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90_SB0270
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 member of a
governing body may have a 1% ownership interest in an entity
providing materials or services to the governing body if the
member publicly discloses the interest before or during
deliberations of the contract and abstains from voting on the
contract. Effective immediately.
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1 AN ACT concerning interests in contracts.
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 (c-5) In addition to the above exemptions, any elected
9 or appointed member of the governing body may provide
10 materials, merchandise, property, services, or labor if:
11 A. the contract is with a person, firm,
12 partnership, association, corporation, or cooperative
13 association in which the interested member of the
14 governing body of the municipality, advisory panel, or
15 commission has less than a 1% share in the ownership; and
16 B. the award of the contract is approved by a
17 majority vote of the governing body of the municipality
18 provided that any such interested member shall abstain
19 from voting; and
20 C. such interested member publicly discloses the
21 nature and extent of his interest before or during
22 deliberations concerning the proposed award of the
23 contract; and
24 D. such interested member abstains from voting on
25 the award of the contract, though he shall be considered
26 present for the purposes of establishing a quorum.
27 (d) A contract for the procurement of public utility
28 services by a public entity with a public utility company is
29 not barred by this Section by one or more members of the
30 governing body of the public entity being an officer or
31 employee of the public utility company or holding an
32 ownership interest of no more than 7 1/2% in the public
33 utility company, or holding an ownership interest of any size
34 if the public entity is a municipality with a population of
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1 less than 7,500 and the public utility's rates are approved
2 by the Illinois Commerce Commission. An elected or appointed
3 member of the governing body of the public entity having such
4 an interest shall be deemed not to have a prohibited interest
5 under this Section.
6 (e) Notwithstanding any other provision of this Section
7 or any other law to the contrary, until January 1, 1994, a
8 member of the city council of a municipality with a
9 population under 20,000 may purchase real estate from the
10 municipality, at a price of not less than 100% of the value
11 of the real estate as determined by a written MAI certified
12 appraisal or by a written certified appraisal of a State
13 certified or licensed real estate appraiser, if the purchase
14 is approved by a unanimous vote of the city council members
15 then holding office (except for the member desiring to
16 purchase the real estate, who shall not vote on the
17 question).
18 (Source: P.A. 87-855; 87-1197.)
19 Section 10. The Illinois Municipal Code is amended by
20 changing Section 3.1-55-10 as follows:
21 (65 ILCS 5/3.1-55-10)
22 Sec. 3.1-55-10. Interests in contracts.
23 (a) A municipal officer shall not be interested,
24 directly or indirectly, in the officer's own name or in the
25 name of any other person, association, trust, or corporation,
26 in any contract, work, or business of the municipality or in
27 the sale of any article whenever the expense, price, or
28 consideration of the contract, work, business, or sale is
29 paid either from the treasury or by an assessment levied by
30 statute or ordinance. A municipal officer shall not be
31 interested, directly or indirectly, in the purchase of any
32 property that (i) belongs to the municipality, (ii) is sold
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1 for taxes or assessments, or (iii) is sold by virtue of legal
2 process at the suit of the municipality.
3 (b) Any elected or appointed member of the governing
4 body and any person serving on a municipal advisory panel or
5 commission or nongoverning board or commission may, however,
6 provide materials, merchandise, property, services, or labor,
7 if:
8 (1) the contract is with a person, firm,
9 partnership, association, corporation, or cooperative
10 association in which the interested member of the
11 governing body of the municipality or advisory panel or
12 commission member has less than a 7 1/2% share in the
13 ownership;
14 (2) in the case of an elected or appointed member
15 of the governing body, the interested member publicly
16 discloses the nature and extent of the interest before or
17 during deliberations concerning the proposed award of the
18 contract;
19 (3) in the case of an elected or appointed member
20 of the governing body, the interested member abstains
21 from voting on the award of the contract (though the
22 member shall be considered present for the purposes of
23 establishing a quorum);
24 (4) the contract is approved by a majority vote of
25 those members presently holding office;
26 (5) the contract is awarded after sealed bids to
27 the lowest responsible bidder if the amount of the
28 contract exceeds $1,500 (but the contract may be awarded
29 without bidding if the amount is less than $1,500); and
30 (6) the award of the contract would not cause the
31 aggregate amount of all contracts so awarded to the same
32 person, firm, association, partnership, corporation, or
33 cooperative association in the same fiscal year to exceed
34 $25,000.
