Full Text of HB1605 99th General Assembly
HB1605ham001 99TH GENERAL ASSEMBLY | Rep. Ron Sandack Filed: 4/20/2015
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| 1 | | AMENDMENT TO HOUSE BILL 1605
| 2 | | AMENDMENT NO. ______. Amend House Bill 1605 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 1. Short title. This Act may be cited as the Local | 5 | | Government Bankruptcy Neutral Evaluation Act. | 6 | | Section 3. Findings. Filing for Chapter 9 can reduce | 7 | | service levels to the taxpayers and residents of a local public | 8 | | entity. In some circumstances, it can have major short-and | 9 | | long-term fiscal consequences for the entity, the surrounding | 10 | | entities, and the State. Filing for bankruptcy protection under | 11 | | Chapter 9 should be considered a last resort, to be instituted | 12 | | only after other reasonable efforts have been made to avoid a | 13 | | bankruptcy filing or otherwise appropriately plan for it. It is | 14 | | in the interest of the State, units of local government, and | 15 | | the public that local governmental entities have sufficiently | 16 | | sound financial capacity to provide required services to the |
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| 1 | | public and meet their contractual and other obligations during | 2 | | any restructuring or financial reorganization process. | 3 | | Furthermore, it is in the best interest of the public, the | 4 | | State, and local governmental entities that employees, trade | 5 | | creditors, bondholders, and other interest-holders be included | 6 | | in an appropriate restructuring process and have an adequate | 7 | | understanding of the financial capacity of local governmental | 8 | | entities and their obligations, as a clear understanding of | 9 | | both is necessary for any restructuring or reorganization | 10 | | process. | 11 | | To the extent financial relief granted through Chapter 9 | 12 | | can affect debt service payments, the bondholders have a direct | 13 | | interest in the Chapter 9 process, particularly prior to | 14 | | filing. Therefore, it is important for those parties to be able | 15 | | to participate in a prefiling confidential neutral evaluation | 16 | | process that could assist parties in reaching a settlement and | 17 | | avoiding a bankruptcy filing or otherwise lead to a | 18 | | pre-negotiated consensual plan of readjustment as clearly | 19 | | contemplated by subsection (c) of Section 109 of Title 11 of | 20 | | the United States Code. | 21 | | To the extent financial relief granted through Chapter 9 | 22 | | could affect public employee compensation, employees have a | 23 | | direct interest in the Chapter 9 process, particularly prior to | 24 | | filing.
Therefore, it is important for those parties to be able | 25 | | to participate in a prefiling confidential neutral evaluation | 26 | | process that could assist parties in reaching a settlement or |
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| 1 | | otherwise lead to a pre-negotiated, consensual plan of | 2 | | adjustment and avoid a Chapter 9 filing. | 3 | | Given the connection between State allocations and local | 4 | | budgets, the State has a role in assisting local public | 5 | | entities to address potential insolvency with the goal of | 6 | | averting bankruptcy filings where possible and providing a | 7 | | process designed to make the debt restructuring process in or | 8 | | outside of a Chapter 9 bankruptcy as cost effective and | 9 | | efficient as possible for all participants.
| 10 | | Illinois taxpayers who rely on public safety, senior, | 11 | | recreational, health, library, and other public services, as | 12 | | well as those who own and operate businesses in our | 13 | | communities, deserve every reasonable and appropriate effort | 14 | | that State and local government can make to avoid adverse | 15 | | consequences of Chapter 9 bankruptcy filings, particularly | 16 | | where a neutral evaluation may lead to the avoidance of Chapter | 17 | | 9 filing by an out-of-court resolution of outstanding | 18 | | obligations and disputes.
| 19 | | Resolving local and State business and financial issues in | 20 | | a timely, fair, and cost-effective manner is an integral part | 21 | | of a successful government and is in the public interest. It | 22 | | has long been recognized that alternative dispute resolution | 23 | | proceedings, like a neutral evaluation, offer an economical, | 24 | | discreet, and expeditious way to resolve potentially | 25 | | devastating situations.
| 26 | | Through the neutral evaluation process, the neutral |
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| 1 | | evaluator, a specially trained, neutral third party, can assist | 2 | | the local public entity and its creditors and stakeholders to | 3 | | fully explore alternatives, while allowing the interested | 4 | | parties to exchange information in a confidential environment | 5 | | with the assistance and supervision of a neutral evaluator to | 6 | | determine whether the entity's contractual and financial | 7 | | obligations can be renegotiated on a consensual basis.
