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| [ Senate Amendment 002 ] |
90_SB0594sam001
LRB9000659MWpcam
1 AMENDMENT TO SENATE BILL 594
2 AMENDMENT NO. . Amend Senate Bill 594 by replacing
3 everything after the enacting clause with the following:
4 "Section 5. The Public Officer Prohibited Activities Act
5 is amended by changing Section 3 as follows:
6 (50 ILCS 105/3) (from Ch. 102, par. 3)
7 Sec. 3. (a) No person holding any office, either by
8 election or appointment under the laws or Constitution of
9 this State, may be in any manner financially interested,
10 either directly or indirectly, in his own name or indirectly
11 in the name of any other person, association, trust or
12 corporation, in any contract or the performance of any work
13 in the making or letting of which such officer may be called
14 upon to act or vote. No such officer may represent, either as
15 agent or otherwise, any person, association, trust or
16 corporation, with respect to any application or bid for any
17 contract or work in regard to which such officer may be
18 called upon to vote. Nor may any such officer take or
19 receive, or offer to take or receive, either directly or
20 indirectly, any money or other thing of value as a gift or
21 bribe or means of influencing his vote or action in his
22 official character. Any contract made and procured in
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1 violation hereof is void. This Section shall not apply to
2 any person serving on an advisory panel or commission.
3 (b) However, any elected or appointed member of the
4 governing body may provide materials, merchandise, property,
5 services or labor, subject to the following provisions under
6 either (1) or (2)
7 (1) If:
8 A. the contract is with a person, firm,
9 partnership, association, corporation, or cooperative
10 association in which such interested member of the
11 governing body of the municipality has less than a 7 1/2%
12 share in the ownership; and
13 B. such interested member publicly discloses the
14 nature and extent of his interest prior to or during
15 deliberations concerning the proposed award of the
16 contract; and
17 C. such interested member abstains from voting on
18 the award of the contract, though he shall be considered
19 present for the purposes of establishing a quorum; and
20 D. such contract is approved by a majority vote of
21 those members presently holding office; and
22 E. the contract is awarded after sealed bids to the
23 lowest responsible bidder if the amount of the contract
24 exceeds $1500, or awarded without bidding if the amount
25 of the contract is less than $1500; and
26 F. the award of the contract would not cause the
27 aggregate amount of all such contracts so awarded to the
28 same person, firm, association, partnership, corporation
29 or cooperative association in the same fiscal year to
30 exceed $25,000.
31 (c) In addition to the above exemption, any elected or
32 appointed member of the governing body may provide materials,
33 merchandise, property, services or labor if:
34 (2) If:
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1 A. the award of the contract is approved by a
2 majority vote of the governing body of the municipality
3 provided that any such interested member shall abstain
4 from voting; and
5 B. the amount of the contract does not exceed
6 $2,000; and
7 C. the award of the contract would not cause the
8 aggregate amount of all such contracts so awarded to the
9 same person, firm, association, partnership, corporation
10 or cooperative association in the same fiscal year to
11 exceed $4,000; and
12 D. such interested member publicly discloses the
13 nature and extent of his interest prior to or during
14 deliberations concerning the proposed award of the
15 contract; and
16 E. such interested member abstains from voting on
17 the award of the contract, though he shall be considered
18 present for the purposes of establishing a quorum.
19 (b-5) In addition to the above exemptions, any elected
20 or appointed member of the governing body may provide
21 materials, merchandise, property, services, or labor if:
22 A. the contract is with a person, firm,
23 partnership, association, corporation, or cooperative
24 association in which the interested member of the
25 governing body of the municipality, advisory panel, or
26 commission has less than a 1% share in the ownership; and
27 B. the award of the contract is approved by a
28 majority vote of the governing body of the municipality
29 provided that any such interested member shall abstain
30 from voting; and
31 C. such interested member publicly discloses the
32 nature and extent of his interest before or during
33 deliberations concerning the proposed award of the
34 contract; and
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1 D. such interested member abstains from voting on
2 the award of the contract, though he shall be considered
3 present for the purposes of establishing a quorum.
4 (c)(d) A contract for the procurement of public utility
5 services by a public entity with a public utility company is
6 not barred by this Section by one or more members of the
7 governing body of the public entity being an officer or
8 employee of the public utility company or holding an
9 ownership interest of no more than 7 1/2% in the public
10 utility company, or holding an ownership interest of any size
11 if the public entity is a municipality with a population of
12 less than 7,500 and the public utility's rates are approved
13 by the Illinois Commerce Commission. An elected or appointed
14 member of the governing body of the public entity having such
15 an interest shall be deemed not to have a prohibited interest
16 under this Section.
