Full Text of HB3378 100th General Assembly
HB3378 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 HB3378 Introduced , by Rep. Lou Lang SYNOPSIS AS INTRODUCED: |
| 105 ILCS 5/10-9 | from Ch. 122, par. 10-9 |
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Amends the School Code. In provisions concerning interest of board members in contracts, sets forth additional exemptions from the provisions if the board member maintains less than a 1% share in the ownership of the company with which the school district is attempting to contract and the board member discloses and recuses himself or herself from the deliberations. Sets forth provisions concerning when a board member shall be deemed interested.
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| | A BILL FOR |
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| 1 | | AN ACT concerning education.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The School Code is amended by changing Section | 5 | | 10-9 as follows:
| 6 | | (105 ILCS 5/10-9) (from Ch. 122, par. 10-9)
| 7 | | Sec. 10-9. Interest of board member in contracts.
| 8 | | (a) No school board member shall be interested, directly or | 9 | | indirectly,
in his own name or in the name of any other person, | 10 | | association, trust or
corporation, in any contract, work or | 11 | | business of the district or in the
sale of any article, | 12 | | whenever the expense, price or consideration of the
contract, | 13 | | work, business or sale is paid either from the treasury or by | 14 | | any
assessment levied by any statute or ordinance. A school | 15 | | board member shall not be deemed interested if the board member | 16 | | is an employee of a business that is involved in the | 17 | | transaction of business with the school district, provided that | 18 | | the board member has no financial interests other than as an | 19 | | employee. No school board member
shall be interested, directly | 20 | | or indirectly, in the purchase of any
property which (1) | 21 | | belongs to the district, or (2) is sold for taxes or
| 22 | | assessments, or (3) is sold by virtue of legal process at the | 23 | | suit of
the district.
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| 1 | | (b) However, any board member may provide materials, | 2 | | merchandise,
property, services or labor, if:
| 3 | | A. the contract is with a person, firm, partnership, | 4 | | association,
corporation or cooperative association in | 5 | | which the board member has
less than a 7 1/2% share in the | 6 | | ownership; and
| 7 | | B. such interested board member publicly discloses the | 8 | | nature and
extent of his interest prior to or during | 9 | | deliberations concerning the
proposed award of the | 10 | | contract; and
| 11 | | C. such interested board 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; and
| 14 | | D. such contract is approved by a majority vote of | 15 | | those board
members presently holding office; and
| 16 | | E. the contract is awarded after sealed bids to the | 17 | | lowest
responsible bidder if the amount of the contract | 18 | | exceeds $1500,
or
awarded without bidding if the amount of | 19 | | the contract is less than
$1500; and
| 20 | | F. the award of the contract would not cause the | 21 | | aggregate amount of
all such contracts so awarded to the | 22 | | same person, firm, association,
partnership, corporation | 23 | | or cooperative association in the same fiscal
year to | 24 | | exceed $25,000.
| 25 | | (c) In addition to the above exemption, any board member | 26 | | may provide
materials, merchandise, property, services or |
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| 1 | | labor if:
| 2 | | A. the award of the contract is approved by a majority | 3 | | vote of the
board provided that any such interested member | 4 | | shall abstain from
voting; and
| 5 | | B. the amount of the contract does not exceed $1,000; | 6 | | 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 $2,000, except with respect to a board member of a | 12 | | school
district in which the materials, merchandise, | 13 | | property, services, or labor to
be provided under the | 14 | | contract are not available from any other person, firm,
| 15 | | association, partnership, corporation, or cooperative | 16 | | association in the
district, in which event the award of | 17 | | the contract shall not cause the
aggregate amount of all | 18 | | contracts so awarded to that same person, firm,
| 19 | | association, partnership, or cooperative association in | 20 | | the same fiscal year to
exceed $5,000; and
| 21 | | D. such interested member publicly discloses the | 22 | | nature and extent
of his interest prior to or during | 23 | | deliberations concerning the proposed
award of the | 24 | | contract; and
| 25 | | E. such interested member abstains from voting on the | 26 | | award of the
contract, though he shall be considered |
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| 1 | | present for the purposes of
establishing a quorum.
| 2 | | (c-5) In addition to the exemptions in subsection (c) of | 3 | | this Section, any board member may provide materials, | 4 | | merchandise, property, services, or labor if: | 5 | | A. the contract is with a person, firm, partnership, | 6 | | association, corporation, or cooperative association in | 7 | | which the interested board member has less than a 1% share | 8 | | in the ownership; | 9 | | B. the award of the contract is approved by a majority | 10 | | vote of the board, provided that any interested board | 11 | | member shall abstain from voting; | 12 | | C. the interested board member publicly discloses the | 13 | | nature and extent of his or her interest before or during | 14 | | deliberations concerning the proposed award of the | 15 | | contract; and | 16 | | D. the interested board member abstains from voting on | 17 | | the award of the contract, though he or she shall be | 18 | | considered present for purposes of establishing a quorum. | 19 | | (d) In addition to exemptions otherwise authorized by this | 20 | | Section, any
board member may purchase for use as the board | 21 | | member's primary place of
residence a house constructed by the | 22 | | district's vocational education
students on the same basis that | 23 | | any other person would be entitled to
purchase the property. | 24 | | The sale of the house by the district must comply
with the | 25 | | requirements set forth in Section 5-22 of The School Code.
