Public Act 90-0197 of the 90th General Assembly
Public Act 90-0197
SB234 Enrolled LRB9002102PTcw
AN ACT concerning hospital district directors.
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 Sections 3 and 3.2 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 interested, either directly or indirectly,
in his own name or 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, 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.
(c) In addition to the above exemption, any elected or
appointed member of the governing body may provide materials,
merchandise, property, services, or labor 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.
(d) 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.
(e) 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).
(Source: P.A. 87-855; 87-1197.)
(50 ILCS 105/3.2) (from Ch. 102, par. 3.2)
Sec. 3.2. Pecuniary interest allowed in contracts of
deposit and financial service with local banks and savings
and loan associations. Nothing contained in this Act,
including the restrictions set forth in subsections (b), (c),
and (d) of Section 3, shall preclude a contract of deposit of
monies, loans, or other financial services by a unit of local
government, school district, community college district,
State university, or a police or firefighter's pension fund
established under Article 3 or 4 of the Illinois Pension Code
with a local bank or local savings and loan association,
regardless of whether a member or members of the governing
body of the unit (including any director serving on a
hospital district board as provided under subsection (a-5) of
Section 13 of the Hospital District Law) are interested in
the bank or savings and loan association as a director, an
officer, employee, or holder of less than 7 1/2% of the total
ownership interest. A member or members holding such an
interest in such a contract shall not be deemed to be holding
a prohibited interest for purposes of this Act. The
interested member or members of the governing body must
publicly state the nature and extent of their interest during
deliberations concerning the proposed award of such a
contract, but shall not participate in any further
deliberations concerning the proposed award. The interested
member or members shall not vote on such a proposed award.
Any member or members abstaining from participation in
deliberations and voting under this Section may be considered
present for purposes of establishing a quorum. Award of such
a contract shall require approval by a majority vote of those
members presently holding office. Consideration and award of
any such contract in which a member or members are interested
may only be made at a regularly scheduled public meeting of
the governing body of the unit or district.
(Source: P.A. 86-1179; 87-1096.)
Section 10. The Hospital District Law is amended by
changing Section 13 as follows:
(70 ILCS 910/13) (from Ch. 23, par. 1263)
Sec. 13. Qualification and removal of directors.
(a) The qualification of individuals to serve on the
board of directors of any Hospital District shall be
determined in accordance with Sections 3 and 3.2 of the
Public Officer Prohibited Activities Act "An Act to prevent
fraudulent and corrupt practices in the making or accepting
of official appointments and contracts by public officers",
approved April 9, 1872, as amended.
(a-5) Notwithstanding the provisions of subsection (a),
at least one member of the board of directors may be a member
of a district hospital medical staff.
(b) Should it appear to the appointing authority that
any member of the board of directors of a Hospital District
may be disqualified, guilty of misconduct or malfeasance in
office or unwilling or unable to act, the appointing
authority shall notify the member of that fact in writing and
it shall then be the duty of the member to show cause why he
should not be removed from office. Any such person shall be
given a hearing by the circuit court and, after such hearing,
if the circuit court finds such a charge should be sustained,
it shall remove the person so charged from office, and a
vacancy shall thereupon exist for the unexpired term of such
office.
(Source: P.A. 84-926.)