| 8 | | Section 5. Eligibility. A local public entity in this State | 9 | | may file a petition and exercise powers pursuant to applicable | 10 | | federal bankruptcy law if either of the following apply:
(i) | 11 | | the local public entity has participated in a neutral | 12 | | evaluation process pursuant to Section 15 of this Act, or
(ii) | 13 | | the local public entity declares a fiscal emergency and adopts | 14 | | a resolution by a majority vote of the governing board pursuant | 15 | | to Section 20 of this Act. | 16 | | Section 10. Definitions. As used in this Act the following | 17 | | terms mean: | 18 | | "Chapter 9" means Chapter 9 of Title 11 of the United | 19 | | States Code. | 20 | | "Creditor" means either of the following: | 21 | | An entity that has a noncontingent claim against a | 22 | | municipality that arose at the time of or before the | 23 | | commencement of the neutral evaluation process and whose | 24 | | claim represents at least $5,000,000 or comprises more than |
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| 1 | | 5% of the local public entity's debt or obligations, | 2 | | whichever is less. | 3 | | An entity that would have a noncontingent claim against | 4 | | the municipality upon the rejection of an executory | 5 | | contract or unexpired lease in a Chapter 9 case and whose | 6 | | claim would represent at least $5,000,000 or comprises more | 7 | | than 5% of the local public entity's debt or obligations, | 8 | | whichever is less. | 9 | | "Debtor" means a local public entity that may file for | 10 | | bankruptcy under Chapter 9. | 11 | | "Good faith" means participation by a party in the neutral | 12 | | evaluation process with the intent to negotiate toward a | 13 | | resolution of the issues that are the subject of the neutral | 14 | | evaluation process, including the timely provision of complete | 15 | | and accurate information to provide the relevant parties | 16 | | through the neutral evaluation process with sufficient | 17 | | information, in a confidential manner, to negotiate the | 18 | | readjustment of the local public entity's debt.
| 19 | | "Interested party" means a trustee, a committee of | 20 | | creditors, an affected creditor, an indenture trustee, a | 21 | | pension fund, a bondholder, a union that, under its collective | 22 | | bargaining agreements, has standing to initiate contract or | 23 | | debt restructuring negotiations with the local public entity, | 24 | | or a representative selected by an association of retired | 25 | | employees of the public entity who receive income from the | 26 | | public entity convening the neutral evaluation. A local public |
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| 1 | | entity may invite holders of contingent claims to participate | 2 | | as interested parties in the neutral evaluation if the local | 3 | | public entity determines that the contingency is likely to | 4 | | occur and the claim may represent $5,000,000 or comprise more | 5 | | than 5% of the local public entity's debt or obligations, | 6 | | whichever is less.
| 7 | | "Local public entity" means any county, municipality, | 8 | | township, special district, public authority, public agency, | 9 | | or other entity that is a political subdivision or public | 10 | | agency or instrumentality of the State, or that qualifies as a | 11 | | debtor under any other federal bankruptcy law applicable to | 12 | | local public entities.
For purposes of this Act, "local public | 13 | | entity" does not include a school district.
| 14 | | "Local public entity representative" means the person or | 15 | | persons designated by the local public agency with authority to | 16 | | make recommendations and to attend the neutral evaluation on | 17 | | behalf of the governing body of the local public agency.
| 18 | | "Neutral evaluation" is a form of non-binding alternative | 19 | | dispute resolution that may be known as mandatory mediation. A | 20 | | "neutral evaluator" may also be known as a mediator.
| 21 | | Section 15. Neutral evaluation process. | 22 | | (a) A local public entity may initiate the neutral | 23 | | evaluation process if the local public entity is or likely will | 24 | | become unable to meet its financial obligations as and when | 25 | | those obligations are due or become due and owing. The local |
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| 1 | | public entity shall initiate the neutral evaluation by | 2 | | providing notice by certified mail of a request for neutral | 3 | | evaluation to all interested parties, as defined in Section 10 | 4 | | of this Act.
| 5 | | (b) Interested parties shall respond within 10 business | 6 | | days after receipt of notice of the local public entity's | 7 | | request for neutral evaluation. | 8 | | (c) The local public entity and the interested parties | 9 | | agreeing to participate in the neutral evaluation shall, | 10 | | through a mutually agreed upon process, select the neutral | 11 | | evaluator to oversee the neutral evaluation process and | 12 | | facilitate all discussions in an effort to resolve their | 13 | | disputes. | 14 | | If the local public entity and interested parties fail to | 15 | | agree on a neutral evaluator within 7 days after the interested | 16 | | parties have responded to the notification sent by the public | 17 | | entity, the public entity shall select 5 qualified neutral | 18 | | evaluators and provide their names, references, and | 19 | | backgrounds to the participating interested parties. Within 3 | 20 | | business days, a majority of participating interested parties | 21 | | may strike up to 4 names from the list. If a majority of | 22 | | participating interested parties strikes 4 names, the | 23 | | remaining candidate shall be the neutral evaluator. If the | 24 | | majority of participating parties strikes fewer than 4 names, | 25 | | the local public entity may choose which of the remaining | 26 | | candidates shall be the neutral evaluator.
