Bill Text: IL HB5669 | 2011-2012 | 97th General Assembly | Introduced


Bill Title: Creates the Local Government Bankruptcy Neutral Evaluation Act. Makes legislative findings. Defines terms. Authorizes a local public entity to initiate a neutral evaluation process if that entity is or likely will become unable to meet its financial obligations as and when those obligations are due or become due and owing. Sets forth procedures concerning the selection and qualifications of an evaluator, the evaluation process, cessation of an evaluation, declaration of a fiscal emergency, and liabilities. Further provides that any meetings or writings made in connection with the neutral evaluation process shall be prohibited from public viewing. Amends the Open Meetings Act. Provides that a public body may hold closed meetings when the meetings are made pursuant to the Local Government Bankruptcy Neutral Evaluation Act. Amends the Freedom of Information Act. Provides that all records and information prohibited from being disclosed pursuant to the Local Government Bankruptcy Neutral Evaluation Act are exempt from inspection and copying.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2013-01-08 - Session Sine Die [HB5669 Detail]

Download: Illinois-2011-HB5669-Introduced.html


97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB5669

Introduced , by Rep. John E. Bradley

SYNOPSIS AS INTRODUCED:
New Act
5 ILCS 120/2 from Ch. 102, par. 42
5 ILCS 140/7.5

Creates the Local Government Bankruptcy Neutral Evaluation Act. Makes legislative findings. Defines terms. Authorizes a local public entity to initiate a neutral evaluation process if that entity is or likely will become unable to meet its financial obligations as and when those obligations are due or become due and owing. Sets forth procedures concerning the selection and qualifications of an evaluator, the evaluation process, cessation of an evaluation, declaration of a fiscal emergency, and liabilities. Further provides that any meetings or writings made in connection with the neutral evaluation process shall be prohibited from public viewing. Amends the Open Meetings Act. Provides that a public body may hold closed meetings when the meetings are made pursuant to the Local Government Bankruptcy Neutral Evaluation Act. Amends the Freedom of Information Act. Provides that all records and information prohibited from being disclosed pursuant to the Local Government Bankruptcy Neutral Evaluation Act are exempt from inspection and copying.
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A BILL FOR

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1 AN ACT concerning local government.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the Local
5Government Bankruptcy Neutral Evaluation Act.
6 Section 3. Findings. Filing for Chapter 9 can reduce
7service levels to the taxpayers and residents of a local public
8entity. In some circumstances, it can have major short-and
9long-term fiscal consequences for the entity, the surrounding
10entities, and the State. Filing for bankruptcy protection under
11Chapter 9 should be considered a last resort, to be instituted
12only after other reasonable efforts have been made to avoid a
13bankruptcy filing or otherwise appropriately plan for it. It is
14in the interest of the State, units of local government, and
15the public that local governmental entities have sufficiently
16sound financial capacity to provide required services to the
17public and meet their contractual and other obligations during
18any restructuring or financial reorganization process.
19Furthermore, it is in the best interest of the public, the
20State, and local governmental entities that employees, trade
21creditors, bondholders, and other interest-holders be included
22in an appropriate restructuring process and have an adequate
23understanding of the financial capacity of local governmental

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1entities and their obligations, as a clear understanding of
2both is necessary for any restructuring or reorganization
3process.
4 To the extent financial relief granted through Chapter 9
5can affect debt service payments, the bondholders have a direct
6interest in the Chapter 9 process, particularly prior to
7filing. Therefore, it is important for those parties to be able
8to participate in a prefiling confidential neutral evaluation
9process that could assist parties in reaching a settlement and
10avoiding a bankruptcy filing or otherwise lead to a
11pre-negotiated consensual plan of readjustment as clearly
12contemplated by subsection (c) of Section 109 of Title 11 of
13the United States Code.
14 To the extent financial relief granted through Chapter 9
15could affect public employee compensation, employees have a
16direct interest in the Chapter 9 process, particularly prior to
17filing. Therefore, it is important for those parties to be able
18to participate in a prefiling confidential neutral evaluation
19process that could assist parties in reaching a settlement or
20otherwise lead to a pre-negotiated, consensual plan of
21adjustment and avoid a Chapter 9 filing.
22 Given the connection between State allocations and local
23budgets, the State has a role in assisting local public
24entities to address potential insolvency with the goal of
25averting bankruptcy filings where possible and providing a
26process designed to make the debt restructuring process in or

