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90_SB0594enr
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
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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, subject to the following provisions under
29 either (1) or (2)
30 (1) If:
31 A. the contract is with a person, firm,
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1 partnership, association, corporation, or cooperative
2 association in which such interested member of the
3 governing body of the municipality has less than a 7 1/2%
4 share in the ownership; and
5 B. such interested member publicly discloses the
6 nature and extent of his interest prior to or during
7 deliberations concerning the proposed award of the
8 contract; and
9 C. such interested member abstains from voting on
10 the award of the contract, though he shall be considered
11 present for the purposes of establishing a quorum; and
12 D. such contract is approved by a majority vote of
13 those members presently holding office; and
14 E. the contract is awarded after sealed bids to the
15 lowest responsible bidder if the amount of the contract
16 exceeds $1500, or awarded without bidding if the amount
17 of the contract is less than $1500; and
18 F. the award of the contract would not cause the
19 aggregate amount of all such contracts so awarded to the
20 same person, firm, association, partnership, corporation
21 or cooperative association in the same fiscal year to
22 exceed $25,000.
23 (c) In addition to the above exemption, any elected or
24 appointed member of the governing body may provide materials,
25 merchandise, property, services or labor if:
26 (2) If:
27 A. the award of the contract is approved by a
28 majority vote of the governing body of the municipality
29 provided that any such interested member shall abstain
30 from voting; and
31 B. the amount of the contract does not exceed
32 $2,000; and
33 C. the award of the contract would not cause the
34 aggregate amount of all such contracts so awarded to the
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1 same person, firm, association, partnership, corporation
2 or cooperative association in the same fiscal year to
3 exceed $4,000; and
4 D. such interested member publicly discloses the
5 nature and extent of his interest prior to or during
6 deliberations concerning the proposed award of the
7 contract; and
8 E. such interested member abstains from voting on
9 the award of the contract, though he shall be considered
10 present for the purposes of establishing a quorum.
11 (b-5) In addition to the above exemptions, any elected
12 or appointed member of the governing body may provide
13 materials, merchandise, property, services, or labor if:
14 A. the contract is with a person, firm,
15 partnership, association, corporation, or cooperative
16 association in which the interested member of the
17 governing body of the municipality, advisory panel, or
18 commission has less than a 1% share in the ownership; and
19 B. the award of the contract is approved by a
20 majority vote of the governing body of the municipality
21 provided that any such interested member shall abstain
22 from voting; and
23 C. such interested member publicly discloses the
24 nature and extent of his interest before or during
25 deliberations concerning the proposed award of the
26 contract; and
27 D. such interested member abstains from voting on
28 the award of the contract, though he shall be considered
29 present for the purposes of establishing a quorum.
30 (c)(d) A contract for the procurement of public utility
31 services by a public entity with a public utility company is
32 not barred by this Section by one or more members of the
33 governing body of the public entity being an officer or
34 employee of the public utility company or holding an
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1 ownership interest of no more than 7 1/2% in the public
2 utility company, or holding an ownership interest of any size
3 if the public entity is a municipality with a population of
4 less than 7,500 and the public utility's rates are approved
5 by the Illinois Commerce Commission. An elected or appointed
6 member of the governing body of the public entity having such
7 an interest shall be deemed not to have a prohibited interest
8 under this Section.
9 (d)(e) Notwithstanding any other provision of this
10 Section or any other law to the contrary, until January 1,
11 1994, a member of the city council of a municipality with a
12 population under 20,000 may purchase real estate from the
13 municipality, at a price of not less than 100% of the value
14 of the real estate as determined by a written MAI certified
15 appraisal or by a written certified appraisal of a State
16 certified or licensed real estate appraiser, if the purchase
17 is approved by a unanimous vote of the city council members
18 then holding office (except for the member desiring to
19 purchase the real estate, who shall not vote on the
20 question).
21 (e) For the purposes of this Section only, a municipal
22 officer shall not be deemed interested if the officer is an
23 employee of a company or owns or holds an interest of 1% or
24 less in the municipal officer's individual name in a company,
25 or both, that company is involved in the transaction of
26 business with the municipality, and that company's stock is
27 traded on a nationally recognized securities market, provided
28 the interested member: (i) publicly discloses the fact that
29 he or she is an employee or holds an interest of 1% or less
30 in a company before deliberation of the proposed award of the
31 contract; (ii) refrains from evaluating, recommending,
32 approving, deliberating, or otherwise participating in
33 negotiation, approval, or both, of the contract, work, or
34 business; (iii) abstains from voting on the award of the
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1 contract though he or she shall be considered present for
2 purposes of establishing a quorum; and (iv) the contract is
3 approved by a majority vote of those members currently
4 holding office.
