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| Public Act 096-1058 | ||||
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AN ACT concerning local government.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Public Officer Prohibited Activities Act is | ||||
amended by changing Section 3 as follows:
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(50 ILCS 105/3) (from Ch. 102, par. 3)
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Sec. 3. Prohibited interest in contracts.
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(a) No person holding any office, either by election or
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appointment under the laws or Constitution of this State, may | ||||
be in any
manner financially interested directly
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
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hereof is void. This Section shall not apply to any person | ||||
serving on an
advisory panel or commission or to any director | ||
serving on a hospital
district board as provided under | ||
subsection (a-5) of Section 13 of the Hospital
District Law.
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(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 paragraph (1) or (2):
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(1) If:
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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
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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
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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
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D. such contract is approved by a majority vote of | ||
those members
presently holding office; and
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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
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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.
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(2) If:
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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
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B. the amount of the contract does not exceed | ||
$2,000; and
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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
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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
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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.
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(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:
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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
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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
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C. such interested member publicly discloses the | ||
nature and extent of his
interest before or during | ||
deliberations concerning the proposed award of the
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contract; and
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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.
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(c) 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
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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
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Section.
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(d) 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).
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(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,
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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
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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.
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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 or | ||
exchange-traded 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.
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(f) Under either of the following circumstances, a | ||
municipal officer may hold a position on the board of a | ||
not-for-profit corporation that is interested in a contract, | ||
work, or business of the municipality: | ||
(1) If the municipal officer is appointed by the | ||
governing body of the municipality to represent the | ||
interests of the municipality on a not-for-profit | ||
corporation's board, then the municipal officer may | ||
actively vote on matters involving either that board or the | ||
municipality, at any time, so long as the membership on the | ||
not-for-profit board is not a paid position, except that | ||
the municipal officer may be reimbursed by the | ||
non-for-profit board for expenses incurred as the result of | ||
membership on the non-for-profit board. | ||
(2) If the municipal officer is not appointed to the | ||
governing body of a not-for-profit corporation by the | ||
governing body of the municipality, then the municipal | ||
officer may continue to serve; however, the municipal | ||
officer shall abstain from voting on any proposition before | ||
the municipal governing body directly involving the | ||
not-for-profit corporation and, for those matters, shall | ||
not be counted as present for the purposes of a quorum of | ||
the municipal governing body. | ||
(Source: P.A. 96-277, eff. 1-1-10.)
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Section 10. The Illinois Municipal Code is amended by | ||
changing Section 3.1-55-10 as follows:
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(65 ILCS 5/3.1-55-10)
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Sec. 3.1-55-10. Interests in contracts.
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(a) A municipal officer shall not be financially interested | ||
directly
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
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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% 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 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
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office.
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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 or | ||
exchange-traded 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.
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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.
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(b) Any elected or appointed member of the governing body | ||
may, however,
provide materials, merchandise, property, | ||
services, or labor, subject to the
following provisions under | ||
either (1) or (2):
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(1) If:
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(A) the contract is with a person, firm, | ||
partnership, association,
corporation, or cooperative | ||
association in which the interested member of the
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governing body of the municipality member has less than | ||
a 7 1/2% share in the
ownership;
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(B) the interested member publicly discloses the | ||
nature and extent
of the interest before or during | ||
deliberations concerning the proposed
award of the | ||
contract;
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(C) 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);
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(D) the contract is approved by a majority vote of | ||
those
members presently holding office;
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(E) 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
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$1,500); and
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(F) the award of the contract would not cause the | ||
aggregate amount of
all contracts so awarded to the | ||
same person, firm, association, partnership,
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corporation, or cooperative association in the same | ||
fiscal year to exceed
$25,000.
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(2) If:
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(A) the award of the contract is approved by a | ||
majority vote of the
governing body of the municipality | ||
(provided that the interested member shall
abstain | ||
from voting);
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(B) the amount of the contract does not exceed | ||
$2,000;
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(C) the award of the contract would not cause the | ||
aggregate amount of
all contracts so awarded to the | ||
same person, firm, association, partnership,
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corporation, or cooperative association in the same | ||
fiscal year to exceed
$4,000;
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(D) the interested member publicly discloses the | ||
nature and extent
of his interest before or during | ||
deliberations concerning the proposed
award of the | ||
contract; and
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(E) 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).
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(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:
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(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
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(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
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(3) such interested member publicly discloses the | ||
nature and extent of his
interest before or during | ||
deliberations concerning the proposed award of the
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contract; and
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(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.
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(c) 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
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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.
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(d) 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.
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(e) Nothing contained in this Section, including the | ||
restrictions set forth
in subsections (b) and (c), shall | ||
preclude a contract of deposit of moneys,
loans, or other | ||
financial services by a municipality with a local bank or local
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savings and loan association, regardless of whether a member of | ||
the governing
body 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
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subsection (e) in a contract does not hold a prohibited | ||
interest for purposes
of this Act. The interested member of the | ||
governing body 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
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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.
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(f) 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).
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(g) Under either of the following circumstances, a | ||
municipal officer may hold a position on the board of a | ||
not-for-profit corporation that is interested in a contract, | ||
work, or business of the municipality: | ||
(1) If the municipal officer is appointed by the | ||
governing body of the municipality to represent the | ||
interests of the municipality on a not-for-profit | ||
corporation's board, then the municipal officer may | ||
actively vote on matters involving either that board or the | ||
municipality, at any time, so long as the membership on the | ||
not-for-profit board is not a paid position, except that | ||
the municipal officer may be reimbursed by the | ||
not-for-profit board for expenses incurred as the result of | ||
membership on the not-for-profit board. | ||
(2) If the municipal officer is not appointed to the | ||
governing body of a not-for-profit corporation by the | ||
governing body of the municipality, then the municipal | ||
officer may continue to serve; however, the municipal | ||
officer shall abstain from voting on any proposition before | ||
the municipal governing body directly involving the | ||
not-for-profit corporation and, for those matters, shall | ||
not be counted as present for the purposes of a quorum of | ||
the municipal governing body. | ||
(Source: P.A. 96-277, eff. 1-1-10.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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