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1outside of a Chapter 9 bankruptcy as cost effective and
2efficient as possible for all participants.
3 Illinois taxpayers who rely on public safety, senior,
4recreational, health, library, and other public services, as
5well as those who own and operate businesses in our
6communities, deserve every reasonable and appropriate effort
7that State and local government can make to avoid adverse
8consequences of Chapter 9 bankruptcy filings, particularly
9where a neutral evaluation may lead to the avoidance of Chapter
109 filing by an out-of-court resolution of outstanding
11obligations and disputes.
12 Resolving local and State business and financial issues in
13a timely, fair, and cost-effective manner is an integral part
14of a successful government and is in the public interest. It
15has long been recognized that alternative dispute resolution
16proceedings, like a neutral evaluation, offer an economical,
17discreet, and expeditious way to resolve potentially
18devastating situations.
19 Through the neutral evaluation process, the neutral
20evaluator, a specially trained, neutral third party, can assist
21the local public entity and its creditors and stakeholders to
22fully explore alternatives, while allowing the interested
23parties to exchange information in a confidential environment
24with the assistance and supervision of a neutral evaluator to
25determine whether the entity's contractual and financial
26obligations can be renegotiated on a consensual basis.

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1 Section 5. Eligibility. A local public entity in this State
2may file a petition and exercise powers pursuant to applicable
3federal bankruptcy law if either of the following apply: (i)
4the local public entity has participated in a neutral
5evaluation process pursuant to Section 15 of this Act, or (ii)
6the local public entity declares a fiscal emergency and adopts
7a resolution by a majority vote of the governing board pursuant
8to Section 20 of this Act.
9 Section 10. Definitions. As used in this Act the following
10terms mean:
11 "Chapter 9" means Chapter 9 of Title 11 of the United
12States Code.
13 "Creditor" means either of the following:
14 An entity that has a noncontingent claim against a
15 municipality that arose at the time of or before the
16 commencement of the neutral evaluation process and whose
17 claim represents at least $5,000,000 or comprises more than
18 5% of the local public entity's debt or obligations,
19 whichever is less.
20 An entity that would have a noncontingent claim against
21 the municipality upon the rejection of an executory
22 contract or unexpired lease in a Chapter 9 case and whose
23 claim would represent at least $5,000,000 or comprises more
24 than 5% of the local public entity's debt or obligations,

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1 whichever is less.
2 "Debtor" means a local public entity that may file for
3bankruptcy under Chapter 9.
4 "Good faith" means participation by a party in the neutral
5evaluation process with the intent to negotiate toward a
6resolution of the issues that are the subject of the neutral
7evaluation process, including the timely provision of complete
8and accurate information to provide the relevant parties
9through the neutral evaluation process with sufficient
10information, in a confidential manner, to negotiate the
11readjustment of the local public entity's debt.
12 "Interested party" means a trustee, a committee of
13creditors, an affected creditor, an indenture trustee, a
14pension fund, a bondholder, a union that, under its collective
15bargaining agreements, has standing to initiate contract or
16debt restructuring negotiations with the local public entity,
17or a representative selected by an association of retired
18employees of the public entity who receive income from the
19public entity convening the neutral evaluation. A local public
20entity may invite holders of contingent claims to participate
21as interested parties in the neutral evaluation if the local
22public entity determines that the contingency is likely to
23occur and the claim may represent $5,000,000 or comprise more
24than 5% of the local public entity's debt or obligations,
25whichever is less.
26 "Local public entity" means any county, municipality,

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1township, special district, public authority, public agency,
2or other entity that is a political subdivision or public
3agency or instrumentality of the State, or that qualifies as a
4debtor under any other federal bankruptcy law applicable to
5local public entities. For purposes of this Act, "local public
6entity" does not include a school district.
7 "Local public entity representative" means the person or
8persons designated by the local public agency with authority to
9make recommendations and to attend the neutral evaluation on
10behalf of the governing body of the local public agency.
11 "Neutral evaluation" is a form of alternative dispute
12resolution that may be known as mandatory mediation. A "neutral
13evaluator" may also be known as a mediator.
14 Section 15. Neutral evaluation process.
15 (a) A local public entity may initiate the neutral
16evaluation process if the local public entity is or likely will
17become unable to meet its financial obligations as and when
18those obligations are due or become due and owing. The local
19public entity shall initiate the neutral evaluation by
20providing notice by certified mail of a request for neutral
21evaluation to all interested parties, as defined in Section 10
22of this Act.
23 (b) Interested parties shall respond within 10 business
24days after receipt of notice of the local public entity's
25request for neutral evaluation.

