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Public Act 103-0025 |
HB2079 Enrolled | LRB103 04677 AWJ 49685 b |
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AN ACT concerning local government.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Public Officer Prohibited Activities Act is |
amended by changing Section 3 as follows:
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(50 ILCS 105/3) (from Ch. 102, par. 3)
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Sec. 3. Prohibited interest in contracts.
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(a) No person holding any office, either by election or
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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 |
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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.
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(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):
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(1) If:
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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
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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
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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
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D. such contract is approved by a majority vote of |
those members
presently holding office; and
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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
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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.
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(2) If:
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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
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shall abstain from voting; and
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B. the amount of the contract does not exceed |
$2,000; and
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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
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D. such interested member publicly discloses the |
nature and extent
of his interest prior to or during |
deliberations concerning the proposed
award of the |
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contract; and
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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.
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(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:
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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
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a 1% share in the ownership; and
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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
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C. such interested member publicly discloses the |
nature and extent of his
interest before or during |
deliberations concerning the proposed award of the
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contract; and
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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.
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(c) A contract for the procurement of public utility |
services by
a
public entity with a public utility company is |
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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
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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
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Section.
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(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
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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).
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(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,
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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
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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.
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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.
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(f) Under either of the following circumstances, a |
municipal , or county , or township 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 , or township : |
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(1) If the municipal , or county , or township officer |
is appointed by the governing body of the municipality , or |
county , or township to represent the interests of the |
municipality , or county , or township on a not-for-profit |
corporation's board, then the municipal , or county , or |
township officer may actively vote on matters involving |
either that board or the municipality , or county , or |
township , 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 , or township 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 , or county , or township officer |
is not appointed to the governing body of a not-for-profit |
corporation by the governing body of the municipality , or |
county , or township , then the municipal , or county , or |
township officer may continue to serve; however, the |
municipal , or county , or township officer shall abstain |
from voting on any proposition before the municipal , or |
county , or township 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 , or township governing body. |
(Source: P.A. 100-201, eff. 8-18-17.)
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