Full Text of HB5812 98th General Assembly
HB5812enr 98TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning local government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Public Officer Prohibited Activities Act is | 5 | | amended by changing Section 3 as follows:
| 6 | | (50 ILCS 105/3) (from Ch. 102, par. 3)
| 7 | | Sec. 3. Prohibited interest in contracts.
| 8 | | (a) No person holding any office, either by election or
| 9 | | 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
| 23 | | hereof is void. This Section shall not apply to any person |
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| 1 | | serving on an
advisory panel or commission, 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, or | 4 | | to any person serving as both a contractual employee and as a | 5 | | member of a public hospital board as provided under Article 11 | 6 | | of the Illinois Municipal Code in a municipality with a | 7 | | population between 13,000 and 16,000 that is located in a | 8 | | county with a population between 50,000 and 70,000.
| 9 | | (b) However, any elected or appointed member of the | 10 | | governing body
may provide materials, merchandise, property, | 11 | | services, or labor, subject
to
the following provisions under | 12 | | either paragraph (1) or (2):
| 13 | | (1) If:
| 14 | | A. the contract is with a person, firm, | 15 | | partnership, association,
corporation, or cooperative | 16 | | association in which such interested member
of the | 17 | | governing body of the municipality has less than a 7 | 18 | | 1/2% share in
the ownership; and
| 19 | | B. such interested member publicly discloses the | 20 | | nature and extent
of his interest prior to or during | 21 | | deliberations concerning the proposed
award of the | 22 | | contract; and
| 23 | | C. such interested member abstains from voting on | 24 | | the award of the
contract, though he shall be | 25 | | considered present for the purposes of
establishing a | 26 | | quorum; and
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| 1 | | D. such contract is approved by a majority vote of | 2 | | those members
presently holding office; and
| 3 | | E. the contract is awarded after sealed bids to the | 4 | | lowest
responsible bidder if the amount of the contract | 5 | | exceeds $1500, or
awarded without bidding if the amount | 6 | | of the contract is less than
$1500; and
| 7 | | F. the award of the contract would not cause the | 8 | | aggregate amount of
all such contracts so awarded to | 9 | | the same person, firm, association,
partnership, | 10 | | corporation, or cooperative association in the same | 11 | | fiscal
year to exceed $25,000.
| 12 | | (2) If:
| 13 | | A. the award of the contract is approved by a | 14 | | majority vote of the
governing body of the municipality | 15 | | provided that any such interested member
shall abstain | 16 | | from voting; and
| 17 | | B. the amount of the contract does not exceed | 18 | | $2,000; and
| 19 | | C. the award of the contract would not cause the | 20 | | aggregate amount of
all such contracts so awarded to | 21 | | the same person, firm, association,
partnership, | 22 | | corporation, or cooperative association in the same | 23 | | fiscal
year to exceed $4,000; and
| 24 | | D. such interested member publicly discloses the | 25 | | nature and extent
of his interest prior to or during | 26 | | deliberations concerning the proposed
award of the |
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| 1 | | contract; and
| 2 | | E. such interested member abstains from voting on | 3 | | the award of the
contract, though he shall be | 4 | | considered present for the purposes of
establishing a | 5 | | quorum.
| 6 | | (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:
| 9 | | A. 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
| 14 | | B. 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
| 18 | | C. such interested member publicly discloses the | 19 | | nature and extent of his
interest before or during | 20 | | deliberations concerning the proposed award of the
| 21 | | contract; and
| 22 | | D. 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.
| 25 | | (c) A contract for the procurement of public utility | 26 | | services by
a
public entity with a public utility company is |
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| 1 | | not barred by this
Section by one or more members of the | 2 | | governing body of the public
entity being an officer or | 3 | | employee of the public utility company or
holding an ownership | 4 | | interest of no more than 7 1/2% in the public
utility company, | 5 | | or holding an ownership interest of any size if the public
| 6 | | entity is a municipality with 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 | | governing body of the public entity having such
an interest | 10 | | shall be deemed not to have a prohibited interest under this
| 11 | | Section.
| 12 | | (d) 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).
| 23 | | (e) For the purposes of this Section only, a municipal | 24 | | officer shall not
be deemed interested if the officer is an | 25 | | employee of a company or owns or
holds
an
interest of 1% or | 26 | | less in the municipal officer's individual name in a company,
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| 1 | | or
both, that company is involved in the
transaction of | 2 | | business
with the municipality, and that company's stock is | 3 | | traded on a nationally
recognized securities market, provided | 4 | | the interested member: (i) publicly
discloses the fact that he | 5 | | or she is an employee or holds an interest of 1% or
less in a | 6 | | company before deliberation of the proposed award of the
| 7 | | contract; (ii) refrains from evaluating, recommending, | 8 | | approving, deliberating,
or otherwise participating in | 9 | | negotiation, approval, or both, of the contract,
work, or | 10 | | business; (iii) abstains from voting on the award of the | 11 | | contract
though he or she shall be considered present for | 12 | | purposes of establishing a
quorum; and (iv) the contract is | 13 | | approved by a majority vote of those members
currently holding | 14 | | office.
| 15 | | A municipal officer shall not be deemed interested if the | 16 | | officer owns or
holds an interest of 1% or less, not in the | 17 | | officer's individual name but
through a mutual fund or | 18 | | exchange-traded fund, in a company, that company is involved in | 19 | | the
transaction
of business with the municipality, and that | 20 | | company's stock is traded on a
nationally recognized securities | 21 | | market.
| 22 | | (f) Under either of the following circumstances, a | 23 | | municipal or county officer may hold a position on the board of | 24 | | a not-for-profit corporation that is interested in a contract, | 25 | | work, or business of the municipality or county : | 26 | | (1) If the municipal or county officer is appointed by |
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| 1 | | the governing body of the municipality or county to | 2 | | represent the interests of the municipality or county on a | 3 | | not-for-profit corporation's board, then the municipal or | 4 | | county officer may actively vote on matters involving | 5 | | either that board or the municipality or county , at any | 6 | | time, so long as the membership on the not-for-profit board | 7 | | is not a paid position, except that the municipal or county | 8 | | officer may be reimbursed by the non-for-profit board for | 9 | | expenses incurred as the result of membership on the | 10 | | non-for-profit board. | 11 | | (2) If the municipal or county officer is not appointed | 12 | | to the governing body of a not-for-profit corporation by | 13 | | the governing body of the municipality or county , then the | 14 | | municipal or county officer may continue to serve; however, | 15 | | the municipal or county officer shall abstain from voting | 16 | | on any proposition before the municipal or county governing | 17 | | body directly involving the not-for-profit corporation | 18 | | and, for those matters, shall not be counted as present for | 19 | | the purposes of a quorum of the municipal or county | 20 | | governing body. | 21 | | (Source: P.A. 96-277, eff. 1-1-10; 96-1058, eff. 7-14-10; | 22 | | 97-520, eff. 8-23-11.)
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