5 A municipal officer shall not be deemed interested if the
6 officer owns or holds an interest of 1% or less, not in the
7 officer's individual name but through a mutual fund, in a
8 company, that company is involved in the transaction of
9 business with the municipality, and that company's stock is
10 traded on a nationally recognized securities market.
11 (Source: P.A. 87-855; 87-1197.)
12 Section 10. The Illinois Municipal Code is amended by
13 changing Section 3.1-55-10 as follows:
14 (65 ILCS 5/3.1-55-10)
15 Sec. 3.1-55-10. Interests in contracts.
16 (a) A municipal officer shall not be financially
17 interested, directly or indirectly, in the officer's own name
18 or indirectly in the name of any other person, association,
19 trust, or corporation, in any contract, work, or business of
20 the municipality or in the sale of any article whenever the
21 expense, price, or consideration of the contract, work,
22 business, or sale is paid either from the treasury or by an
23 assessment levied by statute or ordinance. A municipal
24 officer shall not be interested, directly or indirectly, in
25 the purchase of any property that (i) belongs to the
26 municipality, (ii) is sold for taxes or assessments, or (iii)
27 is sold by virtue of legal process at the suit of the
28 municipality. For the purposes of this Section only,
29 however, a municipal officer shall not be deemed interested
30 if the officer is an employee of a company or owns or holds
31 an interest of 1% or less in the municipal officer's
32 individual name in a company, or both, that company is
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1 involved in the transaction of business with the
2 municipality, and that company's stock is traded on a
3 nationally recognized securities market, provided the
4 interested member (i) publicly discloses the fact that he or
5 she is an employee or holds an interest of 1% of 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 the
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
14 holding 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, in a
18 company, that company is involved in the transaction of
19 business with the municipality, and that company's stock is
20 traded on a nationally recognized securities market.
21 This Section does not prohibit any person serving on a
22 municipal advisory panel or commission or nongoverning board
23 or commission from having an interest in a contract, work, or
24 business of the municipality unless the municipal officer's
25 duties include evaluating, recommending, approving, or voting
26 to recommend or approve the contract, work, or business.
27 (b) Any elected or appointed member of the governing
28 body and any person serving on a municipal advisory panel or
29 commission or nongoverning board or commission may, however,
30 provide materials, merchandise, property, services, or labor,
31 subject to the following provisions under either (1) or (2)
32 if:
33 (1) If:
34 (A)(1) the contract is with a person, firm,
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1 partnership, association, corporation, or cooperative
2 association in which the interested member of the
3 governing body of the municipality or advisory panel or
4 commission member has less than a 7 1/2% share in the
5 ownership;
6 (B)(2) in the case of an elected or appointed
7 member of the governing body, the interested member
8 publicly discloses the nature and extent of the interest
9 before or during deliberations concerning the proposed
10 award of the contract;
11 (C)(3) in the case of an elected or appointed
12 member of the governing body, the interested member
13 abstains from voting on the award of the contract (though
14 the member shall be considered present for the purposes
15 of establishing a quorum);
16 (D)(4) the contract is approved by a majority vote
17 of those members presently holding office;
18 (E)(5) the contract is awarded after sealed bids to
19 the lowest responsible bidder if the amount of the
20 contract exceeds $1,500 (but the contract may be awarded
21 without bidding if the amount is less than $1,500); and
22 (F)(6) the award of the contract would not cause
23 the aggregate amount of all contracts so awarded to the
24 same person, firm, association, partnership, corporation,
25 or cooperative association in the same fiscal year to
26 exceed $25,000.