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1 (c) In addition to the exemption in subsection (b), an
2 elected or appointed member of the governing body and any
3 person serving on a municipal advisory panel or commission
4 may provide materials, merchandise, property, services, or
5 labor if:
6 (1) the award of the contract is approved by a
7 majority vote of the governing body of the municipality
8 (provided that, in the case of an elected or appointed
9 member of the governing body, the interested member shall
10 abstain from voting);
11 (2) the amount of the contract does not exceed
12 $2,000;
13 (3) the award of the contract would not cause the
14 aggregate amount of all contracts so awarded to the same
15 person, firm, association, partnership, corporation, or
16 cooperative association in the same fiscal year to exceed
17 $4,000;
18 (4) in the case of an elected or appointed member
19 of the governing body, the interested member publicly
20 discloses the nature and extent of his interest before or
21 during deliberations concerning the proposed award of the
22 contract; and
23 (5) in the case of an elected or appointed member
24 of the governing body, the interested member abstains
25 from voting on the award of the contract (though the
26 member shall be considered present for the purposes of
27 establishing a quorum).
28 (c-5) In addition to the above exemptions, any elected
29 or appointed member of the governing body may provide
30 materials, merchandise, property, services, or labor if:
31 (1) the contract is with a person, firm,
32 partnership, association, corporation, or cooperative
33 association in which the interested member of the
34 governing body of the municipality, advisory panel, or
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1 commission has less than a 1% share in the ownership; and
2 (2) the award of the contract is approved by a
3 majority vote of the governing body of the municipality
4 provided that any such interested member shall abstain
5 from voting; and
6 (3) such interested member publicly discloses the
7 nature and extent of his interest before or during
8 deliberations concerning the proposed award of the
9 contract; and
10 (4) such interested member abstains from voting on
11 the award of the contract, though he shall be considered
12 present for the purposes of establishing a quorum.
13 (d) A contract for the procurement of public utility
14 services by a municipality with a public utility company is
15 not barred by this Section by one or more members of the
16 governing body being an officer or employee of the public
17 utility company, or holding an ownership interest in no more
18 than 7 1/2% in the public utility company, or holding an
19 ownership interest of any size if the municipality has a
20 population of less than 7,500 and the public utility's rates
21 are approved by the Illinois Commerce Commission. An elected
22 or appointed member of the governing body or a nongoverning
23 board or commission having an interest described in this
24 subsection (d) does not have a prohibited interest under this
25 Section.
26 (e) An officer who violates this Section is guilty of a
27 Class 4 felony. In addition, any office held by an officer
28 so convicted shall become vacant and shall be so declared as
29 part of the judgment of the court.
30 (f) Nothing contained in this Section, including the
31 restrictions set forth in subsections (b), (c), (c-5), and
32 (d), shall preclude a contract of deposit of moneys, loans,
33 or other financial services by a municipality with a local
34 bank or local savings and loan association, regardless of
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1 whether a member of the governing body or a nongoverning
2 board or commission of the municipality is interested in the
3 bank or savings and loan association as an officer or
4 employee or as a holder of less than 7 1/2% of the total
5 ownership interest. A member holding an interest described
6 in this subsection (f) in a contract does not hold a
7 prohibited interest for purposes of this Act. The interested
8 member of the governing body or a nongoverning board or
9 commission must publicly state the nature and extent of the
10 interest during deliberations concerning the proposed award
11 of the contract but shall not participate in any further
12 deliberations concerning the proposed award. The interested
13 member shall not vote on the proposed award. A member
14 abstaining from participation in deliberations and voting
15 under this Section may be considered present for purposes of
16 establishing a quorum. Award of the contract shall require
17 approval by a majority vote of those members presently
18 holding office. Consideration and award of a contract in
19 which a member is interested may only be made at a regularly
20 scheduled public meeting of the governing body of the
21 municipality.
22 (g) Notwithstanding any other provision of this Section
23 or any other law to the contrary, until January 1, 1994, a
24 member of the city council of a municipality with a
25 population under 20,000 may purchase real estate from the
26 municipality, at a price of not less than 100% of the value
27 of the real estate as determined by a written MAI certified
28 appraisal or by a written certified appraisal of a State
29 certified or licensed real estate appraiser, if the purchase
30 is approved by a unanimous vote of the city council members
31 then holding office (except for the member desiring to
32 purchase the real estate, who shall not vote on the
33 question).
34 (Source: P.A. 87-1119; 87-1197; 88-45; 88-572, eff. 8-11-94.)
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1 Section 99. Effective date. This Act takes effect upon
2 becoming law.