98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB5812

 

Introduced , by Rep. Brian W. Stewart

 

SYNOPSIS AS INTRODUCED:
 
50 ILCS 105/3  from Ch. 102, par. 3
55 ILCS 5/5-3003 new

    Amends the Public Officer Prohibited Activities Act. Provides that a county officer may hold a position on the board of a not-for-profit corporation that is interested in a contract, work, or business of the county. Sets forth the limitations of participation if a county officer is appointed by the governing body of the county to represent the interests of the county on the board of a not-for-profit corporation. Sets forth the limitations of participation if a county officer is not appointed to the governing body of a not-for-profit corporation by the governing body of the county. Makes conforming changes in the Counties Code.


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A BILL FOR

 

HB5812LRB098 18013 JLK 53140 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Public Officer Prohibited Activities Act is
5amended by changing Section 3 as follows:
 
6    (50 ILCS 105/3)  (from Ch. 102, par. 3)
7    Sec. 3. Prohibited interest in contracts.
8    (a) No person holding any office, either by election or
9appointment under the laws or Constitution of this State, may
10be in any manner financially interested directly in his own
11name or indirectly in the name of any other person,
12association, trust, or corporation, in any contract or the
13performance of any work in the making or letting of which such
14officer may be called upon to act or vote. No such officer may
15represent, either as agent or otherwise, any person,
16association, trust, or corporation, with respect to any
17application or bid for any contract or work in regard to which
18such officer may be called upon to vote. Nor may any such
19officer take or receive, or offer to take or receive, either
20directly or indirectly, any money or other thing of value as a
21gift or bribe or means of influencing his vote or action in his
22official character. Any contract made and procured in violation
23hereof is void. This Section shall not apply to any person

 

 

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1serving on an advisory panel or commission, to any director
2serving on a hospital district board as provided under
3subsection (a-5) of Section 13 of the Hospital District Law, or
4to any person serving as both a contractual employee and as a
5member of a public hospital board as provided under Article 11
6of the Illinois Municipal Code in a municipality with a
7population between 13,000 and 16,000 that is located in a
8county with a population between 50,000 and 70,000.
9    (b) However, any elected or appointed member of the
10governing body may provide materials, merchandise, property,
11services, or labor, subject to the following provisions under
12either paragraph (1) or (2):
13        (1) If:
14            A. the contract is with a person, firm,
15        partnership, association, corporation, or cooperative
16        association in which such interested member of the
17        governing body of the municipality has less than a 7
18        1/2% share in the ownership; and
19            B. such interested member publicly discloses the
20        nature and extent of his interest prior to or during
21        deliberations concerning the proposed award of the
22        contract; and
23            C. such interested member abstains from voting on
24        the award of the contract, though he shall be
25        considered present for the purposes of establishing a
26        quorum; and

 

 

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1            D. such contract is approved by a majority vote of
2        those members presently holding office; and
3            E. the contract is awarded after sealed bids to the
4        lowest responsible bidder if the amount of the contract
5        exceeds $1500, or awarded without bidding if the amount
6        of the contract is less than $1500; and
7            F. the award of the contract would not cause the
8        aggregate amount of all such contracts so awarded to
9        the same person, firm, association, partnership,
10        corporation, or cooperative association in the same
11        fiscal year to exceed $25,000.
12        (2) If:
13            A. the award of the contract is approved by a
14        majority vote of the governing body of the municipality
15        provided that any such interested member shall abstain
16        from voting; and
17            B. the amount of the contract does not exceed
18        $2,000; and
19            C. the award of the contract would not cause the
20        aggregate amount of all such contracts so awarded to
21        the same person, firm, association, partnership,
22        corporation, or cooperative association in the same
23        fiscal year to exceed $4,000; and
24            D. such interested member publicly discloses the
25        nature and extent of his interest prior to or during
26        deliberations concerning the proposed award of the

 

 

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1        contract; and
2            E. such interested member abstains from voting on
3        the award of the contract, though he shall be
4        considered present for the purposes of establishing a
5        quorum.
6    (b-5) In addition to the above exemptions, any elected or
7appointed member of the governing body may provide materials,
8merchandise, property, services, or labor if:
9        A. the contract is with a person, firm, partnership,
10    association, corporation, or cooperative association in
11    which the interested member of the governing body of the
12    municipality, advisory panel, or commission has less than a
13    1% share in the ownership; and
14        B. the award of the contract is approved by a majority
15    vote of the governing body of the municipality provided
16    that any such interested member shall abstain from voting;
17    and
18        C. such interested member publicly discloses the
19    nature and extent of his interest before or during
20    deliberations concerning the proposed award of the
21    contract; and
22        D. such interested member abstains from voting on the
23    award of the contract, though he shall be considered
24    present for the purposes of establishing a quorum.
25    (c) A contract for the procurement of public utility
26services by a public entity with a public utility company is

 

 

