Full Text of HB2410 96th General Assembly
HB2410enr 96TH GENERAL ASSEMBLY
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HB2410 Enrolled |
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LRB096 09519 RLJ 19676 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 | 5 |
| 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 | 10 |
| be in any
manner financially interested directly
in
his own | 11 |
| name or indirectly in
the name of any other person, | 12 |
| association, trust, or corporation, in any
contract or the | 13 |
| performance of any work in the making or letting of
which such | 14 |
| officer may be called upon to act or vote. No such officer
may | 15 |
| represent, either as agent or otherwise, any person, | 16 |
| association,
trust, or corporation, with respect to any | 17 |
| application or bid for any
contract or work in regard to which | 18 |
| such officer may be called upon to
vote. Nor may any such | 19 |
| officer take or receive, or offer to take or
receive, either | 20 |
| directly or indirectly, any money or other thing of
value as a | 21 |
| gift or bribe or means of influencing his vote or action in
his | 22 |
| official character. Any contract made and procured in violation
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| hereof is void. This Section shall not apply to any person |
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| serving on an
advisory panel or commission or to any director | 2 |
| serving on a hospital
district board as provided under | 3 |
| subsection (a-5) of Section 13 of the Hospital
District Law.
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| (b) However, any elected or appointed member of the | 5 |
| governing body
may provide materials, merchandise, property, | 6 |
| services, or labor, subject
to
the following provisions under | 7 |
| either paragraph (1) or (2):
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| (1) If:
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| A. the contract is with a person, firm, partnership, | 10 |
| association,
corporation, or cooperative association in | 11 |
| which such interested member
of the governing body of the | 12 |
| municipality has less than a 7 1/2% share in
the ownership; | 13 |
| and
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| B. such interested member publicly discloses the | 15 |
| nature and extent
of his interest prior to or during | 16 |
| deliberations concerning the proposed
award of the | 17 |
| contract; and
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| C. such interested member abstains from voting on the | 19 |
| award of the
contract, though he shall be considered | 20 |
| present for the purposes of
establishing a quorum; and
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| D. such contract is approved by a majority vote of | 22 |
| those members
presently holding office; and
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| E. the contract is awarded after sealed bids to the | 24 |
| lowest
responsible bidder if the amount of the contract | 25 |
| exceeds $1500, or
awarded without bidding if the amount of | 26 |
| the contract is less than
$1500; and
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| F. the award of the contract would not cause the | 2 |
| aggregate amount of
all such contracts so awarded to the | 3 |
| same person, firm, association,
partnership, corporation, | 4 |
| or cooperative association in the same fiscal
year to | 5 |
| exceed $25,000.
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| (2) If:
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| A. the award of the contract is approved by a majority | 8 |
| vote of the
governing body of the municipality provided | 9 |
| that any such interested member
shall abstain from voting; | 10 |
| and
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| B. the amount of the contract does not exceed $2,000; | 12 |
| and
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| C. the award of the contract would not cause the | 14 |
| aggregate amount of
all such contracts so awarded to the | 15 |
| same person, firm, association,
partnership, corporation, | 16 |
| or cooperative association in the same fiscal
year to | 17 |
| exceed $4,000; and
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| D. such interested member publicly discloses the | 19 |
| nature and extent
of his interest prior to or during | 20 |
| deliberations concerning the proposed
award of the | 21 |
| contract; and
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| E. such interested member abstains from voting on the | 23 |
| award of the
contract, though he shall be considered | 24 |
| present for the purposes of
establishing a quorum.
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| (b-5) In addition to the above exemptions, any elected or | 26 |
| appointed
member
of the governing body may provide materials, |
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| merchandise, property, services,
or labor if:
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| A. the contract is with a person, firm, partnership, | 3 |
| association,
corporation, or cooperative association in | 4 |
| which the interested member of the
governing body of the | 5 |
| municipality, advisory panel, or commission has less than
a | 6 |
| 1% share in the ownership; and
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| B. the award of the contract is approved by a majority | 8 |
| vote of the
governing body of the municipality provided | 9 |
| that any such interested member
shall abstain from voting; | 10 |
| and
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| C. such interested member publicly discloses the | 12 |
| nature and extent of his
interest before or during | 13 |
| 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 | 16 |
| award of the
contract, though he shall be considered | 17 |
| present for the purposes of
establishing a quorum.
