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| [ Senate Amendment 002 ] |
90_SB0594
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 company if the officer
is an employee of or owns or holds an interest of 1% or less,
or both, in the officer's individual name in a company that
is involved in the transaction of business with the
municipality and that company's stock is traded on a
nationally recognized securities market. Provides that a
municipal officer is not deemed interested in a company if
the officer owns or holds an interest of 1% or less, not in
the officer's individual name but through a mutual fund, in a
company, that company is involved in the transaction of
business with the municipality, and that company's stock is
traded on a nationally recognized securities market.
Provides that any person serving on a municipal advisory
panel or commission or nongoverning board or commission is
not prohibited (now is prohibited) from having an interest in
the transaction of business with the municipality unless that
person's duties include evaluating, recommending, approving,
or voting to recommend or approve the business.
LRB9000659MWpcB
LRB9000659MWpcB
1 AN ACT concerning municipal officers, amending named
2 Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Public Officer Prohibited Activities Act
6 is amended by changing Section 3 as follows:
7 (50 ILCS 105/3) (from Ch. 102, par. 3)
8 Sec. 3. (a) No person holding any office, either by
9 election or appointment under the laws or Constitution of
10 this State, may be in any manner financially interested,
11 either directly or indirectly, in his own name or indirectly
12 in the name of any other person, association, trust or
13 corporation, in any contract or the performance of any work
14 in the making or letting of which such officer may be called
15 upon to act or vote. No such officer may represent, either as
16 agent or otherwise, any person, association, trust or
17 corporation, with respect to any application or bid for any
18 contract or work in regard to which such officer may be
19 called upon to vote. Nor may any such officer take or
20 receive, or offer to take or receive, either directly or
21 indirectly, any money or other thing of value as a gift or
22 bribe or means of influencing his vote or action in his
23 official character. Any contract made and procured in
24 violation hereof is void. This Section shall not apply to
25 any person serving on an advisory panel or 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 shall not be deemed interested if the officer is an
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1 employee of a company or owns or holds an interest of 1% or
2 less in the municipal officer's individual name in a company,
3 or both, that company is involved in the transaction of
4 business with the municipality, and that company's stock is
5 traded on a nationally recognized securities market, provided
6 the interested member: (i) publicly discloses the fact that
7 he or she is an employee or holds an interest of 1% or less
8 in a company before deliberation of the proposed award of the
9 contract; (ii) refrains from evaluating, recommending,
10 approving, deliberating, or otherwise participating in
11 negotiation, approval, or both, of the contract, work, or
12 business; (iii) abstains from voting on the award of the
13 contract though he or she shall be considered present for
14 purposes of establishing a quorum; and (iv) the contract is
15 approved by a majority vote of those members currently
16 holding office.
17 A municipal officer shall not be deemed interested if the
18 officer owns or holds an interest of 1% or less, not in the
19 officer's individual name but through a mutual fund, in a
20 company, 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.
23 (Source: P.A. 87-855; 87-1197.)
24 Section 10. The Illinois Municipal Code is amended by
25 changing Section 3.1-55-10 as follows:
26 (65 ILCS 5/3.1-55-10)
27 Sec. 3.1-55-10. Interests in contracts.
28 (a) A municipal officer shall not be financially
29 interested, directly or indirectly, in the officer's own name
30 or indirectly in the name of any other person, association,
31 trust, or corporation, in any contract, work, or business of
32 the municipality or in the sale of any article whenever the
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1 expense, price, or consideration of the contract, work,
2 business, or sale is paid either from the treasury or by an
3 assessment levied by statute or ordinance. A municipal
4 officer shall not be interested, directly or indirectly, in
5 the purchase of any property that (i) belongs to the
6 municipality, (ii) is sold for taxes or assessments, or (iii)
7 is sold by virtue of legal process at the suit of the
8 municipality. For the purposes of this Section only,
9 however, a municipal officer shall not be deemed interested
10 if the officer is an employee of a company or owns or holds
11 an interest of 1% or less in the municipal officer's
12 individual name in a company, or both, that company is
13 involved in the transaction of business with the
14 municipality, and that company's stock is traded on a
15 nationally recognized securities market, provided the
16 interested member (i) publically discloses the fact that he
17 or she is an employee or holds an interest of 1% of less in a
18 company before deliberation of the proposed award of the
19 contract; (ii) refrains from evaluating, recommending,
20 approving, deliberating, or otherwise participating in the
21 negotiation, approval, or both, of the contract, work, or
22 business; (iii) abstains from voting on the award of the
23 contract though he or she shall be considered present for
24 purposes of establishing a quorum; and (iv) the contract is
25 approved by a majority vote of those members currently
26 holding office.
27 A municipal officer shall not be deemed interested if the
28 officer owns or holds an interest of 1% or less, not in the
29 officer's individual name but through a mutual fund, in a
30 company, that company is involved in the transaction of
31 business with the municipality, and that company's stock is
32 traded on a nationally recognized securities market.
33 This Section does not prohibit any person serving on a
34 municipal advisory panel or commission or nongoverning board
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1 or commission from having an interest in a contract, work, or
2 business of the municipality unless the municipal officer's
3 duties include evaluating, recommending, approving, or voting
4 to recommend or approve the contract, work, or business.