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1not barred by this Section by one or more members of the
2governing body of the public entity being an officer or
3employee of the public utility company or holding an ownership
4interest of no more than 7 1/2% in the public utility company,
5or holding an ownership interest of any size if the public
6entity is a municipality with a population of less than 7,500
7and the public utility's rates are approved by the Illinois
8Commerce Commission. An elected or appointed member of the
9governing body of the public entity having such an interest
10shall be deemed not to have a prohibited interest under this
11Section.
12    (d) Notwithstanding any other provision of this Section or
13any other law to the contrary, until January 1, 1994, a member
14of the city council of a municipality with a population under
1520,000 may purchase real estate from the municipality, at a
16price of not less than 100% of the value of the real estate as
17determined by a written MAI certified appraisal or by a written
18certified appraisal of a State certified or licensed real
19estate appraiser, if the purchase is approved by a unanimous
20vote of the city council members then holding office (except
21for the member desiring to purchase the real estate, who shall
22not vote on the question).
23    (e) For the purposes of this Section only, a municipal
24officer shall not be deemed interested if the officer is an
25employee of a company or owns or holds an interest of 1% or
26less in the municipal officer's individual name in a company,

 

 

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1or both, that company is involved in the transaction of
2business with the municipality, and that company's stock is
3traded on a nationally recognized securities market, provided
4the interested member: (i) publicly discloses the fact that he
5or she is an employee or holds an interest of 1% or less in a
6company before deliberation of the proposed award of the
7contract; (ii) refrains from evaluating, recommending,
8approving, deliberating, or otherwise participating in
9negotiation, approval, or both, of the contract, work, or
10business; (iii) abstains from voting on the award of the
11contract though he or she shall be considered present for
12purposes of establishing a quorum; and (iv) the contract is
13approved by a majority vote of those members currently holding
14office.
15    A municipal officer shall not be deemed interested if the
16officer owns or holds an interest of 1% or less, not in the
17officer's individual name but through a mutual fund or
18exchange-traded fund, in a company, that company is involved in
19the transaction of business with the municipality, and that
20company's stock is traded on a nationally recognized securities
21market.
22    (f) Under either of the following circumstances, a
23municipal officer may hold a position on the board of a
24not-for-profit corporation that is interested in a contract,
25work, or business of the municipality:
26        (1) If the municipal officer is appointed by the

 

 

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1    governing body of the municipality to represent the
2    interests of the municipality on a not-for-profit
3    corporation's board, then the municipal officer may
4    actively vote on matters involving either that board or the
5    municipality, at any time, so long as the membership on the
6    not-for-profit board is not a paid position, except that
7    the municipal officer may be reimbursed by the
8    non-for-profit board for expenses incurred as the result of
9    membership on the non-for-profit board.
10        (2) If the municipal officer is not appointed to the
11    governing body of a not-for-profit corporation by the
12    governing body of the municipality, then the municipal
13    officer may continue to serve; however, the municipal
14    officer shall abstain from voting on any proposition before
15    the municipal governing body directly involving the
16    not-for-profit corporation and, for those matters, shall
17    not be counted as present for the purposes of a quorum of
18    the municipal governing body.
19    (g) Under either of the following circumstances, a county
20officer may hold a position on the board of a not-for-profit
21corporation that is interested in a contract, work, or business
22of the county:
23        (1) If the county officer is appointed by the governing
24    body of the county to represent the interests of the county
25    on a not-for-profit corporation's board, then the county
26    officer may actively vote on matters involving either that

 

 

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1    board or the county, at any time, so long as the membership
2    on the not-for-profit board is not a paid position, except
3    that the county officer may be reimbursed by the
4    not-for-profit board for expenses incurred as the result of
5    membership on the non-for-profit board.
6        (2) If the county officer is not appointed to the
7    governing body of a not-for-profit corporation by the
8    governing body of the county, then the county officer may
9    continue to serve; however, the county officer shall
10    abstain from voting on any proposition before the governing
11    body of the county directly involving the not-for-profit
12    corporation and, for those matters, shall not be counted as
13    present for the purposes of a quorum of the governing body
14    of the county.
15(Source: P.A. 96-277, eff. 1-1-10; 96-1058, eff. 7-14-10;
1697-520, eff. 8-23-11.)
 
17    Section 10. The Counties Code is amended by adding Section
185-3003 as follows:
 
19    (55 ILCS 5/5-3003 new)
20    Sec. 5-3003. Interests in contracts. Under either of the
21following circumstances, a county officer may hold a position
22on the board of a not-for-profit corporation that is interested
23in a contract, work, or business of the county:
24    (1) If the county officer is appointed by the governing

 

 

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1body of the county to represent the interests of the county on
2a not-for-profit corporation's board, then the county officer
3may actively vote on matters involving either that board or the
4county, at any time, so long as the membership on the
5not-for-profit board is not a paid position, except that the
6county officer may be reimbursed by the not-for-profit board
7for expenses incurred as the result of membership on the
8not-for-profit board.
9    (2) If the county officer is not appointed to the governing
10body of a not-for-profit corporation by the governing body of
11the county, then the county officer may continue to serve;
12however, the county officer shall abstain from voting on any
13proposition before the governing body of the county directly
14involving the not-for-profit corporation and, for those
15matters, shall not be counted as present for the purposes of a
16quorum of the governing body of the county.