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| (c) A contract for the procurement of public utility | 19 |
| services by
a
public entity with a public utility company is | 20 |
| not barred by this
Section by one or more members of the | 21 |
| governing body of the public
entity being an officer or | 22 |
| employee of the public utility company or
holding an ownership | 23 |
| interest of no more than 7 1/2% in the public
utility company, | 24 |
| 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 | 26 |
| and the public
utility's rates are approved by the Illinois |
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| Commerce Commission. An elected
or appointed member of the | 2 |
| governing body of the public entity having such
an interest | 3 |
| 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 | 6 |
| any
other
law to the contrary, until January 1, 1994, a member | 7 |
| of
the city council of a municipality with a population under | 8 |
| 20,000 may
purchase real estate from the municipality, at a | 9 |
| price of not less than
100% of the value of the real estate as | 10 |
| determined by a written MAI
certified appraisal or by a written | 11 |
| certified appraisal of a State
certified or licensed real | 12 |
| estate appraiser,
if the purchase is approved by a
unanimous | 13 |
| vote of the city council members then holding office (except | 14 |
| for
the member desiring to purchase the real estate, who shall | 15 |
| not vote on the
question).
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| (e) For the purposes of this Section only, a municipal | 17 |
| officer shall not
be deemed interested if the officer is an | 18 |
| employee of a company or owns or
holds
an
interest of 1% or | 19 |
| 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 | 21 |
| business
with the municipality, and that company's stock is | 22 |
| traded on a nationally
recognized securities market, provided | 23 |
| the interested member: (i) publicly
discloses the fact that he | 24 |
| or she is an employee or holds an interest of 1% or
less in a | 25 |
| company before deliberation of the proposed award of the
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| contract; (ii) refrains from evaluating, recommending, |
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LRB096 09519 RLJ 19676 b |
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| approving, deliberating,
or otherwise participating in | 2 |
| negotiation, approval, or both, of the contract,
work, or | 3 |
| business; (iii) abstains from voting on the award of the | 4 |
| contract
though he or she shall be considered present for | 5 |
| purposes of establishing a
quorum; and (iv) the contract is | 6 |
| approved by a majority vote of those members
currently holding | 7 |
| office.
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| A municipal officer shall not be deemed interested if the | 9 |
| officer owns or
holds an interest of 1% or less, not in the | 10 |
| officer's individual name but
through a mutual fund, in a | 11 |
| company, that company is involved in the
transaction
of | 12 |
| business with the municipality, and that company's stock is | 13 |
| traded on a
nationally recognized securities market.
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| (f) Under either of the following circumstances, a | 15 |
| municipal officer may hold a position on the board of a | 16 |
| not-for-profit corporation that is interested in a contract, | 17 |
| work, or business of the municipality: | 18 |
| (1) If the municipal officer is appointed by the | 19 |
| governing body of the municipality to represent the | 20 |
| interests of the municipality on a not-for-profit | 21 |
| corporation's board, then the municipal officer may | 22 |
| actively vote on matters involving either that board or the | 23 |
| municipality, at any time, so long as the membership on the | 24 |
| not-for-profit board is not a paid position, except that | 25 |
| the municipal officer may be reimbursed by the | 26 |
| non-for-profit board for expenses incurred as the result of |
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| membership on the non-for-profit board. | 2 |
| (2) If the municipal officer is not appointed to the | 3 |
| governing body of a not-for-profit corporation by the | 4 |
| governing body of the municipality, then the municipal | 5 |
| officer may continue to serve; however, the municipal | 6 |
| officer shall abstain from voting on any proposition before | 7 |
| the municipal governing body directly involving the | 8 |
| not-for-profit corporation and, for those matters, shall | 9 |
| not be counted as present for the purposes of a quorum of | 10 |
| the municipal governing body. | 11 |
| (Source: P.A. 90-197, eff. 1-1-98; 90-364, eff, 1-1-98; 90-655, | 12 |
| eff.
7-30-98.)
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| Section 10. The Illinois Municipal Code is amended by | 14 |
| changing Section 3.1-55-10 as follows:
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| (65 ILCS 5/3.1-55-10)
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| Sec. 3.1-55-10. Interests in contracts.
