Public Act 098-1083
 
HB5812 EnrolledLRB098 18013 JLK 53140 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, to any director 
serving on a hospital
district board as provided under 
subsection (a-5) of Section 13 of the Hospital
District Law, or 
to any person serving as both a contractual employee and as a 
member of a public hospital board as provided under Article 11 
of the Illinois Municipal Code in a municipality with a 
population between 13,000 and 16,000 that is located in a 
county with a population between 50,000 and 70,000.

    (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 or 
exchange-traded 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 or county 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 or county: 
        (1) If the municipal or county officer is appointed by 
    the governing body of the municipality or county to 
    represent the interests of the municipality or county on a 
    not-for-profit corporation's board, then the municipal or 
    county officer may actively vote on matters involving 
    either that board or the municipality or county, at any 
    time, so long as the membership on the not-for-profit board 
    is not a paid position, except that the municipal or county 
    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 or county officer is not appointed 
    to the governing body of a not-for-profit corporation by 
    the governing body of the municipality or county, then the 
    municipal or county officer may continue to serve; however, 
    the municipal or county officer shall abstain from voting 
    on any proposition before the municipal or county 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 or county 
    governing body. 
(Source: P.A. 96-277, eff. 1-1-10; 96-1058, eff. 7-14-10; 
97-520, eff. 8-23-11.)