5 (b) Any elected or appointed member of the governing
6 body and any person serving on a municipal advisory panel or
7 commission or nongoverning board or commission may, however,
8 provide materials, merchandise, property, services, or labor,
9 if:
10 (1) the contract is with a person, firm,
11 partnership, association, corporation, or cooperative
12 association in which the interested member of the
13 governing body of the municipality or advisory panel or
14 commission member has less than a 7 1/2% share in the
15 ownership;
16 (2) in the case of an elected or appointed member
17 of the governing body, the interested member publicly
18 discloses the nature and extent of the interest before or
19 during deliberations concerning the proposed award of the
20 contract;
21 (3) in the case of an elected or appointed member
22 of the governing body, the interested member abstains
23 from voting on the award of the contract (though the
24 member shall be considered present for the purposes of
25 establishing a quorum);
26 (4) the contract is approved by a majority vote of
27 those members presently holding office;
28 (5) the contract is awarded after sealed bids to
29 the lowest responsible bidder if the amount of the
30 contract exceeds $1,500 (but the contract may be awarded
31 without bidding if the amount is less than $1,500); and
32 (6) the award of the contract would not cause the
33 aggregate amount of all contracts so awarded to the same
34 person, firm, association, partnership, corporation, or
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1 cooperative association in the same fiscal year to exceed
2 $25,000.
3 (c) In addition to the exemption in subsection (b), an
4 elected or appointed member of the governing body and any
5 person serving on a municipal advisory panel or commission
6 may provide materials, merchandise, property, services, or
7 labor if:
8 (1) the award of the contract is approved by a
9 majority vote of the governing body of the municipality
10 (provided that, in the case of an elected or appointed
11 member of the governing body, the interested member shall
12 abstain from voting);
13 (2) the amount of the contract does not exceed
14 $2,000;
15 (3) the award of the contract would not cause the
16 aggregate amount of all contracts so awarded to the same
17 person, firm, association, partnership, corporation, or
18 cooperative association in the same fiscal year to exceed
19 $4,000;
20 (4) in the case of an elected or appointed member
21 of the governing body, the interested member publicly
22 discloses the nature and extent of his interest before or
23 during deliberations concerning the proposed award of the
24 contract; and
25 (5) in the case of an elected or appointed member
26 of the governing body, the interested member abstains
27 from voting on the award of the contract (though the
28 member shall be considered present for the purposes of
29 establishing a quorum).
30 (d) A contract for the procurement of public utility
31 services by a municipality with a public utility company is
32 not barred by this Section by one or more members of the
33 governing body being an officer or employee of the public
34 utility company, or holding an ownership interest in no more
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1 than 7 1/2% in the public utility company, or holding an
2 ownership interest of any size if the municipality has a
3 population of less than 7,500 and the public utility's rates
4 are approved by the Illinois Commerce Commission. An elected
5 or appointed member of the governing body or a nongoverning
6 board or commission having an interest described in this
7 subsection (d) does not have a prohibited interest under this
8 Section.
9 (e) An officer who violates this Section is guilty of a
10 Class 4 felony. In addition, any office held by an officer
11 so convicted shall become vacant and shall be so declared as
12 part of the judgment of the court.
13 (f) Nothing contained in this Section, including the
14 restrictions set forth in subsections (b), (c), and (d),
15 shall preclude a contract of deposit of moneys, loans, or
16 other financial services by a municipality with a local bank
17 or local savings and loan association, regardless of whether
18 a member of the governing body or a nongoverning board or
19 commission of the municipality is interested in the bank or
20 savings and loan association as an officer or employee or as
21 a holder of less than 7 1/2% of the total ownership interest.
22 A member holding an interest described in this subsection (f)
23 in a contract does not hold a prohibited interest for
24 purposes of this Act. The interested member of the governing
25 body or a nongoverning board or commission must publicly
26 state the nature and extent of the interest during
27 deliberations concerning the proposed award of the contract
28 but shall not participate in any further deliberations
29 concerning the proposed award. The interested member shall
30 not vote on the proposed award. A member abstaining from
31 participation in deliberations and voting under this Section
32 may be considered present for purposes of establishing a
33 quorum. Award of the contract shall require approval by a
34 majority vote of those members presently holding office.
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1 Consideration and award of a contract in which a member is
2 interested may only be made at a regularly scheduled public
3 meeting of the governing body of the municipality.
4 (g) Notwithstanding any other provision of this Section
5 or any other law to the contrary, until January 1, 1994, a
6 member of the city council of a municipality with a
7 population under 20,000 may purchase real estate from the
8 municipality, at a price of not less than 100% of the value
9 of the real estate as determined by a written MAI certified
10 appraisal or by a written certified appraisal of a State
11 certified or licensed real estate appraiser, if the purchase
12 is approved by a unanimous vote of the city council members
13 then holding office (except for the member desiring to
14 purchase the real estate, who shall not vote on the
15 question).
16 (Source: P.A. 87-1119; 87-1197; 88-45; 88-572, eff. 8-11-94.)