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1 (c) The local public entity and the interested parties
2agreeing to participate in the neutral evaluation shall,
3through a mutually agreed upon process, select the neutral
4evaluator to oversee the neutral evaluation process and
5facilitate all discussions in an effort to resolve their
6disputes.
7 If the local public entity and interested parties fail to
8agree on a neutral evaluator within 7 days after the interested
9parties have responded to the notification sent by the public
10entity, the public entity shall select 5 qualified neutral
11evaluators and provide their names, references, and
12backgrounds to the participating interested parties. Within 3
13business days, a majority of participating interested parties
14may strike up to 4 names from the list. If a majority of
15participating interested parties strikes 4 names, the
16remaining candidate shall be the neutral evaluator. If the
17majority of participating parties strikes fewer than 4 names,
18the local public entity may choose which of the remaining
19candidates shall be the neutral evaluator.
20 (d) A neutral evaluator shall have experience and training
21in conflict resolution and alternative dispute resolution and
22shall meet at least one of the following qualifications:
23 (1) at least 10 years of high-level business or legal
24 practice involving bankruptcy or service as a United States
25 Bankruptcy Judge; or
26 (2) professional experience or training in local

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1 government finance and one or more of the following areas:
2 local government organization, local government debt
3 restructuring, local government finances dispute
4 resolution, Chapter 9 bankruptcy, public finance,
5 taxation, Illinois Constitutional law, Illinois labor law,
6 or federal labor law.
7 (e) The neutral evaluator shall be impartial, objective,
8independent, and free from prejudice. The neutral evaluator
9shall not act with partiality or prejudice based on any
10participant's personal characteristics, background, values or
11beliefs, or performance during the neutral evaluation process.
12 (f) The neutral evaluator shall avoid a conflict of
13interest or the appearance of a conflict of interest during the
14neutral evaluation process. The neutral evaluator shall make a
15reasonable inquiry to determine whether there are any facts
16that a reasonable individual would consider likely to create a
17potential or actual conflict of interest. Notwithstanding
18subsection (n) of this Section, if the neutral evaluator is
19informed of the existence of any facts that a reasonable
20individual would consider likely to create a potential or
21actual conflict of interest, the neutral evaluator shall
22disclose these facts in writing to the local public entity and
23all interested parties involved in the neutral evaluation. If
24any party to the neutral evaluation objects to the neutral
25evaluator, that party shall notify all other parties to the
26neutral evaluation, including the neutral evaluator, within 15

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1days after receipt of the notice from the neutral evaluator,
2and the neutral evaluator shall withdraw and a new neutral
3evaluator shall be selected pursuant to subsections (a) and (b)
4of this Section.
5 (g) Prior to the neutral evaluation process, the neutral
6evaluator shall not establish another relationship with any of
7the parties in a manner that would raise questions about the
8integrity of the neutral evaluation, except that the neutral
9evaluator may conduct further neutral evaluations regarding
10other potential local public entities that may involve some of
11the same or similar constituents to a prior mediation.
12 (h) The neutral evaluator shall conduct the neutral
13evaluation process in a manner that promotes voluntary,
14uncoerced decision-making in which each party makes free and
15informed choices regarding the process and outcome.
16 (i) The neutral evaluator shall not impose a settlement on
17the parties. The neutral evaluator shall use his or her best
18efforts to assist the parties to reach a satisfactory
19resolution of their disputes. Subject to the discretion of the
20neutral evaluator, the neutral evaluator may make oral or
21written recommendations for settlement or plan of readjustment
22to a party privately or to all parties jointly.
23 (j) The neutral evaluator shall inform the local public
24entity and all parties of the provisions of Chapter 9 relative
25to other chapters of the bankruptcy codes. This instruction
26shall highlight the limited authority of United States