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| 1 | | (d) A neutral evaluator shall have experience and training | 2 | | in conflict resolution and alternative dispute resolution and | 3 | | shall meet at least one of the following qualifications: | 4 | | (1) at least 10 years of high-level business or legal | 5 | | practice involving bankruptcy or service as a United States | 6 | | Bankruptcy Judge; or | 7 | | (2) professional experience or training in local | 8 | | government finance and one or more of the following areas: | 9 | | local government organization, local government debt | 10 | | restructuring, local government finances dispute | 11 | | resolution, Chapter 9 bankruptcy, public finance, | 12 | | taxation, Illinois Constitutional law, Illinois labor law, | 13 | | or federal labor law. | 14 | | (e) The neutral evaluator shall be impartial, objective, | 15 | | independent, and free from prejudice. The neutral evaluator | 16 | | shall not act with partiality or prejudice based on any | 17 | | participant's personal characteristics, background, values or | 18 | | beliefs, or performance during the neutral evaluation process. | 19 | | (f) The neutral evaluator shall avoid a conflict of | 20 | | interest or the appearance of a conflict of interest during the | 21 | | neutral evaluation process. The neutral evaluator shall make a | 22 | | reasonable inquiry to determine whether there are any facts | 23 | | that a reasonable individual would consider likely to create a | 24 | | potential or actual conflict of interest. Notwithstanding | 25 | | subsection (n) of this Section, if the neutral evaluator is | 26 | | informed of the existence of any facts that a reasonable |
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| 1 | | individual would consider likely to create a potential or | 2 | | actual conflict of interest, the neutral evaluator shall | 3 | | disclose these facts in writing to the local public entity and | 4 | | all interested parties involved in the neutral evaluation. If | 5 | | any party to the neutral evaluation objects to the neutral | 6 | | evaluator, that party shall notify all other parties to the | 7 | | neutral evaluation, including the neutral evaluator, within 15 | 8 | | days after receipt of the notice from the neutral evaluator, | 9 | | and the neutral evaluator shall withdraw and a new neutral | 10 | | evaluator shall be selected pursuant to subsections (a) and (b) | 11 | | of this Section.
| 12 | | (g) Prior to the neutral evaluation process, the neutral | 13 | | evaluator shall not establish another relationship with any of | 14 | | the parties in a manner that would raise questions about the | 15 | | integrity of the neutral evaluation, except that the neutral | 16 | | evaluator may conduct further neutral evaluations regarding | 17 | | other potential local public entities that may involve some of | 18 | | the same or similar constituents to a prior mediation. | 19 | | (h) The neutral evaluator shall conduct the neutral | 20 | | evaluation process in a manner that promotes voluntary, | 21 | | uncoerced decision-making in which each party makes free and | 22 | | informed choices regarding the process and outcome.
| 23 | | (i) The neutral evaluator shall not impose a settlement on | 24 | | the parties. The neutral evaluator shall use his or her best | 25 | | efforts to assist the parties to reach a satisfactory | 26 | | resolution of their disputes. Subject to the discretion of the |
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| 1 | | neutral evaluator, the neutral evaluator may make oral or | 2 | | written recommendations for settlement or plan of readjustment | 3 | | to a party privately or to all parties jointly.
| 4 | | (j) The neutral evaluator shall inform the local public | 5 | | entity and all parties of the provisions of Chapter 9 relative | 6 | | to other chapters of the bankruptcy codes. This instruction | 7 | | shall highlight the limited authority of United States | 8 | | bankruptcy judges in Chapter 9, including the lack of | 9 | | flexibility available to judges to reduce or cram down debt | 10 | | repayments and similar efforts not available to reorganize the | 11 | | operations of the city that may be available to a corporate | 12 | | entity.
| 13 | | (k) The neutral evaluator may request from the parties | 14 | | documentation and other information that the neutral evaluator | 15 | | believes may be helpful in assisting the parties to address the | 16 | | obligations between them. This documentation may include the | 17 | | status of funds of the local public entity that clearly | 18 | | distinguishes between general funds and special funds, and the | 19 | | proposed plan of readjustment prepared by the local public | 20 | | entity.
| 21 | | (l) The neutral evaluator shall provide counsel and | 22 | | guidance to all parties, shall not be a legal representative of | 23 | | any party, and shall not have a fiduciary duty to any party.
| 24 | | (m) In the event of a settlement with all interested | 25 | | parties, the neutral evaluator may assist the parties in | 26 | | negotiating a pre-petitioned, pre-agreed plan of readjustment |
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| 1 | | in connection with a potential Chapter 9 filing.
| 2 | | (n) If at any time during the neutral evaluation process | 3 | | the local public entity and a majority of the representatives | 4 | | of the interested parties participating in the neutral | 5 | | evaluation wish to remove the neutral evaluator, the local | 6 | | public entity or any interested party may make a request to the | 7 | | other interested parties to remove the neutral evaluator. If | 8 | | the local public entity and the majority of the interested | 9 | | parties agree that the neutral evaluator should be removed, the | 10 | | parties shall select a new neutral evaluator. | 11 | | (o) The local public entity and all interested parties | 12 | | participating in the neutral evaluation process shall | 13 | | negotiate in good faith.
| 14 | | (p) The local public entity and interested parties shall | 15 | | provide a representative of each party to attend all neutral | 16 | | evaluation sessions. Each representative shall have the | 17 | | authority to settle and resolve disputes or shall be in a | 18 | | position to present any proposed settlement or plan of | 19 | | readjustment to the parties participating in the neutral | 20 | | evaluation.