17 (d)(e) Notwithstanding any other provision of this
18 Section or any other law to the contrary, until January 1,
19 1994, a member of the city council of a municipality with a
20 population under 20,000 may purchase real estate from the
21 municipality, at a price of not less than 100% of the value
22 of the real estate as determined by a written MAI certified
23 appraisal or by a written certified appraisal of a State
24 certified or licensed real estate appraiser, if the purchase
25 is approved by a unanimous vote of the city council members
26 then holding office (except for the member desiring to
27 purchase the real estate, who shall not vote on the
28 question).
29 (e) For the purposes of this Section only, a municipal
30 officer shall not be deemed interested if the officer is an
31 employee of a company or owns or holds an interest of 1% or
32 less in the municipal officer's individual name in a company,
33 or both, that company is involved in the transaction of
34 business with the municipality, and that company's stock is
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1 traded on a nationally recognized securities market, provided
2 the interested member: (i) publicly discloses the fact that
3 he or she is an employee or holds an interest of 1% or less
4 in a company before deliberation of the proposed award of the
5 contract; (ii) refrains from evaluating, recommending,
6 approving, deliberating, or otherwise participating in
7 negotiation, approval, or both, of the contract, work, or
8 business; (iii) abstains from voting on the award of the
9 contract though he or she shall be considered present for
10 purposes of establishing a quorum; and (iv) the contract is
11 approved by a majority vote of those members currently
12 holding office.
13 A municipal officer shall not be deemed interested if the
14 officer owns or holds an interest of 1% or less, not in the
15 officer's individual name but through a mutual fund, in a
16 company, that company is involved in the transaction of
17 business with the municipality, and that company's stock is
18 traded on a nationally recognized securities market.
19 (Source: P.A. 87-855; 87-1197.)
20 Section 10. The Illinois Municipal Code is amended by
21 changing Section 3.1-55-10 as follows:
22 (65 ILCS 5/3.1-55-10)
23 Sec. 3.1-55-10. Interests in contracts.
24 (a) A municipal officer shall not be financially
25 interested, directly or indirectly, in the officer's own name
26 or indirectly in the name of any other person, association,
27 trust, or corporation, in any contract, work, or business of
28 the municipality or in the sale of any article whenever the
29 expense, price, or consideration of the contract, work,
30 business, or sale is paid either from the treasury or by an
31 assessment levied by statute or ordinance. A municipal
32 officer shall not be interested, directly or indirectly, in
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1 the purchase of any property that (i) belongs to the
2 municipality, (ii) is sold for taxes or assessments, or (iii)
3 is sold by virtue of legal process at the suit of the
4 municipality. For the purposes of this Section only,
5 however, a municipal officer shall not be deemed interested
6 if the officer is an employee of a company or owns or holds
7 an interest of 1% or less in the municipal officer's
8 individual name in a company, or both, that company is
9 involved in the transaction of business with the
10 municipality, and that company's stock is traded on a
11 nationally recognized securities market, provided the
12 interested member (i) publically discloses the fact that he
13 or she is an employee or holds an interest of 1% of less in a
14 company before deliberation of the proposed award of the
15 contract; (ii) refrains from evaluating, recommending,
16 approving, deliberating, or otherwise participating in the
17 negotiation, approval, or both, of the contract, work, or
18 business; (iii) abstains from voting on the award of the
19 contract though he or she shall be considered present for
20 purposes of establishing a quorum; and (iv) the contract is
21 approved by a majority vote of those members currently
22 holding office.
23 A municipal officer shall not be deemed interested if the
24 officer owns or holds an interest of 1% or less, not in the
25 officer's individual name but through a mutual fund, in a
26 company, that company is involved in the transaction of
27 business with the municipality, and that company's stock is
28 traded on a nationally recognized securities market.
29 This Section does not prohibit any person serving on a
30 municipal advisory panel or commission or nongoverning board
31 or commission from having an interest in a contract, work, or
32 business of the municipality unless the municipal officer's
33 duties include evaluating, recommending, approving, or voting
34 to recommend or approve the contract, work, or business.
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1 (b) Any elected or appointed member of the governing
2 body and any person serving on a municipal advisory panel or
3 commission or nongoverning board or commission may, however,
4 provide materials, merchandise, property, services, or labor,
5 subject to the following provisions under either (1) or (2)
6 if:
7 (1) If:
8 (A)(1) the contract is with a person, firm,
9 partnership, association, corporation, or cooperative
10 association in which the interested member of the
11 governing body of the municipality or advisory panel or
12 commission member has less than a 7 1/2% share in the
13 ownership;
14 (B)(2) in the case of an elected or appointed
15 member of the governing body, the interested member
16 publicly discloses the nature and extent of the interest
17 before or during deliberations concerning the proposed
18 award of the contract;
19 (C)(3) in the case of an elected or appointed
20 member of the governing body, the interested member
21 abstains from voting on the award of the contract (though
22 the member shall be considered present for the purposes
23 of establishing a quorum);
24 (D)(4) the contract is approved by a majority vote
25 of those members presently holding office;
26 (E)(5) the contract is awarded after sealed bids to
27 the lowest responsible bidder if the amount of the
28 contract exceeds $1,500 (but the contract may be awarded
29 without bidding if the amount is less than $1,500); and
30 (F)(6) the award of the contract would not cause
31 the aggregate amount of all contracts so awarded to the
32 same person, firm, association, partnership, corporation,
33 or cooperative association in the same fiscal year to
34 exceed $25,000.