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1bankruptcy judges in Chapter 9, including the lack of
2flexibility available to judges to reduce or cram down debt
3repayments and similar efforts not available to reorganize the
4operations of the city that may be available to a corporate
5entity.
6 (k) The neutral evaluator may request from the parties
7documentation and other information that the neutral evaluator
8believes may be helpful in assisting the parties to address the
9obligations between them. This documentation may include the
10status of funds of the local public entity that clearly
11distinguishes between general funds and special funds, and the
12proposed plan of readjustment prepared by the local public
13entity.
14 (l) The neutral evaluator shall provide counsel and
15guidance to all parties, shall not be a legal representative of
16any party, and shall not have a fiduciary duty to any party.
17 (m) In the event of a settlement with all interested
18parties, the neutral evaluator may assist the parties in
19negotiating a pre-petitioned, pre-agreed plan of readjustment
20in connection with a potential Chapter 9 filing.
21 (n) If at any time during the neutral evaluation process
22the local public entity and a majority of the representatives
23of the interested parties participating in the neutral
24evaluation wish to remove the neutral evaluator, the local
25public entity or any interested party may make a request to the
26other interested parties to remove the neutral evaluator. If

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1the local public entity and the majority of the interested
2parties agree that the neutral evaluator should be removed, the
3parties shall select a new neutral evaluator.
4 (o) The local public entity and all interested parties
5participating in the neutral evaluation process shall
6negotiate in good faith.
7 (p) The local public entity and interested parties shall
8provide a representative of each party to attend all neutral
9evaluation sessions. Each representative shall have the
10authority to settle and resolve disputes or shall be in a
11position to present any proposed settlement or plan of
12readjustment to the parties participating in the neutral
13evaluation.
14 (q) The parties shall maintain the confidentiality of the
15neutral evaluation process and shall not disclose statements
16made, information disclosed, or documents prepared or
17produced, during the neutral evaluation process, at the
18conclusion of the neutral evaluation process or during any
19bankruptcy proceeding unless either of the following occur:
20 (i) all persons that conduct or otherwise participate
21 in the neutral evaluation expressly agree in writing or
22 orally to disclosure of the communication, document, or
23 writing; or
24 (ii) the information is deemed necessary by a judge
25 presiding over a bankruptcy proceeding pursuant to Chapter
26 9 of Title 11 of the United States Code to determine

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1 eligibility of a local public entity to proceed with a
2 bankruptcy proceeding pursuant to subsection (c) of
3 Section 109 of Title 11 of the United States Code.
4 (r) The neutral evaluation established by this process
5shall not last for more than 60 days after the date the
6evaluator is selected, unless the local public entity or a
7majority of participating interested parties elect to extend
8the process for up to 30 additional days. The neutral
9evaluation process shall not last for more than 90 days after
10the date the evaluator is selected unless the local public
11entity and a majority of the interested parties agree to an
12extension.
13 (s) The local public entity shall pay 50% of the costs of
14neutral evaluation, including but not limited to the fees of
15the evaluator, and the creditors shall pay the balance, unless
16otherwise agreed to by the parties.
17 (t) The neutral evaluation process shall end if any of the
18following occur:
19 (i) the parties execute an settlement agreement;
20 (ii) the parties reach an agreement or proposed plan of
21 readjustment that requires the approval of a bankruptcy
22 judge;
23 (iii) the neutral evaluation process has exceeded 60
24 days after the date the neutral evaluator was selected, the
25 parties have not reached an agreement, and neither the
26 local public entity or a majority of the interested parties

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1 elect to extend the neutral evaluation process past the
2 initial 60-day time period;
3 (iv) the local public entity initiated the neutral
4 evaluation process pursuant to subsection (a) of this
5 Section and received no responses from interested parties
6 within the time specified in subsection (b) of this
7 Section; or
8 (v) the fiscal condition of the local public entity
9 deteriorates to the point that a fiscal emergency is
10 declared pursuant to Section 20 of this Act and
11 necessitates the need to file a petition and exercise
12 powers pursuant to applicable federal bankruptcy law.
13 Section 20. Declaration of fiscal emergency.
14Notwithstanding any other Section of this Act, a local public
15entity may file a petition and exercise powers pursuant to
16applicable federal bankruptcy law, if the local public entity
17declares a fiscal emergency and adopts a resolution by a
18majority vote of the governing board at a noticed public
19hearing that includes findings that the financial state of the
20local public entity jeopardizes the health, safety, or
21well-being of the residents of the local public entity's
22jurisdiction or service area absent the protections of Chapter
239. The resolution shall make findings that the public entity is
24or will be unable to pay its obligations within the next 60
25days. Prior to a declaration of fiscal emergency and adoption