| 21 | | (q) The parties shall maintain the confidentiality of the | 22 | | neutral evaluation process and shall not disclose statements | 23 | | made, information disclosed, or documents prepared or | 24 | | produced, during the neutral evaluation process, at the | 25 | | conclusion of the neutral evaluation process or during any | 26 | | bankruptcy proceeding unless either of the following occur:
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| 1 | | (i) all persons that conduct or otherwise participate | 2 | | in the neutral evaluation expressly agree in writing or | 3 | | orally to disclosure of the communication, document, or | 4 | | writing; or
| 5 | | (ii) the information is deemed necessary by a judge | 6 | | presiding over a bankruptcy proceeding pursuant to Chapter | 7 | | 9 of Title 11 of the United States Code to determine | 8 | | eligibility of a local public entity to proceed with a | 9 | | bankruptcy proceeding pursuant to subsection (c) of | 10 | | Section 109 of Title 11 of the United States Code.
| 11 | | (r) The neutral evaluation established by this process | 12 | | shall not last for more than 60 days after the date the | 13 | | evaluator is selected, unless the local public entity or a | 14 | | majority of participating interested parties elect to extend | 15 | | the process for up to 30 additional days. The neutral | 16 | | evaluation process shall not last for more than 90 days after | 17 | | the date the evaluator is selected unless the local public | 18 | | entity and a majority of the interested parties agree to an | 19 | | extension.
| 20 | | (s) The local public entity shall pay 50% of the costs of | 21 | | neutral evaluation, including but not limited to the fees of | 22 | | the evaluator, and the creditors shall pay the balance, unless | 23 | | otherwise agreed to by the parties.
| 24 | | (t) The neutral evaluation process shall end if any of the | 25 | | following occur:
| 26 | | (i) the parties execute an settlement agreement; |
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| 1 | | (ii) the parties reach an agreement or proposed plan of | 2 | | readjustment that requires the approval of a bankruptcy | 3 | | judge; | 4 | | (iii) the neutral evaluation process has exceeded 60 | 5 | | days after the date the neutral evaluator was selected, the | 6 | | parties have not reached an agreement, and neither the | 7 | | local public entity or a majority of the interested parties | 8 | | elect to extend the neutral evaluation process past the | 9 | | initial 60-day time period;
| 10 | | (iv) the local public entity initiated the neutral | 11 | | evaluation process pursuant to subsection (a) of this | 12 | | Section and received no responses from interested parties | 13 | | within the time specified in subsection (b) of this | 14 | | Section; or
| 15 | | (v) the fiscal condition of the local public entity | 16 | | deteriorates to the point that a fiscal emergency is | 17 | | declared pursuant to Section 20 of this Act and | 18 | | necessitates the need to file a petition and exercise | 19 | | powers pursuant to applicable federal bankruptcy law.
| 20 | | Section 20. Declaration of fiscal emergency. | 21 | | Notwithstanding any other Section of this Act, a local public | 22 | | entity may file a petition and exercise powers pursuant to | 23 | | applicable federal bankruptcy law, if the local public entity | 24 | | declares a fiscal emergency and adopts a resolution by a | 25 | | majority vote of the governing board at a noticed public |
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| 1 | | hearing that includes findings that the financial state of the | 2 | | local public entity jeopardizes the health, safety, or | 3 | | well-being of the residents of the local public entity's | 4 | | jurisdiction or service area absent the protections of Chapter | 5 | | 9. The resolution shall make findings that the public entity is | 6 | | or will be unable to pay its obligations within the next 60 | 7 | | days. Prior to a declaration of fiscal emergency and adoption | 8 | | of a resolution, the local public entity shall place an item on | 9 | | the agenda of a noticed public hearing on the fiscal condition | 10 | | of the entity to take public comment. The board of supervisors | 11 | | of a county that intends to take action pursuant to this | 12 | | Section and places a notice on an agenda regarding a proposed | 13 | | resolution to declare a fiscal emergency may require local | 14 | | agencies with funds invested in the county treasury to provide | 15 | | a 5-day notice of withdrawal before the county is required to | 16 | | comply with a request for withdrawal of funds by that local | 17 | | agency.
| 18 | | Section 25. Liabilities. This Act shall not impose any | 19 | | liability or responsibility, in law or equity, upon the State, | 20 | | any department, agency, or other entity of the State, or any | 21 | | officer or employee of the State, for any action taken by any | 22 | | local public entity pursuant to this Act, for any violation of | 23 | | the provisions of this Act by any local public entity, or for | 24 | | any failure to comply with the provisions of this Act by any | 25 | | local public entity. No cause of action against the State, or |
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| 1 | | any department, agency, entity of the State, or any officer or | 2 | | employee of the State acting in their official capacity may be | 3 | | maintained for any activity authorized by this Act, or for the | 4 | | act of a local public entity filing under Chapter 9 of Title 11 | 5 | | of the United States Code, including any proceeding following a | 6 | | local public entity's filing.