| 26 | | (e) A contract for the procurement of public utility |
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| 1 | | services by a
district with a public utility company is not | 2 | | barred by this Section by
one or more members of the board | 3 | | being an officer or employee of the
public utility company or | 4 | | holding an ownership interest of no more than
7 1/2% in the | 5 | | public utility company, or holding an ownership interest of
any | 6 | | size if the school district has a population of less than 7,500 | 7 | | and
the public utility's rates are approved by the Illinois | 8 | | Commerce
Commission. An elected or appointed member of the | 9 | | board having such an
interest shall be deemed not to have a | 10 | | prohibited interest under this Section.
| 11 | | (e-5) For the purposes of this Section, a board member | 12 | | shall not be deemed interested if he or she is an employee of a | 13 | | company or owns or holds an interest of 1% or less in the board | 14 | | member's individual name in a company, or both; that company is | 15 | | involved in the transaction of business with the district; and | 16 | | that company's stock is traded on a nationally-recognized | 17 | | securities market, provided that the interested member: (i) | 18 | | publicly discloses the fact that he or she is an employee or | 19 | | holds an interest of 1% or less in the company, as applicable, | 20 | | before deliberation of the proposed award of the contract; (ii) | 21 | | refrains from evaluating, recommending, approving, | 22 | | deliberating, or otherwise participating in negotiation, | 23 | | approval, or both, of the contract, work, or business; (iii) | 24 | | abstains from voting on the award of the contract, provided | 25 | | that he or she shall be considered present for purposes of | 26 | | establishing a quorum; and (iv) the contract is approved by a |
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| 1 | | majority vote of those members currently holding office. | 2 | | A board member shall not be deemed interested if the board | 3 | | member owns or holds an interest of 1% or less, not in the | 4 | | board member's individual name but through a mutual fund or | 5 | | exchange-traded fund, in a company; that company is involved in | 6 | | the transaction of business with the school district; and that | 7 | | company's stock is traded on a nationally-recognized | 8 | | securities market. | 9 | | (f) Nothing contained in this Section, including the | 10 | | restrictions set
forth in subsections (b), (c), (c-5), (d) , and | 11 | | (e), and (e-5) shall preclude a contract of
deposit of monies, | 12 | | loans or other financial services by a school
district with a | 13 | | local bank or local savings and loan association,
regardless of | 14 | | whether a member or members of the governing body of the
school | 15 | | district are interested in such bank or savings and loan
| 16 | | association as an officer or employee or as a holder of less | 17 | | than 7 1/2%
of the total ownership interest. A member or | 18 | | members holding such an
interest in such a contract shall not | 19 | | be deemed to be holding a
prohibited interest for purposes of | 20 | | this Act. Such interested member or
members of the governing | 21 | | body must publicly state the nature and extent
of their | 22 | | interest during deliberations concerning the proposed award of
| 23 | | such a contract, but shall not participate in any further | 24 | | deliberations
concerning the proposed award. Such interested | 25 | | member or members shall
not vote on such a proposed award. Any | 26 | | member or members abstaining
from participation in |
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| 1 | | deliberations and voting under this Section may be
considered | 2 | | present for purposes of establishing a quorum. Award of such
a | 3 | | contract shall require approval by a majority vote of those | 4 | | members
presently holding office. Consideration and award of | 5 | | any such contract
in which a member or members are interested | 6 | | may only be made at a
regularly scheduled public meeting of the | 7 | | governing body of the school
district.
| 8 | | (g) Any school board member who violates this Section is | 9 | | guilty of a
Class 4 felony and in addition thereto any office | 10 | | held by such person so
convicted shall become vacant and shall | 11 | | be so declared as part of the
judgment of the court.
| 12 | | (h) Any ownership interest of a school board member in a | 13 | | firm, partnership, association, or corporation involved in the | 14 | | transaction of business with the board member's school district | 15 | | prior to the effective date of this amendatory Act of the 100th | 16 | | General Assembly, which ownership interest and transaction or | 17 | | transactions would have complied with the provisions of this | 18 | | Section as amended to include subsections (c-5) and (e-5), | 19 | | shall not constitute a violation of this Section. | 20 | | (Source: P.A. 96-998, eff. 7-2-10.)
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