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1of a resolution, the local public entity shall place an item on
2the agenda of a noticed public hearing on the fiscal condition
3of the entity to take public comment. The board of supervisors
4of a county that intends to take action pursuant to this
5Section and places a notice on an agenda regarding a proposed
6resolution to declare a fiscal emergency may require local
7agencies with funds invested in the county treasury to provide
8a 5-day notice of withdrawal before the county is required to
9comply with a request for withdrawal of funds by that local
10agency.
11 Section 25. Liabilities. This Act shall not impose any
12liability or responsibility, in law or equity, upon the State,
13any department, agency, or other entity of the State, or any
14officer or employee of the State, for any action taken by any
15local public entity pursuant to this Act, for any violation of
16the provisions of this Act by any local public entity, or for
17any failure to comply with the provisions of this Act by any
18local public entity. No cause of action against the State, or
19any department, agency, entity of the State, or any officer or
20employee of the State acting in their official capacity may be
21maintained for any activity authorized by this Act, or for the
22act of a local public entity filing under Chapter 9 of Title 11
23of the United States Code, including any proceeding following a
24local public entity's filing.

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1 Section 30. Public access; meetings and information. Any
2meetings or writings made pursuant to this Act are prohibited
3from being disclosed to the public.
4 Section 35. The Open Meetings Act is amended by changing
5Section 2 as follows:
6 (5 ILCS 120/2) (from Ch. 102, par. 42)
7 Sec. 2. Open meetings.
8 (a) Openness required. All meetings of public bodies shall
9be open to the public unless excepted in subsection (c) and
10closed in accordance with Section 2a.
11 (b) Construction of exceptions. The exceptions contained
12in subsection (c) are in derogation of the requirement that
13public bodies meet in the open, and therefore, the exceptions
14are to be strictly construed, extending only to subjects
15clearly within their scope. The exceptions authorize but do not
16require the holding of a closed meeting to discuss a subject
17included within an enumerated exception.
18 (c) Exceptions. A public body may hold closed meetings to
19consider the following subjects:
20 (1) The appointment, employment, compensation,
21 discipline, performance, or dismissal of specific
22 employees of the public body or legal counsel for the
23 public body, including hearing testimony on a complaint
24 lodged against an employee of the public body or against

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1 legal counsel for the public body to determine its
2 validity.
3 (2) Collective negotiating matters between the public
4 body and its employees or their representatives, or
5 deliberations concerning salary schedules for one or more
6 classes of employees.
7 (3) The selection of a person to fill a public office,
8 as defined in this Act, including a vacancy in a public
9 office, when the public body is given power to appoint
10 under law or ordinance, or the discipline, performance or
11 removal of the occupant of a public office, when the public
12 body is given power to remove the occupant under law or
13 ordinance.
14 (4) Evidence or testimony presented in open hearing, or
15 in closed hearing where specifically authorized by law, to
16 a quasi-adjudicative body, as defined in this Act, provided
17 that the body prepares and makes available for public
18 inspection a written decision setting forth its
19 determinative reasoning.
20 (5) The purchase or lease of real property for the use
21 of the public body, including meetings held for the purpose
22 of discussing whether a particular parcel should be
23 acquired.
24 (6) The setting of a price for sale or lease of
25 property owned by the public body.
26 (7) The sale or purchase of securities, investments, or

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1 investment contracts.
2 (8) Security procedures and the use of personnel and
3 equipment to respond to an actual, a threatened, or a
4 reasonably potential danger to the safety of employees,
5 students, staff, the public, or public property.
6 (9) Student disciplinary cases.
7 (10) The placement of individual students in special
8 education programs and other matters relating to
9 individual students.
10 (11) Litigation, when an action against, affecting or
11 on behalf of the particular public body has been filed and
12 is pending before a court or administrative tribunal, or
13 when the public body finds that an action is probable or
14 imminent, in which case the basis for the finding shall be
15 recorded and entered into the minutes of the closed
16 meeting.
17 (12) The establishment of reserves or settlement of
18 claims as provided in the Local Governmental and
19 Governmental Employees Tort Immunity Act, if otherwise the
20 disposition of a claim or potential claim might be
21 prejudiced, or the review or discussion of claims, loss or
22 risk management information, records, data, advice or
23 communications from or with respect to any insurer of the
24 public body or any intergovernmental risk management
25 association or self insurance pool of which the public body
26 is a member.