| 7 | | Section 30. Public access; meetings and information. Any | 8 | | meetings or writings made pursuant to this Act are prohibited | 9 | | from being disclosed to the public. | 10 | | Section 35. Statutory lien for bonds. | 11 | | (a) As used in this Section: | 12 | | "Bond" or "bonds" has the same meaning given to that term | 13 | | under Section 3 of the Local Government Debt Reform Act. | 14 | | "Governmental unit" has the same meaning given to that term | 15 | | under Section 3 of the Local Government Debt Reform Act. | 16 | | "Statutory lien" shall have the meaning given to that term | 17 | | under 11 U.S.C. 101(53) of the Federal Bankruptcy Code. | 18 | | (b) All bonds, including general obligation bonds and | 19 | | revenue bonds issued and sold under the Local Government Debt | 20 | | Reform Act or related laws, including bonds issued under home | 21 | | rule powers, issued by a governmental unit shall be secured by | 22 | | a statutory lien on all revenues received pursuant to the levy | 23 | | and collection of tax or the collection or deposit of money, | 24 | | funds, or revenues so pledged to the payment of the bonds. The |
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| 1 | | statutory lien shall automatically attach from the time such | 2 | | pledge is made without further action or authorization by the | 3 | | governing authority of the governmental unit. The statutory | 4 | | lien shall be valid and binding from the time the bonds are | 5 | | executed and delivered without any physical delivery thereof or | 6 | | further act required, and shall be a first priority lien, | 7 | | unless the bonds so otherwise provide, and the taxes, funds, | 8 | | revenues, and moneys so pledged shall not be used for other | 9 | | purposes until the bonds are paid in full. | 10 | | The revenues received pursuant to the levy and collection | 11 | | of the taxes or the collection or deposit of revenues, money, | 12 | | or funds so pledged shall be immediately subject to the | 13 | | statutory lien, and the statutory lien shall automatically | 14 | | attach to the revenues and be effective, binding, and | 15 | | enforceable against the governmental unit or its successors, | 16 | | transferees, and creditors, and all others asserting rights | 17 | | therein or having claims of any kind in tort, contract, or | 18 | | otherwise against the governmental unit, irrespective of | 19 | | whether those parties have notice of the lien and without the | 20 | | need for any physical delivery, recordation, filing, or further | 21 | | act. In addition, revenue bonds issued by a governmental unit | 22 | | under the Local Government Debt Reform Act or related laws, | 23 | | including bonds issued by governmental unit with home rule | 24 | | authority, shall have all of the protection afforded to special | 25 | | revenue under 11 U.S.C. 901 et. seq., of the Federal Bankruptcy | 26 | | Code. |
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| 1 | | Section 80. The Open Meetings Act is amended by changing | 2 | | Section 2 as follows:
| 3 | | (5 ILCS 120/2) (from Ch. 102, par. 42)
| 4 | | Sec. 2. Open meetings.
| 5 | | (a) Openness required. All meetings of public
bodies shall | 6 | | be open to the public unless excepted in subsection (c)
and | 7 | | closed in accordance with Section 2a.
| 8 | | (b) Construction of exceptions. The exceptions contained | 9 | | in subsection
(c) are in derogation of the requirement that | 10 | | public bodies
meet in the open, and therefore, the exceptions | 11 | | are to be strictly
construed, extending only to subjects | 12 | | clearly within their scope.
The exceptions authorize but do not | 13 | | require the holding of
a closed meeting to discuss a subject | 14 | | included within an enumerated exception.
| 15 | | (c) Exceptions. A public body may hold closed meetings to | 16 | | consider the
following subjects:
| 17 | | (1) The appointment, employment, compensation, | 18 | | discipline, performance,
or dismissal of specific | 19 | | employees of the public body or legal counsel for
the | 20 | | public body, including hearing
testimony on a complaint | 21 | | lodged against an employee of the public body or
against | 22 | | legal counsel for the public body to determine its | 23 | | validity.
| 24 | | (2) Collective negotiating matters between the public |
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| 1 | | body and its
employees or their representatives, or | 2 | | deliberations concerning salary
schedules for one or more | 3 | | classes of employees.
| 4 | | (3) The selection of a person to fill a public office,
| 5 | | as defined in this Act, including a vacancy in a public | 6 | | office, when the public
body is given power to appoint | 7 | | under law or ordinance, or the discipline,
performance or | 8 | | removal of the occupant of a public office, when the public | 9 | | body
is given power to remove the occupant under law or | 10 | | ordinance.
| 11 | | (4) Evidence or testimony presented in open hearing, or | 12 | | in closed
hearing where specifically authorized by law, to
| 13 | | a quasi-adjudicative body, as defined in this Act, provided | 14 | | that the body
prepares and makes available for public | 15 | | inspection a written decision
setting forth its | 16 | | determinative reasoning.
| 17 | | (5) The purchase or lease of real property for the use | 18 | | of
the public body, including meetings held for the purpose | 19 | | of discussing
whether a particular parcel should be | 20 | | acquired.
| 21 | | (6) The setting of a price for sale or lease of | 22 | | property owned
by the public body.
| 23 | | (7) The sale or purchase of securities, investments, or | 24 | | investment
contracts. This exception shall not apply to the | 25 | | investment of assets or income of funds deposited into the | 26 | | Illinois Prepaid Tuition Trust Fund.