27 (2) If:
28 (c) In addition to the exemption in subsection (b), an
29 elected or appointed member of the governing body and any
30 person serving on a municipal advisory panel or commission
31 may provide materials, merchandise, property, services, or
32 labor if:
33 (A)(1) the award of the contract is approved by a
34 majority vote of the governing body of the municipality
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1 (provided that, in the case of an elected or appointed
2 member of the governing body, the interested member shall
3 abstain from voting);
4 (B)(2) the amount of the contract does not exceed
5 $2,000;
6 (C)(3) the award of the contract would not cause
7 the aggregate amount of all contracts so awarded to the
8 same person, firm, association, partnership, corporation,
9 or cooperative association in the same fiscal year to
10 exceed $4,000;
11 (D)(4) in the case of an elected or appointed
12 member of the governing body, the interested member
13 publicly discloses the nature and extent of his interest
14 before or during deliberations concerning the proposed
15 award of the contract; and
16 (E)(5) in the case of an elected or appointed
17 member of the governing body, the interested member
18 abstains from voting on the award of the contract (though
19 the member shall be considered present for the purposes
20 of establishing a quorum).
21 (b-5) In addition to the above exemptions, any elected
22 or appointed member of the governing body may provide
23 materials, merchandise, property, services, or labor if:
24 (1) the contract is with a person, firm,
25 partnership, association, corporation, or cooperative
26 association in which the interested member of the
27 governing body of the municipality, advisory panel, or
28 commission has less than a 1% share in the ownership; and
29 (2) the award of the contract is approved by a
30 majority vote of the governing body of the municipality
31 provided that any such interested member shall abstain
32 from voting; and
33 (3) such interested member publicly discloses the
34 nature and extent of his interest before or during
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1 deliberations concerning the proposed award of the
2 contract; and
3 (4) such interested member abstains from voting on
4 the award of the contract, though he shall be considered
5 present for the purposes of establishing a quorum.
6 (c)(d) A contract for the procurement of public utility
7 services by a municipality with a public utility company is
8 not barred by this Section by one or more members of the
9 governing body being an officer or employee of the public
10 utility company, or holding an ownership interest in no more
11 than 7 1/2% in the public utility company, or holding an
12 ownership interest of any size if the municipality has a
13 population of less than 7,500 and the public utility's rates
14 are approved by the Illinois Commerce Commission. An elected
15 or appointed member of the governing body or a nongoverning
16 board or commission having an interest described in this
17 subsection (d) does not have a prohibited interest under this
18 Section.
19 (d)(e) An officer who violates this Section is guilty of
20 a Class 4 felony. In addition, any office held by an officer
21 so convicted shall become vacant and shall be so declared as
22 part of the judgment of the court.
23 (e)(f) Nothing contained in this Section, including the
24 restrictions set forth in subsections (b) and, and (c), and
25 (d), shall preclude a contract of deposit of moneys, loans,
26 or other financial services by a municipality with a local
27 bank or local savings and loan association, regardless of
28 whether a member of the governing body or a nongoverning
29 board or commission of the municipality is interested in the
30 bank or savings and loan association as an officer or
31 employee or as a holder of less than 7 1/2% of the total
32 ownership interest. A member holding an interest described
33 in this subsection (e) (f) in a contract does not hold a
34 prohibited interest for purposes of this Act. The interested
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1 member of the governing body or a nongoverning board or
2 commission must publicly state the nature and extent of the
3 interest during deliberations concerning the proposed award
4 of the contract but shall not participate in any further
5 deliberations concerning the proposed award. The interested
6 member shall not vote on the proposed award. A member
7 abstaining from participation in deliberations and voting
8 under this Section may be considered present for purposes of
9 establishing a quorum. Award of the contract shall require
10 approval by a majority vote of those members presently
11 holding office. Consideration and award of a contract in
12 which a member is interested may only be made at a regularly
13 scheduled public meeting of the governing body of the
14 municipality.
15 (f)(g) Notwithstanding any other provision of this
16 Section or any other law to the contrary, until January 1,
17 1994, a member of the city council of a municipality with a
18 population under 20,000 may purchase real estate from the
19 municipality, at a price of not less than 100% of the value
20 of the real estate as determined by a written MAI certified
21 appraisal or by a written certified appraisal of a State
22 certified or licensed real estate appraiser, if the purchase
23 is approved by a unanimous vote of the city council members
24 then holding office (except for the member desiring to
25 purchase the real estate, who shall not vote on the
26 question).
27 (Source: P.A. 87-1119; 87-1197; 88-45; 88-572, eff. 8-11-94.)