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[ Senate Amendment 002 ] |
90_SB0594 50 ILCS 105/3 from Ch. 102, par. 3 65 ILCS 5/3.1-55-10 Amends the Public Officer Prohibited Activities Act and the Illinois Municipal Code. Provides that a municipal officer is not deemed interested in a company if the officer is an employee of or owns or holds an interest of 1% or less, or both, in the officer's individual name in a company that is involved in the transaction of business with the municipality and that company's stock is traded on a nationally recognized securities market. Provides that a municipal officer is not deemed interested in a company if the officer owns or holds an interest of 1% or less, not in the officer's individual name but through a mutual fund, in a company, that company is involved in the transaction of business with the municipality, and that company's stock is traded on a nationally recognized securities market. Provides that any person serving on a municipal advisory panel or commission or nongoverning board or commission is not prohibited (now is prohibited) from having an interest in the transaction of business with the municipality unless that person's duties include evaluating, recommending, approving, or voting to recommend or approve the business. LRB9000659MWpcB LRB9000659MWpcB 1 AN ACT concerning municipal officers, amending named 2 Acts. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Public Officer Prohibited Activities Act 6 is amended by changing Section 3 as follows: 7 (50 ILCS 105/3) (from Ch. 102, par. 3) 8 Sec. 3. (a) No person holding any office, either by 9 election or appointment under the laws or Constitution of 10 this State, may be in any manner financially interested,11eitherdirectlyor indirectly,in his own name or indirectly 12 in the name of any other person, association, trust or 13 corporation, in any contract or the performance of any work 14 in the making or letting of which such officer may be called 15 upon to act or vote. No such officer may represent, either as 16 agent or otherwise, any person, association, trust or 17 corporation, with respect to any application or bid for any 18 contract or work in regard to which such officer may be 19 called upon to vote. Nor may any such officer take or 20 receive, or offer to take or receive, either directly or 21 indirectly, any money or other thing of value as a gift or 22 bribe or means of influencing his vote or action in his 23 official character. Any contract made and procured in 24 violation hereof is void. This Section shall not apply to 25 any person serving on an advisory panel or commission. 26 (b) However, any elected or appointed member of the 27 governing body may provide materials, merchandise, property, 28 services or labor, if: 29 A. the contract is with a person, firm, 30 partnership, association, corporation, or cooperative 31 association in which such interested member of the -2- LRB9000659MWpcB 1 governing body of the municipality has less than a 7 1/2% 2 share in the ownership; and 3 B. 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 C. 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; and 10 D. such contract is approved by a majority vote of 11 those members presently holding office; and 12 E. the contract is awarded after sealed bids to the 13 lowest responsible bidder if the amount of the contract 14 exceeds $1500, or awarded without bidding if the amount 15 of the contract is less than $1500; and 16 F. the award of the contract would not cause the 17 aggregate amount of all such contracts so awarded to the 18 same person, firm, association, partnership, corporation 19 or cooperative association in the same fiscal year to 20 exceed $25,000. 21 (c) In addition to the above exemption, any elected or 22 appointed member of the governing body may provide materials, 23 merchandise, property, services or labor if: 24 A. the award of the contract is approved by a 25 majority vote of the governing body of the municipality 26 provided that any such interested member shall abstain 27 from voting; and 28 B. the amount of the contract does not exceed 29 $2,000; and 30 C. the award of the contract would not cause the 31 aggregate amount of all such contracts so awarded to the 32 same person, firm, association, partnership, corporation 33 or cooperative association in the same fiscal year to 34 exceed $4,000; and -3- LRB9000659MWpcB 1 D. such interested member publicly discloses the 2 nature and extent of his interest prior to or during 3 deliberations concerning the proposed award of the 4 contract; and 5 E. such interested member abstains from voting on 6 the award of the contract, though he shall be considered 7 present for the purposes of establishing a quorum. 8 (d) A contract for the procurement of public utility 9 services by a public entity with a public utility company is 10 not barred by this Section by one or more members of the 11 governing body of the public entity being an officer or 12 employee of the public utility company or holding an 13 ownership interest of no more than 7 1/2% in the public 14 utility company, or holding an ownership interest of any size 15 if the public entity is a municipality with a population of 16 less than 7,500 and the public utility's rates are approved 17 by the Illinois Commerce Commission. An elected or appointed 18 member of the governing body of the public entity having such 19 an interest shall be deemed not to have a prohibited interest 20 under this Section. 