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| 1 | | (8) Security procedures and the use of personnel and
| 2 | | equipment to respond to an actual, a threatened, or a | 3 | | reasonably
potential danger to the safety of employees, | 4 | | students, staff, the public, or
public
property.
| 5 | | (9) Student disciplinary cases.
| 6 | | (10) The placement of individual students in special | 7 | | education
programs and other matters relating to | 8 | | individual students.
| 9 | | (11) Litigation, when an action against, affecting or | 10 | | on behalf of the
particular public body has been filed and | 11 | | is pending before a court or
administrative tribunal, or | 12 | | when the public body finds that an action is
probable or | 13 | | imminent, in which case the basis for the finding shall be
| 14 | | recorded and entered into the minutes of the closed | 15 | | meeting.
| 16 | | (12) The establishment of reserves or settlement of | 17 | | claims as provided
in the Local Governmental and | 18 | | Governmental Employees Tort Immunity Act, if
otherwise the | 19 | | disposition of a claim or potential claim might be
| 20 | | prejudiced, or the review or discussion of claims, loss or | 21 | | risk management
information, records, data, advice or | 22 | | communications from or with respect
to any insurer of the | 23 | | public body or any intergovernmental risk management
| 24 | | association or self insurance pool of which the public body | 25 | | is a member.
| 26 | | (13) Conciliation of complaints of discrimination in |
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| 1 | | the sale or rental
of housing, when closed meetings are | 2 | | authorized by the law or ordinance
prescribing fair housing | 3 | | practices and creating a commission or
administrative | 4 | | agency for their enforcement.
| 5 | | (14) Informant sources, the hiring or assignment of | 6 | | undercover personnel
or equipment, or ongoing, prior or | 7 | | future criminal investigations, when
discussed by a public | 8 | | body with criminal investigatory responsibilities.
| 9 | | (15) Professional ethics or performance when | 10 | | considered by an advisory
body appointed to advise a | 11 | | licensing or regulatory agency on matters
germane to the | 12 | | advisory body's field of competence.
| 13 | | (16) Self evaluation, practices and procedures or | 14 | | professional ethics,
when meeting with a representative of | 15 | | a statewide association of which the
public body is a | 16 | | member.
| 17 | | (17) The recruitment, credentialing, discipline or | 18 | | formal peer review
of physicians or other
health care | 19 | | professionals for a hospital, or
other institution | 20 | | providing medical care, that is operated by the public | 21 | | body.
| 22 | | (18) Deliberations for decisions of the Prisoner | 23 | | Review Board.
| 24 | | (19) Review or discussion of applications received | 25 | | under the
Experimental Organ Transplantation Procedures | 26 | | Act.
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| 1 | | (20) The classification and discussion of matters | 2 | | classified as
confidential or continued confidential by | 3 | | the State Government Suggestion Award
Board.
| 4 | | (21) Discussion of minutes of meetings lawfully closed | 5 | | under this Act,
whether for purposes of approval by the | 6 | | body of the minutes or semi-annual
review of the minutes as | 7 | | mandated by Section 2.06.
| 8 | | (22) Deliberations for decisions of the State
| 9 | | Emergency Medical Services Disciplinary
Review Board.
| 10 | | (23) The operation by a municipality of a municipal | 11 | | utility or the
operation of a
municipal power agency or | 12 | | municipal natural gas agency when the
discussion involves | 13 | | (i) contracts relating to the
purchase, sale, or delivery | 14 | | of electricity or natural gas or (ii) the results
or | 15 | | conclusions of load forecast studies.
| 16 | | (24) Meetings of a residential health care facility | 17 | | resident sexual
assault and death review
team or
the | 18 | | Executive
Council under the Abuse Prevention Review
Team | 19 | | Act.
