State of Illinois
90th General Assembly
Legislation

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[ Introduced ][ Enrolled ][ Senate Amendment 001 ]
[ Senate Amendment 002 ]

90_SB0594eng

      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
SB594 Engrossed                               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, 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
SB594 Engrossed             -6-               LRB9000659MWpcB
 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,
SB594 Engrossed             -7-               LRB9000659MWpcB
 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.)

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