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SB 3503

SCH CD-FOOD SERVICE CONTRACTS

104th Regular Session Introduced by Christopher Belt and 4 co-sponsors

SB3503 shortens school food-service contracts, requires standardized bid scoring, favors local/healthy suppliers, and mandates transparent evaluation and revenue reporting.

Senate Committee Amendment No. 1 Rule 3-9(a) / Re-referred to Assignments
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Bill Summary · SB 3503

Summary of SB3503 (104th Illinois General Assembly) — SCH CD-FOOD SERVICE CONTRACTS

Purpose and intent

SB3503 seeks to reform how school food-service contracts are awarded and evaluated in Illinois. The bill adds specific requirements for contracts between school boards and food service management companies, with aims to increase accountability, transparency, local/regional sourcing, health/nutrition standards, and equity in contracting.

Key provisions and changes

Contract duration and termination (new subsection: b-15)

  • Any contract for goods, services, or management in the operation of a school’s food service (including schools participating in USDA child nutrition programs) entered into on or after the act’s effective date:
    • Must have a duration of no more than one year, with options to renew yearly for up to 4 additional years.
    • Must include a termination clause allowing either party to cancel for cause after a 60-day notice.

Standardized evaluation criteria (new subsection: b-20)

  • All competitive bids for school food-service contracts solicited on or after the act’s effective date must be evaluated using standardized criteria created by the State Board of Education (SBE) and published in advance on the SBE website.
  • The scoring criteria must include:
    • Re-review of any bid scores identified as statistical outliers by an impartial third party (pre-determined by the SBE).
    • A requirement that financial terms be evaluated by a certified public accountant (CPA) or an equivalently qualified finance/accounting professional.
  • The school board must maintain a record of the evaluation scoring and disclose it to all bidders within 10 days after contract award.

Food-sourcing preferences and data reporting (existing subsection a; expanded scope)

  • The bill continues to allow boards to award contracts to the lowest responsible bidder, with multiple standard exceptions (e.g., perishable foods, data processing equipment, emergency expenditures, etc.).
  • A new emphasis within the competitive-bid framework requires consideration of:
    • Preference for foods that promote student health in line with USDA standards.
    • Preference for state/regional suppliers and local food sourcing.
    • Preference for suppliers using hormone/pest-management practices recommended by the USDA.
    • Preference for suppliers with strong animal-welfare practices.
    • Preference for participation by minority, women, or persons with disabilities-owned businesses.
  • For food-supplier data, bids must include, to the best of the bidder’s ability, the name and address of all suppliers involved, with annual updates during the contract term.

Prohibition on certain revenue-generating contracts (b-5)

  • Requires reporting on contracts and agreements that generate additional revenue or remuneration for the district (e.g., vending, apparel, or photography services) in the district’s annual budget, including details on vendors and how revenues are used.

Prohibitions on food-donation contracting (b-10)

  • Bars contracts for purchasing food if the terms prohibit the district from donating food to food banks or shelters.

Additional procedural notes

  • The act references updated guidelines and procedures to ensure sealed bidding integrity, including electronic bidding safeguards and a public bid-opening process with notice requirements.

Who/what is affected

  • Illinois school districts and boards that enter into food-service contracts.
  • Food service management companies bidding on school food-service contracts.
  • The State Board of Education, which will publish standardized evaluation criteria.
  • Vendors and suppliers supplying school food, equipment, or related services.

Procedural and timeline aspects

  • Effective date: The amendments apply to contracts entered on or after the act’s effective date (not specified in the excerpt; would be the act’s enactment date).
  • Competitive bids: Subject to the standardized evaluation criteria published in advance by the SBE; bid records must be disclosed within 10 days of award.
  • Bid processes may utilize electronic bidding with specified security safeguards.

Overall, SB3503 tightens control over school food-service contracting, emphasizing shorter initial terms, clear termination rights, standardized and transparent bid scoring, nutritional and local-sourcing preferences, supplier accountability, and revenue-reporting requirements.

Compiled from official sources — confirm details with the bill’s official record.

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