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90_SB0070
50 ILCS 105/3 from Ch. 102, par. 3
65 ILCS 5/3.1-55-10
Amends the Public Officer Prohibited Activities Act and
the Illinois Municipal Code. Provides that a municipal
officer is not deemed interested in a transaction with a
company if the officer is an employee of or owns 1% interest
or less in the company, or both, and the company's stock is
traded on a nationally recognized securities market. Amends
the Illinois Municipal Code to provide that the prohibition
against an interest in a municipal contract, work, or
business does not apply to a person serving on a municipal
advisory panel or commission or a nongoverning board or
commission if the person's duties do not include evaluating,
recommending, or approving the transaction. Effective
immediately.
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1 AN ACT concerning municipal officers.
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
5 is amended by changing Section 3 as follows:
6 (50 ILCS 105/3) (from Ch. 102, par. 3)
7 Sec. 3. Interests 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 interested, either directly or indirectly,
11 in his own name or 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
14 such officer may be called upon to act or vote. No such
15 officer may represent, either as agent or otherwise, any
16 person, association, trust or corporation, with respect to
17 any application or bid for any contract or work in regard to
18 which such officer may be called upon to vote. Nor may any
19 such officer take or receive, or offer to take or receive,
20 either directly or indirectly, any money or other thing of
21 value as a gift or bribe or means of influencing his vote or
22 action in his official character. Any contract made and
23 procured in violation hereof is void. This Section shall not
24 apply to any person serving on an advisory panel or
25 commission.
26 (b) However, any elected or appointed member of the
27 governing body may provide materials, merchandise, property,
28 services or labor, if:
29 A. the contract is with a person, firm,
30 partnership, association, corporation, or cooperative
31 association in which such interested member of the
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1 governing body of the municipality has less than a 7 1/2%
2 share in the ownership; and
3 B. such interested member publicly discloses the
4 nature and extent of his interest prior to or during
5 deliberations concerning the proposed award of the
6 contract; and
7 C. such interested member abstains from voting on
8 the award of the contract, though he shall be considered
9 present for the purposes of establishing a quorum; and
10 D. such contract is approved by a majority vote of
11 those members presently holding office; and
12 E. the contract is awarded after sealed bids to the
13 lowest responsible bidder if the amount of the contract
14 exceeds $1500, or awarded without bidding if the amount
15 of the contract is less than $1500; and
16 F. the award of the contract would not cause the
17 aggregate amount of all such contracts so awarded to the
18 same person, firm, association, partnership, corporation
19 or cooperative association in the same fiscal year to
20 exceed $25,000.
21 (c) In addition to the above exemption, any elected or
22 appointed member of the governing body may provide materials,
23 merchandise, property, services or labor if:
24 A. the award of the contract is approved by a
25 majority vote of the governing body of the municipality
26 provided that any such interested member shall abstain
27 from voting; and
28 B. the amount of the contract does not exceed
29 $2,000; and
30 C. the award of the contract would not cause the
31 aggregate amount of all such contracts so awarded to the
32 same person, firm, association, partnership, corporation
33 or cooperative association in the same fiscal year to
34 exceed $4,000; and
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1 D. such interested member publicly discloses the
2 nature and extent of his interest prior to or during
3 deliberations concerning the proposed award of the
4 contract; and
5 E. such interested member abstains from voting on
6 the award of the contract, though he shall be considered
7 present for the purposes of establishing a quorum.
8 (d) A contract for the procurement of public utility
9 services by a public entity with a public utility company is
10 not barred by this Section by one or more members of the
11 governing body of the public entity being an officer or
12 employee of the public utility company or holding an
13 ownership interest of no more than 7 1/2% in the public
14 utility company, or holding an ownership interest of any size
15 if the public entity is a municipality with a population of
16 less than 7,500 and the public utility's rates are approved
17 by the Illinois Commerce Commission. An elected or appointed
18 member of the governing body of the public entity having such
19 an interest shall be deemed not to have a prohibited interest
20 under this Section.
21 (e) Notwithstanding any other provision of this Section
22 or any other law to the contrary, until January 1, 1994, a
23 member of the city council of a municipality with a
24 population under 20,000 may purchase real estate from the
25 municipality, at a price of not less than 100% of the value
26 of the real estate as determined by a written MAI certified
27 appraisal or by a written certified appraisal of a State
28 certified or licensed real estate appraiser, if the purchase
29 is approved by a unanimous vote of the city council members
30 then holding office (except for the member desiring to
31 purchase the real estate, who shall not vote on the
32 question).
33 (f) For the purposes of this Section only, a municipal
34 officer is not deemed interested in a company that transacts
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1 business with the municipality if the officer is an employee
2 of the company, owns or holds an interest of 1% or less in
3 the company, or both, and the company's stock is traded on a
4 nationally recognized securities market.
5 (Source: P.A. 87-855; 87-1197.)
6 Section 10. The Illinois Municipal Code is amended by
7 changing Section 3.1-55-10 as follows:
8 (65 ILCS 5/3.1-55-10)
9 Sec. 3.1-55-10. Interests in contracts.
10 (a) A municipal officer shall not be interested,
11 directly or indirectly, in the officer's own name or in the
12 name of any other person, association, trust, or corporation,
13 in any contract, work, or business of the municipality or in
14 the sale of any article whenever the expense, price, or
15 consideration of the contract, work, business, or sale is
16 paid either from the treasury or by an assessment levied by
17 statute or ordinance. A municipal officer shall not be
18 interested, directly or indirectly, in the purchase of any
19 property that (i) belongs to the municipality, (ii) is sold
20 for taxes or assessments, or (iii) is sold by virtue of legal
21 process at the suit of the municipality. For the purposes of
22 this Section only, however, a municipal officer is not deemed
23 interested in a company that transacts business with the
24 municipality if the officer is an employee of the company,
25 owns or holds an interest of 1% or less in the company, or
26 both, and the company's stock is traded on a nationally
27 recognized securities market. This Section does not prohibit
28 any person serving on a municipal advisory panel or
29 commission or a nongoverning board or commission from having
30 an interest in a contract, work, or business of the
31 municipality unless the municipal officer's duties include
32 evaluating, recommending, approving, or voting to recommend
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1 or approve the contract, work, or business.
