SCH CD-FOOD SERVICE CONTRACTS

Illinois General Assembly - Full Text of HB5417

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5417

Introduced 2/13/2026, by Rep. Michelle Mussman

SYNOPSIS AS INTRODUCED:

105 ILCS 5/10-20.21

Amends the School Code. In provisions concerning the award of certain
contracts to the lowest responsible bidder, provides that a contract for
goods, services, or management in the operation of a school's food service
entered into between a school board and a food service management company
shall (1) be for a duration of no longer than one year, with options for
yearly renewal of the contract not exceeding 4 additional years and (2)
include a termination clause whereby either party may cancel for cause
after a 60-day notification. Provides that all competitive bids for a
contract for goods, services, or management in the operation of a school's
food service entered into between a school board and a food service
management company are subject to standardized evaluation criteria created
by the State Board of Education for scoring that have been published on the
State Board's website in advance. Provides that the school board shall
maintain a record of the evaluation scoring, to be disclosed to all bidders
within 10 days after the date of the award of the contract.
LRB104 19557 LNS 33005 b
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
MAY APPLY

A BILL FOR

HB5417
LRB104 19557 LNS 33005 b
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;

HB5417
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LRB104 19557 LNS 33005 b
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

HB5417
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LRB104 19557 LNS 33005 b
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

HB5417
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LRB104 19557 LNS 33005 b
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 suppliers that source local food products;
10

(3) contracts that give a preference to food
11

suppliers that utilize producers that adopt hormone
12

and pest management practices recommended by the
13

United States Department of Agriculture;
14

(4) contracts that give a preference to food
15

suppliers that value animal welfare; and
16

(5) contracts that increase opportunities for
17

businesses owned and operated by minorities, women, or
18

persons with disabilities.
19

Food supplier data shall be submitted to the school
20

district at the time of the bid, to the best of the
21

bidder's ability, and updated annually thereafter during
22

the term of the contract. The contractor shall submit the
23

updated food supplier data. The data required under this
24

item (xvii) shall include the name and address of each
25

supplier, distributor, processor, and producer involved in
26

the provision of the products that the bidder is to

HB5417
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LRB104 19557 LNS 33005 b
1

supply.
2
However, at no time shall a cause of action lie against a
3
school board for awarding a pupil transportation contract per
4
the standards set forth in this subsection (a) unless the
5
cause of action is based on fraudulent conduct.
6

All competitive bids for contracts involving an
7
expenditure in excess of $35,000 or a lower amount as required
8
by board policy must be sealed by the bidder and must be opened
9
by a member or employee of the school board at a public bid
10
opening at which the contents of the bids must be announced.
11
Each bidder must receive at least 3 days' notice of the time
12
and place of the bid opening. For purposes of this Section due
13
advertisement includes, but is not limited to, at least one
14
public notice at least 10 days before the bid date in a
15
newspaper published in the district, or if no newspaper is
16
published in the district, in a newspaper of general
17
circulation in the area of the district. State master
18
contracts and certified education purchasing contracts, as
19
defined in Article 28A of this Code, are not subject to the
20
requirements of this paragraph.
21

Under this Section, the acceptance of bids sealed by a
22
bidder and the opening of these bids at a public bid opening
23
may be permitted by an electronic process for communicating,
24
accepting, and opening competitive bids. An electronic bidding
25
process must provide for, but is not limited to, the following
26
safeguards:

HB5417
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LRB104 19557 LNS 33005 b
1

(1) On the date and time certain of a bid opening, the
2

primary person conducting the competitive, sealed,
3

electronic bid process shall log onto a specified database
4

using a unique username and password previously assigned
5

to the bidder to allow access to the bidder's specific bid
6

project number.
7

(2) The specified electronic database must be on a
8

network that (i) is in a secure environment behind a
9

firewall; (ii) has specific encryption tools; (iii)
10

maintains specific intrusion detection systems; (iv) has
11

redundant systems architecture with data storage back-up,
12

whether by compact disc or tape; and (v) maintains a
13

disaster recovery plan.

14
It is the legislative intent of Public Act 96-841 to maintain
15
the integrity of the sealed bidding process provided for in
16
this Section, to further limit any possibility of bid-rigging,
17
to reduce administrative costs to school districts, and to
18
effect efficiencies in communications with bidders.
19

(b) To require, as a condition of any contract for goods
20
and services, that persons bidding for and awarded a contract
21
and all affiliates of the person collect and remit Illinois
22
Use Tax on all sales of tangible personal property into the
23
State of Illinois in accordance with the provisions of the
24
Illinois Use Tax Act regardless of whether the person or
25
affiliate is a "retailer maintaining a place of business
26
within this State" as defined in Section 2 of the Use Tax Act.

