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90_SB0234enr
50 ILCS 105/3 from Ch. 102, par. 3
50 ILCS 105/3.2 from Ch. 102, par. 3.2
70 ILCS 910/13 from Ch. 23, par. 1263
Amends the Hospital District Law to provide that at least
one director on a district board may be a member of a
district hospital medical staff. Amends the Public Officer
Prohibited Activities Act. Provides that the provisions
prohibiting an interest in contracts do not apply to a
director on a hospital district board who is a member of a
district hospital medical staff and allows this director to
have an interest in a hospital district's contract of deposit
or financial service with a local bank or savings and loan
association.
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1 AN ACT concerning hospital district directors.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Public Officer Prohibited Activities Act
5 is amended by changing Sections 3 and 3.2 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
9 appointment under the laws or constitution of this State, may
10 be in any manner interested, either directly or indirectly,
11 in his own name or in the name of any other person,
12 association, trust, or corporation, in any contract or the
13 performance of any work in the making or letting of which
14 such officer may be called upon to act or vote. No such
15 officer may represent, either as agent or otherwise, any
16 person, association, trust, or corporation, with respect to
17 any application or bid for any contract or work in regard to
18 which such officer may be called upon to vote. Nor may any
19 such officer take or receive, or offer to take or receive,
20 either directly or indirectly, any money or other thing of
21 value as a gift or bribe or means of influencing his vote or
22 action in his official character. Any contract made and
23 procured in violation hereof is void. This Section shall not
24 apply to any person serving on an advisory panel or
25 commission or to any director serving on a hospital district
26 board as provided under subsection (a-5) of Section 13 of the
27 Hospital District Law.
28 (b) However, any elected or appointed member of the
29 governing body may provide materials, merchandise, property,
30 services, or labor, if:
31 A. the contract is with a person, firm,
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1 partnership, association, corporation, or cooperative
2 association in which such interested member of the
3 governing body of the municipality has less than a 7 1/2%
4 share in the ownership; and
5 B. such interested member publicly discloses the
6 nature and extent of his interest prior to or during
7 deliberations concerning the proposed award of the
8 contract; and
9 C. such interested member abstains from voting on
10 the award of the contract, though he shall be considered
11 present for the purposes of establishing a quorum; and
12 D. such contract is approved by a majority vote of
13 those members presently holding office; and
14 E. the contract is awarded after sealed bids to the
15 lowest responsible bidder if the amount of the contract
16 exceeds $1500, or awarded without bidding if the amount
17 of the contract is less than $1500; and
18 F. the award of the contract would not cause the
19 aggregate amount of all such contracts so awarded to the
20 same person, firm, association, partnership, corporation,
21 or cooperative association in the same fiscal year to
22 exceed $25,000.
23 (c) In addition to the above exemption, any elected or
24 appointed member of the governing body may provide materials,
25 merchandise, property, services, or labor if:
26 A. the award of the contract is approved by a
27 majority vote of the governing body of the municipality
28 provided that any such interested member shall abstain
29 from voting; and
30 B. the amount of the contract does not exceed
31 $2,000; and
32 C. the award of the contract would not cause the
33 aggregate amount of all such contracts so awarded to the
34 same person, firm, association, partnership, corporation,
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1 or cooperative association in the same fiscal year to
2 exceed $4,000; and
3 D. such interested member publicly discloses the
4 nature and extent of his interest prior to or during
5 deliberations concerning the proposed award of the
6 contract; and
7 E. such interested member abstains from voting on
8 the award of the contract, though he shall be considered
9 present for the purposes of establishing a quorum.
10 (d) A contract for the procurement of public utility
11 services by a public entity with a public utility company is
12 not barred by this Section by one or more members of the
13 governing body of the public entity being an officer or
14 employee of the public utility company or holding an
15 ownership interest of no more than 7 1/2% in the public
16 utility company, or holding an ownership interest of any size
17 if the public entity is a municipality with a population of
18 less than 7,500 and the public utility's rates are approved
19 by the Illinois Commerce Commission. An elected or appointed
20 member of the governing body of the public entity having such
21 an interest shall be deemed not to have a prohibited interest
22 under this Section.