2 (b) Any elected or appointed member of the governing
3 body and any person serving on a municipal advisory panel or
4 commission or nongoverning board or commission may, however,
5 provide materials, merchandise, property, services, or labor,
6 if:
7 (1) the contract is with a person, firm,
8 partnership, association, corporation, or cooperative
9 association in which the interested member of the
10 governing body of the municipality or advisory panel or
11 commission member has less than a 7 1/2% share in the
12 ownership;
13 (2) in the case of an elected or appointed member
14 of the governing body, the interested member publicly
15 discloses the nature and extent of the interest before or
16 during deliberations concerning the proposed award of the
17 contract;
18 (3) in the case of an elected or appointed member
19 of the governing body, the interested member abstains
20 from voting on the award of the contract (though the
21 member shall be considered present for the purposes of
22 establishing a quorum);
23 (4) the contract is approved by a majority vote of
24 those members presently holding office;
25 (5) the contract is awarded after sealed bids to
26 the lowest responsible bidder if the amount of the
27 contract exceeds $1,500 (but the contract may be awarded
28 without bidding if the amount is less than $1,500); and
29 (6) the award of the contract would not cause the
30 aggregate amount of all contracts so awarded to the same
31 person, firm, association, partnership, corporation, or
32 cooperative association in the same fiscal year to exceed
33 $25,000.
34 (c) In addition to the exemption in subsection (b), an
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1 elected or appointed member of the governing body and any
2 person serving on a municipal advisory panel or commission
3 may provide materials, merchandise, property, services, or
4 labor if:
5 (1) the award of the contract is approved by a
6 majority vote of the governing body of the municipality
7 (provided that, in the case of an elected or appointed
8 member of the governing body, the interested member shall
9 abstain from voting);
10 (2) the amount of the contract does not exceed
11 $2,000;
12 (3) the award of the contract would not cause the
13 aggregate amount of all contracts so awarded to the same
14 person, firm, association, partnership, corporation, or
15 cooperative association in the same fiscal year to exceed
16 $4,000;
17 (4) in the case of an elected or appointed member
18 of the governing body, the interested member publicly
19 discloses the nature and extent of his interest before or
20 during deliberations concerning the proposed award of the
21 contract; and
22 (5) in the case of an elected or appointed member
23 of the governing body, the interested member abstains
24 from voting on the award of the contract (though the
25 member shall be considered present for the purposes of
26 establishing a quorum).
27 (d) A contract for the procurement of public utility
28 services by a municipality with a public utility company is
29 not barred by this Section by one or more members of the
30 governing body being an officer or employee of the public
31 utility company, or holding an ownership interest in no more
32 than 7 1/2% in the public utility company, or holding an
33 ownership interest of any size if the municipality has a
34 population of less than 7,500 and the public utility's rates
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1 are approved by the Illinois Commerce Commission. An elected
2 or appointed member of the governing body or a nongoverning
3 board or commission having an interest described in this
4 subsection (d) does not have a prohibited interest under this
5 Section.
6 (e) An officer who violates this Section is guilty of a
7 Class 4 felony. In addition, any office held by an officer
8 so convicted shall become vacant and shall be so declared as
9 part of the judgment of the court.
10 (f) Nothing contained in this Section, including the
11 restrictions set forth in subsections (b), (c), and (d),
12 shall preclude a contract of deposit of moneys, loans, or
13 other financial services by a municipality with a local bank
14 or local savings and loan association, regardless of whether
15 a member of the governing body or a nongoverning board or
16 commission of the municipality is interested in the bank or
17 savings and loan association as an officer or employee or as
18 a holder of less than 7 1/2% of the total ownership interest.
19 A member holding an interest described in this subsection (f)
20 in a contract does not hold a prohibited interest for
21 purposes of this Act. The interested member of the governing
22 body or a nongoverning board or commission must publicly
23 state the nature and extent of the interest during
24 deliberations concerning the proposed award of the contract
25 but shall not participate in any further deliberations
26 concerning the proposed award. The interested member shall
27 not vote on the proposed award. A member abstaining from
28 participation in deliberations and voting under this Section
29 may be considered present for purposes of establishing a
30 quorum. Award of the contract shall require approval by a
31 majority vote of those members presently holding office.
32 Consideration and award of a contract in which a member is
33 interested may only be made at a regularly scheduled public
34 meeting of the governing body of the municipality.
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1 (g) Notwithstanding any other provision of this Section
2 or any other law to the contrary, until January 1, 1994, a
3 member of the city council of a municipality with a
4 population under 20,000 may purchase real estate from the
5 municipality, at a price of not less than 100% of the value
6 of the real estate as determined by a written MAI certified
7 appraisal or by a written certified appraisal of a State
8 certified or licensed real estate appraiser, if the purchase
9 is approved by a unanimous vote of the city council members
10 then holding office (except for the member desiring to
11 purchase the real estate, who shall not vote on the
12 question).
13 (Source: P.A. 87-1119; 87-1197; 88-45; 88-572, eff. 8-11-94.)
14 Section 99. Effective date. This Act takes effect upon
15 becoming law.