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| (a) A municipal officer shall not be financially interested | 18 |
| directly
in the officer's own name or indirectly in the name of | 19 |
| any other person,
association, trust, or corporation, in any | 20 |
| contract, work, or business of
the municipality or in the sale | 21 |
| of any article whenever the expense,
price, or consideration of | 22 |
| the contract, work, business, or sale is paid
either from the | 23 |
| treasury or by an assessment levied by statute or
ordinance. A | 24 |
| municipal officer shall not be interested, directly or
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| indirectly, in the purchase of any property that (i) belongs to | 2 |
| the
municipality, (ii) is sold for taxes or assessments, or | 3 |
| (iii) is sold by virtue
of legal process at the suit of the | 4 |
| municipality. For the purposes of this
Section only, however, a | 5 |
| municipal officer shall not be deemed interested if
the officer | 6 |
| is an employee of a company or owns or holds an interest of 1% | 7 |
| or
less in the municipal officer's individual name in a | 8 |
| company, or both, that
company is involved in the transaction | 9 |
| of business with the municipality, and
that company's stock is | 10 |
| traded on a nationally recognized securities market,
provided | 11 |
| the interested member (i) publicly discloses the fact that he | 12 |
| or she
is an employee or holds an interest of 1% or less in a | 13 |
| company
before deliberation of the proposed award of the | 14 |
| contract; (ii) refrains from
evaluating, recommending, | 15 |
| approving, deliberating, or otherwise participating
in the | 16 |
| negotiation, approval, or both, of the contract, work, or | 17 |
| business;
(iii) abstains from voting on the award of the | 18 |
| contract though he or she shall
be considered present for | 19 |
| purposes of establishing a quorum; and (iv) the
contract is | 20 |
| approved by a majority vote of those members currently holding
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| office.
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| A municipal officer shall not be deemed interested if the | 23 |
| officer owns or
holds an interest of 1% or less, not in the | 24 |
| officer's individual name but
through a mutual fund, in a | 25 |
| company, that company is involved in the
transaction of | 26 |
| business with the municipality, and that company's stock is
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HB2410 Enrolled |
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LRB096 09519 RLJ 19676 b |
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| traded on a nationally recognized securities market.
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| This Section does not prohibit any person serving on a | 3 |
| municipal advisory
panel or commission or nongoverning board or | 4 |
| commission from having an
interest in a contract, work, or | 5 |
| business of the municipality unless the
municipal officer's | 6 |
| duties include evaluating, recommending, approving, or
voting | 7 |
| to recommend or approve the contract, work, or business.
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| (b) Any elected or appointed member of the governing body | 9 |
| may, however,
provide materials, merchandise, property, | 10 |
| services, or labor, subject to the
following provisions under | 11 |
| either (1) or (2):
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| (1) If:
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| (A) the contract is with a person, firm, | 14 |
| partnership, association,
corporation, or cooperative | 15 |
| association in which the interested member of the
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| governing body of the municipality member has less than | 17 |
| a 7 1/2% share in the
ownership;
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| (B) the interested member publicly discloses the | 19 |
| nature and extent
of the interest before or during | 20 |
| deliberations concerning the proposed
award of the | 21 |
| contract;
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| (C) the interested member abstains from voting on | 23 |
| the award of the
contract (though the member shall be | 24 |
| considered present for the purposes of
establishing a | 25 |
| quorum);
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| (D) the contract is approved by a majority vote of |
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LRB096 09519 RLJ 19676 b |
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| those
members presently holding office;
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| (E) the contract is awarded after sealed bids to | 3 |
| the lowest
responsible bidder if the amount of the | 4 |
| contract exceeds $1,500 (but the
contract may be | 5 |
| awarded without bidding if the amount is less than
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| $1,500); and
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| (F) the award of the contract would not cause the | 8 |
| aggregate amount of
all contracts so awarded to the | 9 |
| same person, firm, association, partnership,
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| corporation, or cooperative association in the same | 11 |
| 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 | 14 |
| majority vote of the
governing body of the municipality | 15 |
| (provided that the interested member shall
abstain | 16 |
| from voting);
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| (B) the amount of the contract does not exceed | 18 |
| $2,000;
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| (C) the award of the contract would not cause the | 20 |
| aggregate amount of
all contracts so awarded to the | 21 |
| same person, firm, association, partnership,
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| corporation, or cooperative association in the same | 23 |
| fiscal year to exceed
$4,000;
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| (D) the interested member publicly discloses the | 25 |
| nature and extent
of his interest before or during | 26 |
| deliberations concerning the proposed
award of the |
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LRB096 09519 RLJ 19676 b |
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| contract; and
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| (E) the interested member abstains from voting on | 3 |
| the award of the
contract (though the member shall be | 4 |
| considered present for the purposes of
establishing a | 5 |
| quorum).
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| (b-5) In addition to the above exemptions, any elected or | 7 |
| appointed member
of the governing body may provide materials, | 8 |
| merchandise, property, services,
or labor if:
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| (1) the contract is with a person, firm, partnership, | 10 |
| association,
corporation, or cooperative association in | 11 |
| which the interested member of the
governing body of the | 12 |
| municipality, advisory panel, or commission has less than
a | 13 |
| 1% share in the ownership; and
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| (2) the award of the contract is approved by a majority | 15 |
| vote of the
governing body of the municipality provided | 16 |
| that any such interested member
shall abstain from voting; | 17 |
| and
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| (3) such interested member publicly discloses the | 19 |
| nature and extent of his
interest before or during | 20 |
| deliberations concerning the proposed award of the
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| contract; and
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| (4) such interested member abstains from voting on the | 23 |
| award of the
contract, though he shall be considered | 24 |
| present for the purposes of
establishing a quorum.