23 (e) Notwithstanding any other provision of this Section
24 or any other law to the contrary, until January 1, 1994, a
25 member of the city council of a municipality with a
26 population under 20,000 may purchase real estate from the
27 municipality, at a price of not less than 100% of the value
28 of the real estate as determined by a written MAI certified
29 appraisal or by a written certified appraisal of a State
30 certified or licensed real estate appraiser, if the purchase
31 is approved by a unanimous vote of the city council members
32 then holding office (except for the member desiring to
33 purchase the real estate, who shall not vote on the
34 question).
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1 (Source: P.A. 87-855; 87-1197.)
2 (50 ILCS 105/3.2) (from Ch. 102, par. 3.2)
3 Sec. 3.2. Pecuniary interest allowed in contracts of
4 deposit and financial service with local banks and savings
5 and loan associations. Nothing contained in this Act,
6 including the restrictions set forth in subsections (b), (c),
7 and (d) of Section 3, shall preclude a contract of deposit of
8 monies, loans, or other financial services by a unit of local
9 government, school district, community college district,
10 State university, or a police or firefighter's pension fund
11 established under Article 3 or 4 of the Illinois Pension Code
12 with a local bank or local savings and loan association,
13 regardless of whether a member or members of the governing
14 body of the unit (including any director serving on a
15 hospital district board as provided under subsection (a-5) of
16 Section 13 of the Hospital District Law) are interested in
17 the bank or savings and loan association as a director, an
18 officer, employee, or holder of less than 7 1/2% of the total
19 ownership interest. A member or members holding such an
20 interest in such a contract shall not be deemed to be holding
21 a prohibited interest for purposes of this Act. The
22 interested member or members of the governing body must
23 publicly state the nature and extent of their interest during
24 deliberations concerning the proposed award of such a
25 contract, but shall not participate in any further
26 deliberations concerning the proposed award. The interested
27 member or members shall not vote on such a proposed award.
28 Any member or members abstaining from participation in
29 deliberations and voting under this Section may be considered
30 present for purposes of establishing a quorum. Award of such
31 a contract shall require approval by a majority vote of those
32 members presently holding office. Consideration and award of
33 any such contract in which a member or members are interested
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1 may only be made at a regularly scheduled public meeting of
2 the governing body of the unit or district.
3 (Source: P.A. 86-1179; 87-1096.)
4 Section 10. The Hospital District Law is amended by
5 changing Section 13 as follows:
6 (70 ILCS 910/13) (from Ch. 23, par. 1263)
7 Sec. 13. Qualification and removal of directors.
8 (a) The qualification of individuals to serve on the
9 board of directors of any Hospital District shall be
10 determined in accordance with Sections 3 and 3.2 of the
11 Public Officer Prohibited Activities Act "An Act to prevent
12 fraudulent and corrupt practices in the making or accepting
13 of official appointments and contracts by public officers",
14 approved April 9, 1872, as amended.
15 (a-5) Notwithstanding the provisions of subsection (a),
16 at least one member of the board of directors may be a member
17 of a district hospital medical staff.
18 (b) Should it appear to the appointing authority that
19 any member of the board of directors of a Hospital District
20 may be disqualified, guilty of misconduct or malfeasance in
21 office or unwilling or unable to act, the appointing
22 authority shall notify the member of that fact in writing and
23 it shall then be the duty of the member to show cause why he
24 should not be removed from office. Any such person shall be
25 given a hearing by the circuit court and, after such hearing,
26 if the circuit court finds such a charge should be sustained,
27 it shall remove the person so charged from office, and a
28 vacancy shall thereupon exist for the unexpired term of such
29 office.
30 (Source: P.A. 84-926.)