Public Act 90-0364 of the 90th General Assembly
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.)