| 20 | | (25) Meetings of an independent team of experts under | 21 | | Brian's Law. | 22 | | (26) Meetings of a mortality review team appointed | 23 | | under the Department of Juvenile Justice Mortality Review | 24 | | Team Act. | 25 | | (27) (Blank). | 26 | | (28) Correspondence and records (i) that may not be |
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| 1 | | disclosed under Section 11-9 of the Public Aid Code or (ii) | 2 | | that pertain to appeals under Section 11-8 of the Public | 3 | | Aid Code. | 4 | | (29) Meetings between internal or external auditors | 5 | | and governmental audit committees, finance committees, and | 6 | | their equivalents, when the discussion involves internal | 7 | | control weaknesses, identification of potential fraud risk | 8 | | areas, known or suspected frauds, and fraud interviews | 9 | | conducted in accordance with generally accepted auditing | 10 | | standards of the United States of America. | 11 | | (30) Those meetings or portions of meetings of a | 12 | | fatality review team or the Illinois Fatality Review Team | 13 | | Advisory Council during which a review of the death of an | 14 | | eligible adult in which abuse or neglect is suspected, | 15 | | alleged, or substantiated is conducted pursuant to Section | 16 | | 15 of the Adult Protective Services Act. | 17 | | (31) Meetings and deliberations for decisions of the | 18 | | Concealed Carry Licensing Review Board under the Firearm | 19 | | Concealed Carry Act. | 20 | | (32) Meetings between the Regional Transportation | 21 | | Authority Board and its Service Boards when the discussion | 22 | | involves review by the Regional Transportation Authority | 23 | | Board of employment contracts under Section 28d of the | 24 | | Metropolitan Transit Authority Act and Sections 3A.18 and | 25 | | 3B.26 of the Regional Transportation Authority Act. | 26 | | (33) Meetings held pursuant to the Local Government |
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| 1 | | Bankruptcy Neutral Evaluation Act. | 2 | | (d) Definitions. For purposes of this Section:
| 3 | | "Employee" means a person employed by a public body whose | 4 | | relationship
with the public body constitutes an | 5 | | employer-employee relationship under
the usual common law | 6 | | rules, and who is not an independent contractor.
| 7 | | "Public office" means a position created by or under the
| 8 | | Constitution or laws of this State, the occupant of which is | 9 | | charged with
the exercise of some portion of the sovereign | 10 | | power of this State. The term
"public office" shall include | 11 | | members of the public body, but it shall not
include | 12 | | organizational positions filled by members thereof, whether
| 13 | | established by law or by a public body itself, that exist to | 14 | | assist the
body in the conduct of its business.
| 15 | | "Quasi-adjudicative body" means an administrative body | 16 | | charged by law or
ordinance with the responsibility to conduct | 17 | | hearings, receive evidence or
testimony and make | 18 | | determinations based
thereon, but does not include
local | 19 | | electoral boards when such bodies are considering petition | 20 | | challenges.
| 21 | | (e) Final action. No final action may be taken at a closed | 22 | | meeting.
Final action shall be preceded by a public recital of | 23 | | the nature of the
matter being considered and other information | 24 | | that will inform the
public of the business being conducted.
| 25 | | (Source: P.A. 97-318, eff. 1-1-12; 97-333, eff. 8-12-11; | 26 | | 97-452, eff. 8-19-11; 97-813, eff. 7-13-12; 97-876, eff. |
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| 1 | | 8-1-12; 98-49, eff. 7-1-13; 98-63, eff. 7-9-13; 98-756, eff. | 2 | | 7-16-14; 98-1027, eff. 1-1-15; 98-1039, eff. 8-25-14; revised | 3 | | 10-1-14.)
| 4 | | Section 85. The Freedom of Information Act is amended by | 5 | | changing Section 7.5 as follows: | 6 | | (5 ILCS 140/7.5) | 7 | | Sec. 7.5. Statutory exemptions Exemptions . To the extent | 8 | | provided for by the statutes referenced below, the following | 9 | | shall be exempt from inspection and copying: | 10 | | (a) All information determined to be confidential | 11 | | under Section 4002 of the Technology Advancement and | 12 | | Development Act. | 13 | | (b) Library circulation and order records identifying | 14 | | library users with specific materials under the Library | 15 | | Records Confidentiality Act. | 16 | | (c) Applications, related documents, and medical | 17 | | records received by the Experimental Organ Transplantation | 18 | | Procedures Board and any and all documents or other records | 19 | | prepared by the Experimental Organ Transplantation | 20 | | Procedures Board or its staff relating to applications it | 21 | | has received. | 22 | | (d) Information and records held by the Department of | 23 | | Public Health and its authorized representatives relating | 24 | | to known or suspected cases of sexually transmissible |
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| 1 | | disease or any information the disclosure of which is | 2 | | restricted under the Illinois Sexually Transmissible | 3 | | Disease Control Act. | 4 | | (e) Information the disclosure of which is exempted | 5 | | under Section 30 of the Radon Industry Licensing Act. | 6 | | (f) Firm performance evaluations under Section 55 of | 7 | | the Architectural, Engineering, and Land Surveying | 8 | | Qualifications Based Selection Act. | 9 | | (g) Information the disclosure of which is restricted | 10 | | and exempted under Section 50 of the Illinois Prepaid | 11 | | Tuition Act. | 12 | | (h) Information the disclosure of which is exempted | 13 | | under the State Officials and Employees Ethics Act, and | 14 | | records of any lawfully created State or local inspector | 15 | | general's office that would be exempt if created or | 16 | | obtained by an Executive Inspector General's office under | 17 | | that Act. | 18 | | (i) Information contained in a local emergency energy | 19 | | plan submitted to a municipality in accordance with a local | 20 | | emergency energy plan ordinance that is adopted under | 21 | | Section 11-21.5-5 of the Illinois Municipal Code. | 22 | | (j) Information and data concerning the distribution | 23 | | of surcharge moneys collected and remitted by wireless | 24 | | carriers under the Wireless Emergency Telephone Safety | 25 | | Act. | 26 | | (k) Law enforcement officer identification information |
