Public Act 096-1058
 
SB3313 EnrolledLRB096 19415 RLJ 34807 b


  
    AN ACT concerning local government.
  
 
    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. Prohibited interest in contracts. 

    (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 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

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.

    (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):


        (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.


        (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) 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) 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 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.

    (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.)

 
    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
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% 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

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 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.

    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 
may, however,
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 the interested member of the

        governing body of the municipality member has less than 
        a 7 1/2% share in the
ownership;


            (B) the interested member publicly discloses the 
        nature and extent
of the interest before or during 
        deliberations concerning the proposed
award of the 
        contract;


            (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);


            (D) the contract is approved by a majority vote of 
        those
members presently holding office;


            (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

        $1,500); and


            (F) 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:


            (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);


            (B) the amount of the contract does not exceed 
        $2,000;


            (C) 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) 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) 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) 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) 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) 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

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

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

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) 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).

    (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.)

 
 
    Section 99. Effective date. This Act takes effect upon 
becoming law.