Illinois General Assembly - Full Text of Public Act 096-0277
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Public Act 096-0277


 

Public Act 0277 96TH GENERAL ASSEMBLY



 


 
Public Act 096-0277
 
HB2410 Enrolled LRB096 09519 RLJ 19676 b

    AN ACT concerning local government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Public Officer Prohibited Activities Act is
amended by changing Section 3 as follows:
 
    (50 ILCS 105/3)  (from Ch. 102, par. 3)
    Sec. 3. Prohibited interest in contracts.
    (a) No person holding any office, either by election or
appointment under the laws or Constitution of this State, may
be in any manner financially interested directly in his own
name or indirectly in the name of any other person,
association, trust, or corporation, in any contract or the
performance of any work in the making or letting of which such
officer may be called upon to act or vote. No such officer may
represent, either as agent or otherwise, any person,
association, trust, or corporation, with respect to any
application or bid for any contract or work in regard to which
such officer may be called upon to vote. Nor may any such
officer take or receive, or offer to take or receive, either
directly or indirectly, any money or other thing of value as a
gift or bribe or means of influencing his vote or action in his
official character. Any contract made and procured in violation
hereof is void. This Section shall not apply to any person
serving on an advisory panel or commission or to any director
serving on a hospital district board as provided under
subsection (a-5) of Section 13 of the Hospital District Law.
    (b) However, any elected or appointed member of the
governing body may provide materials, merchandise, property,
services, or labor, subject to the following provisions under
either paragraph (1) or (2):
        (1) If:
        A. the contract is with a person, firm, partnership,
    association, corporation, or cooperative association in
    which such interested member of the governing body of the
    municipality has less than a 7 1/2% share in the ownership;
    and
        B. such interested member publicly discloses the
    nature and extent of his interest prior to or during
    deliberations concerning the proposed award of the
    contract; and
        C. such interested member abstains from voting on the
    award of the contract, though he shall be considered
    present for the purposes of establishing a quorum; and
        D. such contract is approved by a majority vote of
    those members presently holding office; and
        E. the contract is awarded after sealed bids to the
    lowest responsible bidder if the amount of the contract
    exceeds $1500, or awarded without bidding if the amount of
    the contract is less than $1500; and
        F. the award of the contract would not cause the
    aggregate amount of all such contracts so awarded to the
    same person, firm, association, partnership, corporation,
    or cooperative association in the same fiscal year to
    exceed $25,000.
        (2) If:
        A. the award of the contract is approved by a majority
    vote of the governing body of the municipality provided
    that any such interested member shall abstain from voting;
    and
        B. the amount of the contract does not exceed $2,000;
    and
        C. the award of the contract would not cause the
    aggregate amount of all such contracts so awarded to the
    same person, firm, association, partnership, corporation,
    or cooperative association in the same fiscal year to
    exceed $4,000; and
        D. such interested member publicly discloses the
    nature and extent of his interest prior to or during
    deliberations concerning the proposed award of the
    contract; and
        E. such interested member abstains from voting on the
    award of the contract, though he shall be considered
    present for the purposes of establishing a quorum.
    (b-5) In addition to the above exemptions, any elected or
appointed member of the governing body may provide materials,
merchandise, property, services, or labor if:
        A. the contract is with a person, firm, partnership,
    association, corporation, or cooperative association in
    which the interested member of the governing body of the
    municipality, advisory panel, or commission has less than a
    1% share in the ownership; and
        B. the award of the contract is approved by a majority
    vote of the governing body of the municipality provided
    that any such interested member shall abstain from voting;
    and
        C. such interested member publicly discloses the
    nature and extent of his interest before or during
    deliberations concerning the proposed award of the
    contract; and
        D. such interested member abstains from voting on the
    award of the contract, though he shall be considered
    present for the purposes of establishing a quorum.
    (c) A contract for the procurement of public utility
services by a public entity with a public utility company is
not barred by this Section by one or more members of the
governing body of the public entity being an officer or
employee of the public utility company or holding an ownership
interest of no more than 7 1/2% in the public utility company,
or holding an ownership interest of any size if the public
entity is a municipality with a population of less than 7,500
and the public utility's rates are approved by the Illinois
Commerce Commission. An elected or appointed member of the
governing body of the public entity having such an interest
shall be deemed not to have a prohibited interest under this
Section.
    (d) Notwithstanding any other provision of this Section or
any other law to the contrary, until January 1, 1994, a member
of the city council of a municipality with a population under
20,000 may purchase real estate from the municipality, at a
price of not less than 100% of the value of the real estate as
determined by a written MAI certified appraisal or by a written
certified appraisal of a State certified or licensed real
estate appraiser, if the purchase is approved by a unanimous
vote of the city council members then holding office (except
for the member desiring to purchase the real estate, who shall
not vote on the question).
    (e) For the purposes of this Section only, a municipal
officer shall not be deemed interested if the officer is an
employee of a company or owns or holds an interest of 1% or
less in the municipal officer's individual name in a company,
or both, 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, provided
the interested member: (i) publicly discloses the fact that he
or she is an employee or holds an interest of 1% or less in a
company before deliberation of the proposed award of the
contract; (ii) refrains from evaluating, recommending,
approving, deliberating, or otherwise participating in
negotiation, approval, or both, of the contract, work, or
business; (iii) abstains from voting on the award of the
contract though he or she shall be considered present for
purposes of establishing a quorum; and (iv) the contract is
approved by a majority vote of those members currently holding
office.
    A municipal officer shall not be deemed interested 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.
    (f) Under either of the following circumstances, a
municipal 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 municipality:
        (1) If the municipal officer is appointed by the
    governing body of the municipality to represent the
    interests of the municipality on a not-for-profit
    corporation's board, then the municipal officer may
    actively vote on matters involving either that board or the
    municipality, at any time, so long as the membership on the
    not-for-profit board is not a paid position, except that
    the municipal officer may be reimbursed by the
    non-for-profit board for expenses incurred as the result of
    membership on the non-for-profit board.
        (2) If the municipal officer is not appointed to the
    governing body of a not-for-profit corporation by the
    governing body of the municipality, then the municipal
    officer may continue to serve; however, the municipal
    officer shall abstain from voting on any proposition before
    the municipal governing body directly involving the
    not-for-profit corporation and, for those matters, shall
    not be counted as present for the purposes of a quorum of
    the municipal governing body.
(Source: P.A. 90-197, eff. 1-1-98; 90-364, eff, 1-1-98; 90-655,
eff. 7-30-98.)
 