HB5417
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LRB104 19557 LNS 33005 b
1
For purposes of this Section, the term "affiliate" means any
2
entity that (1) directly, indirectly, or constructively
3
controls another entity, (2) is directly, indirectly, or
4
constructively controlled by another entity, or (3) is subject
5
to the control of a common entity. For purposes of this
6
subsection (b), an entity controls another entity if it owns,
7
directly or individually, more than 10% of the voting
8
securities of that entity. As used in this subsection (b), the
9
term "voting security" means a security that (1) confers upon
10
the holder the right to vote for the election of members of the
11
board of directors or similar governing body of the business
12
or (2) is convertible into, or entitles the holder to receive
13
upon its exercise, a security that confers such a right to
14
vote. A general partnership interest is a voting security.
15

To require that bids and contracts include a certification
16
by the bidder or contractor that the bidder or contractor is
17
not barred from bidding for or entering into a contract under
18
this Section and that the bidder or contractor acknowledges
19
that the school board may declare the contract void if the
20
certification completed pursuant to this subsection (b) is
21
false.
22

(b-5) To require all contracts and agreements that pertain
23
to goods and services and that are intended to generate
24
additional revenue and other remunerations for the school
25
district in excess of $1,000, including without limitation
26
vending machine contracts, sports and other attire, class

HB5417
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LRB104 19557 LNS 33005 b
1
rings, and photographic services, to be approved by the school
2
board. The school board shall file as an attachment to its
3
annual budget a report, in a form as determined by the State
4
Board of Education, indicating for the prior year the name of
5
the vendor, the product or service provided, and the actual
6
net revenue and non-monetary remuneration from each of the
7
contracts or agreements. In addition, the report shall
8
indicate for what purpose the revenue was used and how and to
9
whom the non-monetary remuneration was distributed.
10

(b-10) To prohibit any contract to purchase food with a
11
bidder or offeror if the bidder's or offeror's contract terms
12
prohibit the school from donating food to food banks,
13
including, but not limited to, homeless shelters, food
14
pantries, and soup kitchens.
15

(b-15) A contract for goods, services, or management in
16
the operation of a school's food service, including a school
17
that participates in any of the United States Department of
18
Agriculture's child nutrition programs, entered into between a
19
school board and a food service management company on or after
20
the effective date of this amendatory Act of the 104th General
21
Assembly shall:
22

(1) be of a duration of no longer than one year, with
23

options for yearly renewal of the contract not exceeding 4
24

additional years; and
25

(2) include a termination clause whereby either party
26

may cancel for cause after a 60-day notification.

HB5417
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LRB104 19557 LNS 33005 b
1

(b-20) All competitive bids for a contract for goods,
2
services, or management in the operation of a school's food
3
service, including a school that participates in any of the
4
United States Department of Agriculture's child nutrition
5
programs, entered into between a school board and a food
6
service management company solicited on or after the effective
7
date of this amendatory Act of the 104th General Assembly are
8
subject to standardized evaluation criteria created by the
9
State Board of Education for scoring that have been published
10
on the State Board of Education's website in advance of the
11
solicitation. The standardized evaluation criteria for scoring
12
must include at least the following:
13

(1) that any score for a bid or proposal that is
14

considered a statistical outlier be re-reviewed by an
15

uninterested third-party determined in advance by the
16

State Board of Education; and
17

(2) a requirement that financial terms in bids or
18

proposals must be evaluated by a certified public
19

accountant or an equally qualified individual employed in
20

the occupation of finance or accounting.
21

The school board shall maintain a record of the evaluation
22
scoring, to be disclosed to all bidders within 10 days after
23
the date of the award of the contract.

24

(c) If the State education purchasing entity creates a
25
master contract as defined in Article 28A of this Code, then
26
the State education purchasing entity shall notify school

HB5417
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LRB104 19557 LNS 33005 b
1
districts of the existence of the master contract.
2

(d) In purchasing supplies, materials, equipment, or
3
services that are not subject to subsection (c) of this
4
Section, before a school district solicits bids or awards a
5
contract, the district may review and consider as a bid under
6
subsection (a) of this Section certified education purchasing
7
contracts that are already available through the State
8
education purchasing entity.
9
(Source: P.A. 102-1101, eff. 6-29-22; 103-8, eff. 1-1-24
.)

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