21 (e) Notwithstanding any other provision of this Section 22 or any other law to the contrary, until January 1, 1994, a 23 member of the city council of a municipality with a 24 population under 20,000 may purchase real estate from the 25 municipality, at a price of not less than 100% of the value 26 of the real estate as determined by a written MAI certified 27 appraisal or by a written certified appraisal of a State 28 certified or licensed real estate appraiser, if the purchase 29 is approved by a unanimous vote of the city council members 30 then holding office (except for the member desiring to 31 purchase the real estate, who shall not vote on the 32 question). 33 (f) For the purposes of this Section only, a municipal 34 officer shall not be deemed interested if the officer is an -4- LRB9000659MWpcB 1 employee of a company or owns or holds an interest of 1% or 2 less in the municipal officer's individual name in a company, 3 or both, that company is involved in the transaction of 4 business with the municipality, and that company's stock is 5 traded on a nationally recognized securities market, provided 6 the interested member: (i) publicly discloses the fact that 7 he or she is an employee or holds an interest of 1% or less 8 in a company before deliberation of the proposed award of the 9 contract; (ii) refrains from evaluating, recommending, 10 approving, deliberating, or otherwise participating in 11 negotiation, approval, or both, of the contract, work, or 12 business; (iii) abstains from voting on the award of the 13 contract though he or she shall be considered present for 14 purposes of establishing a quorum; and (iv) the contract is 15 approved by a majority vote of those members currently 16 holding office. 17 A municipal officer shall not be deemed interested if the 18 officer owns or holds an interest of 1% or less, not in the 19 officer's individual name but through a mutual fund, in a 20 company, that company is involved in the transaction of 21 business with the municipality, and that company's stock is 22 traded on a nationally recognized securities market. 23 (Source: P.A. 87-855; 87-1197.) 24 Section 10. The Illinois Municipal Code is amended by 25 changing Section 3.1-55-10 as follows: 26 (65 ILCS 5/3.1-55-10) 27 Sec. 3.1-55-10. Interests in contracts. 28 (a) A municipal officer shall not be financially 29 interested,directlyor indirectly,in the officer's own name 30 or indirectly in the name of any other person, association, 31 trust, or corporation, in any contract, work, or business of 32 the municipality or in the sale of any article whenever the -5- LRB9000659MWpcB 1 expense, price, or consideration of the contract, work, 2 business, or sale is paid either from the treasury or by an 3 assessment levied by statute or ordinance. A municipal 4 officer shall not be interested, directly or indirectly, in 5 the purchase of any property that (i) belongs to the 6 municipality, (ii) is sold for taxes or assessments, or (iii) 7 is sold by virtue of legal process at the suit of the 8 municipality. For the purposes of this Section only, 9 however, a municipal officer shall not be deemed interested 10 if the officer is an employee of a company or owns or holds 11 an interest of 1% or less in the municipal officer's 12 individual name in a company, or both, that company is 13 involved in the transaction of business with the 14 municipality, and that company's stock is traded on a 15 nationally recognized securities market, provided the 16 interested member (i) publically discloses the fact that he 17 or she is an employee or holds an interest of 1% of less in a 18 company before deliberation of the proposed award of the 19 contract; (ii) refrains from evaluating, recommending, 20 approving, deliberating, or otherwise participating in the 21 negotiation, approval, or both, of the contract, work, or 22 business; (iii) abstains from voting on the award of the 23 contract though he or she shall be considered present for 24 purposes of establishing a quorum; and (iv) the contract is 25 approved by a majority vote of those members currently 26 holding office. 27 A municipal officer shall not be deemed interested if the 28 officer owns or holds an interest of 1% or less, not in the 29 officer's individual name but through a mutual fund, in a 30 company, that company is involved in the transaction of 31 business with the municipality, and that company's stock is 32 traded on a nationally recognized securities market. 33 This Section does not prohibit any person serving on a 34 municipal advisory panel or commission or nongoverning board -6- LRB9000659MWpcB 1 or commission from having an interest in a contract, work, or 2 business of the municipality unless the municipal officer's 3 duties include evaluating, recommending, approving, or voting 4 to recommend or approve the contract, work, or business. 