions of this Section do not apply to guaranteed 
energy savings
contracts entered into under Article V-A.

(Source: P.A. 87-1023; 88-173.)

 



    (110 ILCS 805/7-23.1)  (from Ch. 122, par. 107-23.1)



    Sec. 7-23.1. Contracts. The board shall let all contracts 
(other than those excepted by Section
3-27.1 of this Act) for 
supplies, materials or work involving an
expenditure in excess 
of $25,000 or a lower amount as required by board policy 
$10,000 by competitive bidding as
provided in
Section 3-27.1 of 
this Act.

(Source: P.A. 92-648, eff. 7-11-02.)

 

    Section 99. Effective date. This Act takes effect upon 
becoming law.