Public Act 90-0364 of the 90th General Assembly

State of Illinois
Public Acts
90th General Assembly

[ Home ] [ Public Acts ] [ ILCS ] [ Search ] [ Bottom ]


Public Act 90-0364

SB594 Enrolled                                LRB9000659MWpcB

    AN ACT  concerning  municipal  officers,  amending  named
Acts.

    Be  it  enacted  by  the People of the State of Illinois,
represented in the General Assembly:

    Section 5.  The Public Officer Prohibited Activities  Act
is amended by changing Section 3 as follows:

    (50 ILCS 105/3) (from Ch. 102, par. 3)
    Sec.  3.  (a)  No  person  holding  any office, either by
election or appointment under the  laws  or  Constitution  of
this  State,  may  be  in  any manner financially interested,
either directly or indirectly, in his own name or  indirectly
in  the  name  of  any  other  person,  association, trust or
corporation, in any contract or the performance of  any  work
in  the making or letting of which such officer may be called
upon to act or vote. No such officer may represent, either as
agent  or  otherwise,  any  person,  association,  trust   or
corporation,  with  respect to any application or bid for any
contract or work in regard  to  which  such  officer  may  be
called  upon  to  vote.  Nor  may  any  such  officer take or
receive, or offer to take  or  receive,  either  directly  or
indirectly,  any  money  or other thing of value as a gift or
bribe or means of influencing  his  vote  or  action  in  his
official   character.  Any  contract  made  and  procured  in
violation hereof is void.  This Section shall  not  apply  to
any person serving on an advisory panel or commission.
    (b)  However,  any  elected  or  appointed  member of the
governing body may provide materials, merchandise,  property,
services  or labor, subject to the following provisions under
either (1) or (2)
         (1)  If:
         A.  the   contract   is   with   a   person,   firm,
    partnership,  association,  corporation,  or  cooperative
    association  in  which  such  interested  member  of  the
    governing body of the municipality has less than a 7 1/2%
    share in the ownership; and
         B.  such interested member  publicly  discloses  the
    nature  and  extent  of  his  interest prior to or during
    deliberations  concerning  the  proposed  award  of   the
    contract; and
         C.  such  interested  member abstains from voting on
    the award of the contract, though he shall be  considered
    present for the purposes of establishing a quorum; and
         D.  such  contract is approved by a majority vote of
    those members presently holding office; and
         E.  the contract is awarded after sealed bids to the
    lowest responsible bidder if the amount of  the  contract
    exceeds  $1500,  or awarded without bidding if the amount
    of the contract is less than $1500; and
         F.  the award of the contract would  not  cause  the
    aggregate  amount of all such contracts so awarded to the
    same person, firm, association, partnership,  corporation
    or  cooperative  association  in  the same fiscal year to
    exceed $25,000.
    (c)  In addition to the above exemption, any  elected  or
appointed member of the governing body may provide materials,
merchandise, property, services or labor if:
         (2)  If:
         A.  the  award  of  the  contract  is  approved by a
    majority vote of the governing body of  the  municipality
    provided  that  any  such interested member shall abstain
    from voting; and
         B.  the amount  of  the  contract  does  not  exceed
    $2,000; and
         C.  the  award  of  the contract would not cause the
    aggregate amount of all such contracts so awarded to  the
    same  person, firm, association, partnership, corporation
    or cooperative association in the  same  fiscal  year  to
    exceed $4,000; and
         D.  such  interested  member  publicly discloses the
    nature and extent of his  interest  prior  to  or  during
    deliberations   concerning  the  proposed  award  of  the
    contract; and
         E.  such interested member abstains from  voting  on
    the  award of the contract, though he shall be considered
    present for the purposes of establishing a quorum.
    (b-5)  In addition to the above exemptions,  any  elected
or  appointed  member  of  the  governing  body  may  provide
materials, merchandise, property, services, or labor if:
         A.  the   contract   is   with   a   person,   firm,
    partnership,  association,  corporation,  or  cooperative
    association   in  which  the  interested  member  of  the
    governing body of the municipality,  advisory  panel,  or
    commission has less than a 1% share in the ownership; and
         B.  the  award  of  the  contract  is  approved by a
    majority vote of the governing body of  the  municipality
    provided  that  any  such interested member shall abstain
    from voting; and
         C.  such interested member  publicly  discloses  the
    nature  and  extent  of  his  interest  before  or during
    deliberations  concerning  the  proposed  award  of   the
    contract; and
         D.  such  interested  member abstains from voting on
    the award of the contract, though he shall be  considered
    present for the purposes of establishing a quorum.
    (c)(d)  A  contract for the procurement of public utility
services by a public entity with a public utility company  is
not  barred  by  this  Section  by one or more members of the
governing body of the  public  entity  being  an  officer  or
employee   of  the  public  utility  company  or  holding  an
ownership interest of no more  than  7  1/2%  in  the  public
utility company, or holding an ownership interest of any size
if  the  public entity is a municipality with a population of
less than 7,500 and the public utility's rates  are  approved
by the Illinois Commerce Commission.  An elected or appointed
member of the governing body of the public entity having such
an interest shall be deemed not to have a prohibited interest
under this Section.
    (d)(e)  Notwithstanding   any  other  provision  of  this
Section or any other law to the contrary,  until  January  1,
1994,  a  member of the city council of a municipality with a
population under 20,000 may purchase  real  estate  from  the
municipality,  at a price of not less than  100% of the value
of the real estate as determined by a written  MAI  certified
appraisal  or  by  a  written  certified appraisal of a State
certified or licensed real estate appraiser, if the  purchase
is  approved  by a unanimous vote of the city council members
then holding  office  (except  for  the  member  desiring  to
purchase   the  real  estate,  who  shall  not  vote  on  the
question).
    (e)  For the purposes of this Section only,  a  municipal
officer  shall  not be deemed interested if the officer is an
employee of a company or owns or holds an interest of  1%  or
less in the municipal officer's individual name in a company,
or  both,  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, provided
the  interested  member: (i) publicly discloses the fact that
he or she is an employee or holds an interest of 1%  or  less
in a company before deliberation of the proposed award of the
contract;   (ii)   refrains  from  evaluating,  recommending,
approving,  deliberating,  or  otherwise   participating   in
negotiation,  approval,  or  both,  of the contract, work, or
business; (iii) abstains from voting  on  the  award  of  the
contract  though  he  or  she shall be considered present for
purposes of establishing a quorum; and (iv) the  contract  is
approved  by  a  majority  vote  of  those  members currently
holding office.
    A municipal officer shall not be deemed interested 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.
(Source: P.A. 87-855; 87-1197.)

    Section 10.  The Illinois Municipal Code  is  amended  by
changing Section 3.1-55-10 as follows:

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

[ Top ]