5 (b) Any elected or appointed member of the governing 6 bodyand any person serving on a municipal advisory panel or7commission or nongoverning board or commissionmay, however, 8 provide materials, merchandise, property, services, or labor, 9 if: 10 (1) the contract is with a person, firm, 11 partnership, association, corporation, or cooperative 12 association in which the interested member of the 13 governing body of the municipalityor advisory panel or14commissionmember has less than a 7 1/2% share in the 15 ownership; 16 (2)in the case of an elected or appointed member17of the governing body,the interested member publicly 18 discloses the nature and extent of the interest before or 19 during deliberations concerning the proposed award of the 20 contract; 21 (3)in the case of an elected or appointed member22of the governing body,the interested member abstains 23 from voting on the award of the contract (though the 24 member shall be considered present for the purposes of 25 establishing a quorum); 26 (4) the contract is approved by a majority vote of 27 those members presently holding office; 28 (5) the contract is awarded after sealed bids to 29 the lowest responsible bidder if the amount of the 30 contract exceeds $1,500 (but the contract may be awarded 31 without bidding if the amount is less than $1,500); and 32 (6) the award of the contract would not cause the 33 aggregate amount of all contracts so awarded to the same 34 person, firm, association, partnership, corporation, or -7- LRB9000659MWpcB 1 cooperative association in the same fiscal year to exceed 2 $25,000. 3 (c) In addition to the exemption in subsection (b), an 4 elected or appointed member of the governing bodyand any5person serving on a municipal advisory panel or commission6 may provide materials, merchandise, property, services, or 7 labor if: 8 (1) the award of the contract is approved by a 9 majority vote of the governing body of the municipality 10 (provided that, in the case of an elected or appointed11member of the governing body,the interested member shall 12 abstain from voting); 13 (2) the amount of the contract does not exceed 14 $2,000; 15 (3) the award of the contract would not cause the 16 aggregate amount of all contracts so awarded to the same 17 person, firm, association, partnership, corporation, or 18 cooperative association in the same fiscal year to exceed 19 $4,000; 20 (4)in the case of an elected or appointed member21of the governing body,the interested member publicly 22 discloses the nature and extent of his interest before or 23 during deliberations concerning the proposed award of the 24 contract; and 25 (5)in the case of an elected or appointed member26of the governing body,the interested member abstains 27 from voting on the award of the contract (though the 28 member shall be considered present for the purposes of 29 establishing a quorum). 30 (d) A contract for the procurement of public utility 31 services by a municipality with a public utility company is 32 not barred by this Section by one or more members of the 33 governing body being an officer or employee of the public 34 utility company, or holding an ownership interest in no more -8- LRB9000659MWpcB 1 than 7 1/2% in the public utility company, or holding an 2 ownership interest of any size if the municipality has a 3 population of less than 7,500 and the public utility's rates 4 are approved by the Illinois Commerce Commission. An elected 5 or appointed member of the governing body or a nongoverning 6 board or commission having an interest described in this 7 subsection (d) does not have a prohibited interest under this 8 Section. 9 (e) An officer who violates this Section is guilty of a 10 Class 4 felony. In addition, any office held by an officer 11 so convicted shall become vacant and shall be so declared as 12 part of the judgment of the court. 13 (f) Nothing contained in this Section, including the 14 restrictions set forth in subsections (b), (c), and (d), 15 shall preclude a contract of deposit of moneys, loans, or 16 other financial services by a municipality with a local bank 17 or local savings and loan association, regardless of whether 18 a member of the governing bodyor a nongoverning board or19commissionof the municipality is interested in the bank or 20 savings and loan association as an officer or employee or as 21 a holder of less than 7 1/2% of the total ownership interest. 22 A member holding an interest described in this subsection (f) 23 in a contract does not hold a prohibited interest for 24 purposes of this Act. The interested member of the governing 25 bodyor a nongoverning board or commissionmust publicly 26 state the nature and extent of the interest during 27 deliberations concerning the proposed award of the contract 28 but shall not participate in any further deliberations 29 concerning the proposed award. The interested member shall 30 not vote on the proposed award. A member abstaining from 31 participation in deliberations and voting under this Section 32 may be considered present for purposes of establishing a 33 quorum. Award of the contract shall require approval by a 34 majority vote of those members presently holding office. -9- LRB9000659MWpcB 1 Consideration and award of a contract in which a member is 2 interested may only be made at a regularly scheduled public 3 meeting of the governing body of the municipality. 4 (g) Notwithstanding any other provision of this Section 5 or any other law to the contrary, until January 1, 1994, a 6 member of the city council of a municipality with a 7 population under 20,000 may purchase real estate from the 8 municipality, at a price of not less than 100% of the value 9 of the real estate as determined by a written MAI certified 10 appraisal or by a written certified appraisal of a State 11 certified or licensed real estate appraiser, if the purchase 12 is approved by a unanimous vote of the city council members 13 then holding office (except for the member desiring to 14 purchase the real estate, who shall not vote on the 15 question). 16 (Source: P.A. 87-1119; 87-1197; 88-45; 88-572, eff. 8-11-94.)