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| (c) A contract for the procurement of public utility | 26 |
| services by a
municipality with a public utility company is not |
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HB2410 Enrolled |
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LRB096 09519 RLJ 19676 b |
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| barred by this Section
by one or more members of the governing | 2 |
| body being an officer or
employee of the public utility | 3 |
| company, or holding an ownership interest
in no more than 7 | 4 |
| 1/2% in the public utility company, or holding an ownership
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| interest of any size if the municipality has a population of | 6 |
| less than
7,500 and the public utility's rates are approved by | 7 |
| the Illinois Commerce
Commission. An elected or appointed | 8 |
| member of the governing body or a
nongoverning board or | 9 |
| commission having an interest described in this
subsection (d) | 10 |
| does not have a prohibited interest under this Section.
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| (d) An officer who violates this Section is guilty of a | 12 |
| Class 4 felony.
In addition, any office held by an officer so | 13 |
| convicted shall become vacant
and shall be so declared as part | 14 |
| of the judgment of the court.
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| (e) Nothing contained in this Section, including the | 16 |
| restrictions set forth
in subsections (b) and (c), shall | 17 |
| preclude a contract of deposit of moneys,
loans, or other | 18 |
| financial services by a municipality with a local bank or local
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| savings and loan association, regardless of whether a member of | 20 |
| the governing
body of the municipality is interested in the | 21 |
| bank or savings and loan
association as an officer or employee | 22 |
| or as a holder of less than 7 1/2% of
the total ownership | 23 |
| interest. A member holding an interest described in this
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| subsection (e) in a contract does not hold a prohibited | 25 |
| interest for purposes
of this Act. The interested member of the | 26 |
| governing body must publicly state
the nature and extent of the |
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LRB096 09519 RLJ 19676 b |
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| interest during deliberations concerning the
proposed award of | 2 |
| the contract but shall not participate in any further
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| deliberations concerning the proposed award. The interested | 4 |
| member shall
not vote on the proposed award. A member | 5 |
| abstaining from participation in
deliberations and voting | 6 |
| under this Section may be considered present for
purposes of | 7 |
| establishing a quorum. Award of the contract shall require | 8 |
| approval
by a majority vote of those members presently holding | 9 |
| office. Consideration
and award of a contract in which a member | 10 |
| is interested may only be made at a
regularly scheduled public | 11 |
| meeting of the governing body of the municipality.
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| (f) Notwithstanding any other provision of this Section or | 13 |
| any other law
to the contrary, until January 1, 1994, a member | 14 |
| of the city council of a
municipality with a population under | 15 |
| 20,000 may purchase real estate from the
municipality, at a | 16 |
| price of not less than 100% of the value of the real estate
as | 17 |
| determined by a written MAI certified appraisal or by a written | 18 |
| certified
appraisal of a State certified or licensed real | 19 |
| estate appraiser, if the
purchase is approved by a unanimous | 20 |
| vote of the city council members then
holding office (except | 21 |
| for the member desiring to purchase the real estate,
who shall | 22 |
| not vote on the question).
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| (g) Under either of the following circumstances, a | 24 |
| municipal officer may hold a position on the board of a | 25 |
| not-for-profit corporation that is interested in a contract, | 26 |
| work, or business of the municipality: |
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HB2410 Enrolled |
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LRB096 09519 RLJ 19676 b |
|
| 1 |
| (1) If the municipal officer is appointed by the | 2 |
| governing body of the municipality to represent the | 3 |
| interests of the municipality on a not-for-profit | 4 |
| corporation's board, then the municipal officer may | 5 |
| actively vote on matters involving either that board or the | 6 |
| municipality, at any time, so long as the membership on the | 7 |
| not-for-profit board is not a paid position, except that | 8 |
| the municipal officer may be reimbursed by the | 9 |
| not-for-profit board for expenses incurred as the result of | 10 |
| membership on the not-for-profit board. | 11 |
| (2) If the municipal officer is not appointed to the | 12 |
| governing body of a not-for-profit corporation by the | 13 |
| governing body of the municipality, then the municipal | 14 |
| officer may continue to serve; however, the municipal | 15 |
| officer shall abstain from voting on any proposition before | 16 |
| the municipal governing body directly involving the | 17 |
| not-for-profit corporation and, for those matters, shall | 18 |
| not be counted as present for the purposes of a quorum of | 19 |
| the municipal governing body. | 20 |
| (Source: P.A. 92-651, eff. 7-11-02.)
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