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1 (2) If:
2 (c) In addition to the exemption in subsection (b), an
3 elected or appointed member of the governing body and any
4 person serving on a municipal advisory panel or commission
5 may provide materials, merchandise, property, services, or
6 labor if:
7 (A)(1) the award of the contract is approved by a
8 majority vote of the governing body of the municipality
9 (provided that, in the case of an elected or appointed
10 member of the governing body, the interested member shall
11 abstain from voting);
12 (B)(2) the amount of the contract does not exceed
13 $2,000;
14 (C)(3) the award of the contract would not cause
15 the aggregate amount of all contracts so awarded to the
16 same person, firm, association, partnership, corporation,
17 or cooperative association in the same fiscal year to
18 exceed $4,000;
19 (D)(4) in the case of an elected or appointed
20 member of the governing body, the interested member
21 publicly discloses the nature and extent of his interest
22 before or during deliberations concerning the proposed
23 award of the contract; and
24 (E)(5) in the case of an elected or appointed
25 member of the governing body, the interested member
26 abstains from voting on the award of the contract (though
27 the member shall be considered present for the purposes
28 of establishing a quorum).
29 (b-5) In addition to the above exemptions, any elected
30 or appointed member of the governing body may provide
31 materials, merchandise, property, services, or labor if:
32 (1) the contract is with a person, firm,
33 partnership, association, corporation, or cooperative
34 association in which the interested member of the
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1 governing body of the municipality, advisory panel, or
2 commission has less than a 1% share in the ownership; and
3 (2) the award of the contract is approved by a
4 majority vote of the governing body of the municipality
5 provided that any such interested member shall abstain
6 from voting; and
7 (3) such interested member publicly discloses the
8 nature and extent of his interest before or during
9 deliberations concerning the proposed award of the
10 contract; and
11 (4) such interested member abstains from voting on
12 the award of the contract, though he shall be considered
13 present for the purposes of establishing a quorum.
14 (c)(d) A contract for the procurement of public utility
15 services by a municipality with a public utility company is
16 not barred by this Section by one or more members of the
17 governing body being an officer or employee of the public
18 utility company, or holding an ownership interest in no more
19 than 7 1/2% in the public utility company, or holding an
20 ownership interest of any size if the municipality has a
21 population of less than 7,500 and the public utility's rates
22 are approved by the Illinois Commerce Commission. An elected
23 or appointed member of the governing body or a nongoverning
24 board or commission having an interest described in this
25 subsection (d) does not have a prohibited interest under this
26 Section.
27 (d)(e) An officer who violates this Section is guilty of
28 a Class 4 felony. In addition, any office held by an officer
29 so convicted shall become vacant and shall be so declared as
30 part of the judgment of the court.
31 (e)(f) Nothing contained in this Section, including the
32 restrictions set forth in subsections (b), (c), and (d),
33 shall preclude a contract of deposit of moneys, loans, or
34 other financial services by a municipality with a local bank
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1 or local savings and loan association, regardless of whether
2 a member of the governing body or a nongoverning board or
3 commission of the municipality is interested in the bank or
4 savings and loan association as an officer or employee or as
5 a holder of less than 7 1/2% of the total ownership interest.
6 A member holding an interest described in this subsection (f)
7 in a contract does not hold a prohibited interest for
8 purposes of this Act. The interested member of the governing
9 body or a nongoverning board or commission must publicly
10 state the nature and extent of the interest during
11 deliberations concerning the proposed award of the contract
12 but shall not participate in any further deliberations
13 concerning the proposed award. The interested member shall
14 not vote on the proposed award. A member abstaining from
15 participation in deliberations and voting under this Section
16 may be considered present for purposes of establishing a
17 quorum. Award of the contract shall require approval by a
18 majority vote of those members presently holding office.
19 Consideration and award of a contract in which a member is
20 interested may only be made at a regularly scheduled public
21 meeting of the governing body of the municipality.
22 (f)(g) Notwithstanding any other provision of this
23 Section or any other law to the contrary, until January 1,
24 1994, a member of the city council of a municipality with a
25 population under 20,000 may purchase real estate from the
26 municipality, at a price of not less than 100% of the value
27 of the real estate as determined by a written MAI certified
28 appraisal or by a written certified appraisal of a State
29 certified or licensed real estate appraiser, if the purchase
30 is approved by a unanimous vote of the city council members
31 then holding office (except for the member desiring to
32 purchase the real estate, who shall not vote on the
33 question).
34 (Source: P.A. 87-1119; 87-1197; 88-45; 88-572, eff.
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1 8-11-94.)".