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| 1 | | or driver identification information compiled by a law | 2 | | enforcement agency or the Department of Transportation | 3 | | under Section 11-212 of the Illinois Vehicle Code. | 4 | | (l) Records and information provided to a residential | 5 | | health care facility resident sexual assault and death | 6 | | review team or the Executive Council under the Abuse | 7 | | Prevention Review Team Act. | 8 | | (m) Information provided to the predatory lending | 9 | | database created pursuant to Article 3 of the Residential | 10 | | Real Property Disclosure Act, except to the extent | 11 | | authorized under that Article. | 12 | | (n) Defense budgets and petitions for certification of | 13 | | compensation and expenses for court appointed trial | 14 | | counsel as provided under Sections 10 and 15 of the Capital | 15 | | Crimes Litigation Act. This subsection (n) shall apply | 16 | | until the conclusion of the trial of the case, even if the | 17 | | prosecution chooses not to pursue the death penalty prior | 18 | | to trial or sentencing. | 19 | | (o) Information that is prohibited from being | 20 | | disclosed under Section 4 of the Illinois Health and | 21 | | Hazardous Substances Registry Act. | 22 | | (p) Security portions of system safety program plans, | 23 | | investigation reports, surveys, schedules, lists, data, or | 24 | | information compiled, collected, or prepared by or for the | 25 | | Regional Transportation Authority under Section 2.11 of | 26 | | the Regional Transportation Authority Act or the St. Clair |
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| 1 | | County Transit District under the Bi-State Transit Safety | 2 | | Act. | 3 | | (q) Information prohibited from being disclosed by the | 4 | | Personnel Records Review Act. | 5 | | (r) Information prohibited from being disclosed by the | 6 | | Illinois School Student Records Act. | 7 | | (s) Information the disclosure of which is restricted | 8 | | under Section 5-108 of the Public Utilities Act.
| 9 | | (t) All identified or deidentified health information | 10 | | in the form of health data or medical records contained in, | 11 | | stored in, submitted to, transferred by, or released from | 12 | | the Illinois Health Information Exchange, and identified | 13 | | or deidentified health information in the form of health | 14 | | data and medical records of the Illinois Health Information | 15 | | Exchange in the possession of the Illinois Health | 16 | | Information Exchange Authority due to its administration | 17 | | of the Illinois Health Information Exchange. The terms | 18 | | "identified" and "deidentified" shall be given the same | 19 | | meaning as in the Health Insurance Accountability and | 20 | | Portability Act of 1996, Public Law 104-191, or any | 21 | | subsequent amendments thereto, and any regulations | 22 | | promulgated thereunder. | 23 | | (u) Records and information provided to an independent | 24 | | team of experts under Brian's Law. | 25 | | (v) Names and information of people who have applied | 26 | | for or received Firearm Owner's Identification Cards under |
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| 1 | | the Firearm Owners Identification Card Act or applied for | 2 | | or received a concealed carry license under the Firearm | 3 | | Concealed Carry Act, unless otherwise authorized by the | 4 | | Firearm Concealed Carry Act; and databases under the | 5 | | Firearm Concealed Carry Act, records of the Concealed Carry | 6 | | Licensing Review Board under the Firearm Concealed Carry | 7 | | Act, and law enforcement agency objections under the | 8 | | Firearm Concealed Carry Act. | 9 | | (w) Personally identifiable information which is | 10 | | exempted from disclosure under subsection (g) of Section | 11 | | 19.1 of the Toll Highway Act. | 12 | | (x) Information which is exempted from disclosure | 13 | | under Section 5-1014.3 of the Counties Code or Section | 14 | | 8-11-21 of the Illinois Municipal Code. | 15 | | (y) Confidential information under the Adult | 16 | | Protective Services Act and its predecessor enabling | 17 | | statute, the Elder Abuse and Neglect Act, including | 18 | | information about the identity and administrative finding | 19 | | against any caregiver of a verified and substantiated | 20 | | decision of abuse, neglect, or financial exploitation of an | 21 | | eligible adult maintained in the Registry established | 22 | | under Section 7.5 of the Adult Protective Services Act . | 23 | | (z) Records and information provided to a fatality | 24 | | review team or the Illinois Fatality Review Team Advisory | 25 | | Council under Section 15 of the Adult Protective Services | 26 | | Act. |
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| 1 | | (aa) Information which is exempted from disclosure | 2 | | under Section 2.37 of the Wildlife Code. | 3 | | (bb) All records and information prohibited from being | 4 | | disclosed by the Local Government Bankruptcy Neutral | 5 | | Evaluation Act. | 6 | | (Source: P.A. 97-80, eff. 7-5-11; 97-333, eff. 8-12-11; 97-342, | 7 | | eff. 8-12-11; 97-813, eff. 7-13-12; 97-976, eff. 1-1-13; 98-49, | 8 | | eff. 7-1-13; 98-63, eff. 7-9-13; 98-756, eff. 7-16-14; 98-1039, | 9 | | eff. 8-25-14; 98-1045, eff. 8-25-14; revised 10-1-14.)".
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