    Section 10. The Illinois Municipal Code is amended by
changing Section 3.1-55-10 as follows:
 
    (65 ILCS 5/3.1-55-10)
    Sec. 3.1-55-10. Interests in contracts.
    (a) A municipal officer shall not be financially interested
directly in the officer's own name or indirectly in the name of
any other person, association, trust, or corporation, in any
contract, work, or business of the municipality or in the sale
of any article whenever the expense, price, or consideration of
the contract, work, business, or sale is paid either from the
treasury or by an assessment levied by statute or ordinance. A
municipal officer shall not be interested, directly or
indirectly, in the purchase of any property that (i) belongs to
the municipality, (ii) is sold for taxes or assessments, or
(iii) is sold by virtue of legal process at the suit of the
municipality. For the purposes of this Section only, however, a
municipal officer shall not be deemed interested if the officer
is an employee of a company or owns or holds an interest of 1%
or less in the municipal officer's individual name in a
company, or both, 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, provided
the interested member (i) publicly discloses the fact that he
or she is an employee or holds an interest of 1% or less in a
company before deliberation of the proposed award of the
contract; (ii) refrains from evaluating, recommending,
approving, deliberating, or otherwise participating in the
negotiation, approval, or both, of the contract, work, or
business; (iii) abstains from voting on the award of the
contract though he or she shall be considered present for
purposes of establishing a quorum; and (iv) the contract is
approved by a majority vote of those members currently holding
office.
    A municipal officer shall not be deemed interested 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.
    This Section does not prohibit any person serving on a
municipal advisory panel or commission or nongoverning board or
commission from having an interest in a contract, work, or
business of the municipality unless the municipal officer's
duties include evaluating, recommending, approving, or voting
to recommend or approve the contract, work, or business.
    (b) Any elected or appointed member of the governing body
may, however, provide materials, merchandise, property,
services, or labor, subject to the following provisions under
either (1) or (2):
        (1) If:
            (A) the contract is with a person, firm,
        partnership, association, corporation, or cooperative
        association in which the interested member of the
        governing body of the municipality member has less than
        a 7 1/2% share in the ownership;
            (B) the interested member publicly discloses the
        nature and extent of the interest before or during
        deliberations concerning the proposed award of the
        contract;
            (C) the interested member abstains from voting on
        the award of the contract (though the member shall be
        considered present for the purposes of establishing a
        quorum);
            (D) the contract is approved by a majority vote of
        those members presently holding office;
            (E) the contract is awarded after sealed bids to
        the lowest responsible bidder if the amount of the
        contract exceeds $1,500 (but the contract may be
        awarded without bidding if the amount is less than
        $1,500); and
            (F) the award of the contract would not cause the
        aggregate amount of all contracts so awarded to the
        same person, firm, association, partnership,
        corporation, or cooperative association in the same
        fiscal year to exceed $25,000.
        (2) If:
            (A) the award of the contract is approved by a
        majority vote of the governing body of the municipality
        (provided that the interested member shall abstain
        from voting);
            (B) the amount of the contract does not exceed
        $2,000;
            (C) the award of the contract would not cause the
        aggregate amount of all contracts so awarded to the
        same person, firm, association, partnership,
        corporation, or cooperative association in the same
        fiscal year to exceed $4,000;
            (D) the interested member publicly discloses the
        nature and extent of his interest before or during
        deliberations concerning the proposed award of the
        contract; and
            (E) the interested member abstains from voting on
        the award of the contract (though the member shall be
        considered present for the purposes of establishing a
        quorum).
    (b-5) In addition to the above exemptions, any elected or
appointed member of the governing body may provide materials,
merchandise, property, services, or labor if:
        (1) the contract is with a person, firm, partnership,
