Privatization/Subcontracting and the Law

One of the greatest issues facing ESPs today is privatization. A wide variety of companies and corporations are attempting to take over virtually all of the work traditionally performed by school district employees, from teaching to providing student transportation to cooking meals to cleaning and maintaining school buildings and grounds, and more. The National Education Association is strongly opposed to privatization because of the threat it poses to the quality of education, the accountability of public schools to the communities they serve and to the well being of children in school.

HB 1347 – PUBLIC ACT 095-0241

In 2007, the Illinois Education Association achieved a major victory in providing job protection for all ESP employees. This major achievement will make the subcontracting of ESP employees much more difficult for school district employers. Following is the exact text of Public Act 095-0241 introduced as House Bill 1347. Copy this text and review this information with your IEA UniServ Director at an Executive Board meeting of your Association. MAKE IT A PRIORITY TO KNOW THIS LAW.  

Public Act 095-0241
HB1347 Enrolled

LRB095 09063 NHT 29254 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 Section  
10-22.34c as follows:  
(105 ILCS 5/10-22.34c)  
Sec. 10-22.34c. Third party non-instructional services.  
(a) A Notwithstanding any other law of this State, nothing in  
this Code prevents a board of education may enter from entering  
into a contract with a third party for non-instructional  
services currently performed by any employee or bargaining unit  
member or lay from laying off those educational support  
personnel employees upon 90 30 days written notice to the  
affected employees , provided that:  
(1) a contract must not be entered into and become  
effective during the term of a collective bargaining  
agreement, as that term is set forth in the agreement,  
covering any employees who perform the non-instructional  
(2) a contract may only take effect upon the expiration  
of an existing collective bargaining agreement;  
(3) any third party that submits a bid to perform the  
non-instructional services shall provide the following:  
(A) evidence of liability insurance in scope and  
amount equivalent to the liability insurance provided  
by the school board pursuant to Section 10-22.3 of this  
(B) a benefits package for the third party’s  
employees who will perform the non-instructional  
services comparable to the benefits package provided  
to school board employees who perform those services;  
(C) a list of the number of employees who will  
provide the non-instructional services, the job  
classifications of those employees, and the wages the  
third party will pay those employees;  
(D) a minimum 3-year cost projection, using  
generally accepted accounting principles and which the  
third party is prohibited from increasing if the bid is  
accepted by the school board, for each and every  
expenditure category and account for performing the  
non-instructional services;  
(E) composite information about the criminal and  
disciplinary records, including alcohol or other  
substance abuse, Department of Children and Family  
Services complaints and investigations, traffic  
violations, and license revocations or any other  
licensure problems, of any employees who may perform  
the non-instructional services, provided that the  
individual names and other identifying information of  
employees need not be provided with the submission of  
the bid, but must be made available upon request of the  
school board; and  
(F) an affidavit, notarized by the president or  
chief executive officer of the third party, that each  
of its employees has completed a criminal background  
check as required by Section 10-21.9 of this Code  
within 3 months prior to submission of the bid,  
provided that the results of such background checks  
need not be provided with the submission of the bid,  
but must be made available upon request of the school  
(4) a contract must not be entered into unless the  
school board provides a cost comparison, using generally  
accepted accounting principles, of each and every  
expenditure category and account that the school board  
projects it would incur over the term of the contract if it  
continued to perform the non-instructional services using  
its own employees with each and every expenditure category  
and account that is projected a third party would incur if  
a third party performed the non-instructional services;  
(5) review and consideration of all bids by third  
parties to perform the non-instructional services shall  
take place in open session of a regularly scheduled school  
board meeting, unless the exclusive bargaining  
representative of the employees who perform the  
non-instructional services, if any such exclusive  
bargaining representative exists, agrees in writing that  
such review and consideration can take place in open  
session at a specially scheduled school board meeting;  
(6) a minimum of one public hearing, conducted by the  
school board prior to a regularly scheduled school board  
meeting, to discuss the school board’s proposal to contract  
with a third party to perform the non-instructional  
services must be held before the school board may enter  
into such a contract; the school board must provide notice  
to the public of the date, time, and location of the first  
public hearing on or before the initial date that bids to  
provide the non-instructional services are solicited or a  
minimum of 30 days prior to entering into such a contract,  
whichever provides a greater period of notice;  
(7) a contract shall contain provisions requiring the  
contractor to offer available employee positions pursuant  
to the contract to qualified school district employees  
whose employment is terminated because of the contract; and  
(8) a contract shall contain provisions requiring the  
contractor to comply with a policy of nondiscrimination and  
equal employment opportunity for all persons and to take  
affirmative steps to provide equal opportunity for all  
(b) Notwithstanding subsection (a) of this Section, a board  
of education may enter into a contract, of no longer than 3  
months in duration, with a third party for non-instructional  
services currently performed by an employee or bargaining unit  
member for the purpose of augmenting the current workforce in  
an emergency situation that threatens the safety or health of  
the school district’s students or staff, provided that the  
school board meets all of its obligations under the Illinois  
Educational Labor Relations Act.  
(c) The changes to this Section made by this amendatory Act  
of the 95th General Assembly are not applicable to  
non-instructional services of a school district that on the  
effective date of this amendatory Act of the 95th General  
Assembly are performed for the school district by a third  
(Source: P.A. 90-548, eff. 1-1-98.)  
Section 90. The State Mandates Act is amended by adding  
Section 8.31 as follows:  
(30 ILCS 805/8.31 new)  
Sec. 8.31. Exempt mandate. Notwithstanding Sections 6 and 8  
of this Act, no reimbursement by the State is required for the  
implementation of any mandate created by this amendatory Act of  
the 95th General Assembly.  
Section 99. Effective date. This Act takes effect upon  
becoming law.  

Effective Date: 8/17/2007

Floor Actions




Public Act . . . . . . . . .095-0241