Section 1400.5020  Conflicts of Interest

a)         Prohibitions

1)         The Treasurer and all employees of the Treasurer's office who receive compensation for the employment in excess of 60% of the salary of the Governor of the State of Illinois and the spouses and minor children of those persons may not have or acquire any contract, or any direct pecuniary interest in any contract, that will be wholly or partially satisfied by the payment of funds appropriated by the General Assembly of the State of Illinois.

2)         No firm, partnership, association, or corporation in which any person described in subsection (a)(1) is entitled to receive:

A)        more than 7 1/2% of the total distributable income; or

B)        an amount in excess of the salary of the Governor,

may have or acquire any contract or direct pecuniary interest in any contract that will be wholly or partially satisfied by the payment of funds appropriated by the General Assembly of the State of Illinois.

3)         No firm, partnership, association, or corporation in which any person described in subsection (a)(1) together with his or her spouse or minor children is entitled to receive:

A)        more than 15%, in the aggregate, of the total distributable income; or

B)        an amount in excess of two times the salary of the Governor,

may have or acquire any contract or direct pecuniary interest in any contract that will be wholly or partially satisfied by the payment of funds appropriated by the General Assembly of the State of Illinois.

b)         An individual has a direct pecuniary interest in a contract when the individual is owed any payment in conjunction with performance of a contract, including finders' fees and commission payments.

c)         Distributable income means the income to a company after payment of all expenses, including employee salary and bonus, and retained earnings, and which remaining amount is actually distributed to those entitled to receive a share of the income.

d)         Applicability

This Section does not apply to or affect the validity of:

1)         any bond or other security previously offered for sale, to be offered for sale or sold by or for the State of Illinois;

2)         any contract made between the State and a person described in subsection (a)(1) that was in existence before the election or employment of the person if the contract can be completed within 365 days after the person takes office; otherwise, it is voidable by the State;

3)         payments made for a public aid recipient;

4)         any contract for personal services as a teacher or school administrator between the Treasurer, or an employee of the Treasurer's office, and a school district, public community college district, or the University of Illinois, Southern Illinois University, Illinois State University, Eastern Illinois University, Northern Illinois University, Western Illinois University, Chicago State University, Governor's State University, or Northeastern Illinois University;

5)         any contract for personal services of a wholly ministerial character, including, but not limited to, services as a laborer, clerk, typist, stenographer, page, bookkeeper, receptionist, or telephone switchboard operator, made by a spouse or minor child of the Treasurer or an employee of the Treasurer's office;

6)         payments made to the Treasurer or an employee of the Treasurer's office for or on behalf of a child or family served by the Department of Children and Family Services;

7)         contracts that are competitively procured as provided in this Part between the Treasurer's office and licensed professionals.

e)         Exemptions

The Treasurer, with the approval of the Chief Procurement Officer, may exempt named individuals from the prohibitions in this Section when, in his or her judgement, the public interest in having the individual in the service of the State outweighs the public policy evidenced in this Section.  An exemption is effective only when it is filed with the Secretary of State and the Comptroller and includes a statement that includes the name of the individual, all pertinent facts that would make this Section applicable, the reason for the exemption and a declaration that the individual is exempted from this Section. Notice of each exemption must be published as provided in Section 1400.1505 and made part of the procurement file.

(Source:  Amended at 48 Ill. Reg. 2924, effective February 7, 2024)