    association, corporation, or cooperative association in
    which the interested member of the governing body of the
    municipality, advisory panel, or commission has less than a
    1% share in the ownership; and
        (2) the award of the contract is approved by a majority
    vote of the governing body of the municipality provided
    that any such interested member shall abstain from voting;
    and
        (3) such interested member publicly discloses the
    nature and extent of his interest before or during
    deliberations concerning the proposed award of the
    contract; and
        (4) such interested member abstains from voting on the
    award of the contract, though he shall be considered
    present for the purposes of establishing a quorum.
    (c) A contract for the procurement of public utility
services by a municipality with a public utility company is not
barred by this Section by one or more members of the governing
body being an officer or employee of the public utility
company, or holding an ownership interest in no more than 7
1/2% in the public utility company, or holding an ownership
interest of any size if the municipality has a population of
less than 7,500 and the public utility's rates are approved by
the Illinois Commerce Commission. An elected or appointed
member of the governing body or a nongoverning board or
commission having an interest described in this subsection (d)
does not have a prohibited interest under this Section.
    (d) An officer who violates this Section is guilty of a
Class 4 felony. In addition, any office held by an officer so
convicted shall become vacant and shall be so declared as part
of the judgment of the court.
    (e) Nothing contained in this Section, including the
restrictions set forth in subsections (b) and (c), shall
preclude a contract of deposit of moneys, loans, or other
financial services by a municipality with a local bank or local
savings and loan association, regardless of whether a member of
the governing body of the municipality is interested in the
bank or savings and loan association as an officer or employee
or as a holder of less than 7 1/2% of the total ownership
interest. A member holding an interest described in this
subsection (e) in a contract does not hold a prohibited
interest for purposes of this Act. The interested member of the
governing body must publicly state the nature and extent of the
interest during deliberations concerning the proposed award of
the contract but shall not participate in any further
deliberations concerning the proposed award. The interested
member shall not vote on the proposed award. A member
abstaining from participation in deliberations and voting
under this Section may be considered present for purposes of
establishing a quorum. Award of the contract shall require
approval by a majority vote of those members presently holding
office. Consideration and award of a contract in which a member
is interested may only be made at a regularly scheduled public
meeting of the governing body of the municipality.
    (f) Notwithstanding any other provision of this Section or
any other law to the contrary, until January 1, 1994, a member
of the city council of a municipality with a population under
20,000 may purchase real estate from the municipality, at a
price of not less than 100% of the value of the real estate as
determined by a written MAI certified appraisal or by a written
certified appraisal of a State certified or licensed real
estate appraiser, if the purchase is approved by a unanimous
vote of the city council members then holding office (except
for the member desiring to purchase the real estate, who shall
not vote on the question).
    (g) Under either of the following circumstances, a
municipal 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 municipality:
        (1) If the municipal officer is appointed by the
    governing body of the municipality to represent the
    interests of the municipality on a not-for-profit
    corporation's board, then the municipal officer may
    actively vote on matters involving either that board or the
    municipality, at any time, so long as the membership on the
    not-for-profit board is not a paid position, except that
    the municipal officer may be reimbursed by the
    not-for-profit board for expenses incurred as the result of
    membership on the not-for-profit board.
        (2) If the municipal officer is not appointed to the
    governing body of a not-for-profit corporation by the
    governing body of the municipality, then the municipal
    officer may continue to serve; however, the municipal
    officer shall abstain from voting on any proposition before
    the municipal governing body directly involving the
    not-for-profit corporation and, for those matters, shall
    not be counted as present for the purposes of a quorum of
    the municipal governing body.
(Source: P.A. 92-651, eff. 7-11-02.)

Effective Date: 1/1/2010