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1 (13) Conciliation of complaints of discrimination in
2 the sale or rental of housing, when closed meetings are
3 authorized by the law or ordinance prescribing fair housing
4 practices and creating a commission or administrative
5 agency for their enforcement.
6 (14) Informant sources, the hiring or assignment of
7 undercover personnel or equipment, or ongoing, prior or
8 future criminal investigations, when discussed by a public
9 body with criminal investigatory responsibilities.
10 (15) Professional ethics or performance when
11 considered by an advisory body appointed to advise a
12 licensing or regulatory agency on matters germane to the
13 advisory body's field of competence.
14 (16) Self evaluation, practices and procedures or
15 professional ethics, when meeting with a representative of
16 a statewide association of which the public body is a
17 member.
18 (17) The recruitment, credentialing, discipline or
19 formal peer review of physicians or other health care
20 professionals for a hospital, or other institution
21 providing medical care, that is operated by the public
22 body.
23 (18) Deliberations for decisions of the Prisoner
24 Review Board.
25 (19) Review or discussion of applications received
26 under the Experimental Organ Transplantation Procedures

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1 Act.
2 (20) The classification and discussion of matters
3 classified as confidential or continued confidential by
4 the State Government Suggestion Award Board.
5 (21) Discussion of minutes of meetings lawfully closed
6 under this Act, whether for purposes of approval by the
7 body of the minutes or semi-annual review of the minutes as
8 mandated by Section 2.06.
9 (22) Deliberations for decisions of the State
10 Emergency Medical Services Disciplinary Review Board.
11 (23) The operation by a municipality of a municipal
12 utility or the operation of a municipal power agency or
13 municipal natural gas agency when the discussion involves
14 (i) contracts relating to the purchase, sale, or delivery
15 of electricity or natural gas or (ii) the results or
16 conclusions of load forecast studies.
17 (24) Meetings of a residential health care facility
18 resident sexual assault and death review team or the
19 Executive Council under the Abuse Prevention Review Team
20 Act.
21 (25) Meetings of an independent team of experts under
22 Brian's Law.
23 (26) Meetings of a mortality review team appointed
24 under the Department of Juvenile Justice Mortality Review
25 Team Act.
26 (27) Confidential information, when discussed by one

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1 or more members of an elder abuse fatality review team,
2 designated under Section 15 of the Elder Abuse and Neglect
3 Act, while participating in a review conducted by that team
4 of the death of an elderly person in which abuse or neglect
5 is suspected, alleged, or substantiated; provided that
6 before the review team holds a closed meeting, or closes an
7 open meeting, to discuss the confidential information,
8 each participating review team member seeking to disclose
9 the confidential information in the closed meeting or
10 closed portion of the meeting must state on the record
11 during an open meeting or the open portion of a meeting the
12 nature of the information to be disclosed and the legal
13 basis for otherwise holding that information confidential.
14 (28) Correspondence and records (i) that may not be
15 disclosed under Section 11-9 of the Public Aid Code or (ii)
16 that pertain to appeals under Section 11-8 of the Public
17 Aid Code.
18 (29) (28) Meetings between internal or external
19 auditors and governmental audit committees, finance
20 committees, and their equivalents, when the discussion
21 involves internal control weaknesses, identification of
22 potential fraud risk areas, known or suspected frauds, and
23 fraud interviews conducted in accordance with generally
24 accepted auditing standards of the United States of
25 America.
26 (30) Meetings held pursuant to the Local Government

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1 Bankruptcy Neutral Evaluation Act.
2 (d) Definitions. For purposes of this Section:
3 "Employee" means a person employed by a public body whose
4relationship with the public body constitutes an
5employer-employee relationship under the usual common law
6rules, and who is not an independent contractor.
7 "Public office" means a position created by or under the
8Constitution or laws of this State, the occupant of which is
9charged with the exercise of some portion of the sovereign
10power of this State. The term "public office" shall include
11members of the public body, but it shall not include
12organizational positions filled by members thereof, whether
13established by law or by a public body itself, that exist to
14assist the body in the conduct of its business.
15 "Quasi-adjudicative body" means an administrative body
16charged by law or ordinance with the responsibility to conduct
17hearings, receive evidence or testimony and make
18determinations based thereon, but does not include local
19electoral boards when such bodies are considering petition
20challenges.
21 (e) Final action. No final action may be taken at a closed
22meeting. Final action shall be preceded by a public recital of
23the nature of the matter being considered and other information
24that will inform the public of the business being conducted.
25(Source: P.A. 96-1235, eff. 1-1-11; 96-1378, eff. 7-29-10;
2696-1428, eff. 8-11-10; 97-318, eff. 1-1-12; 97-333, eff.

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18-12-11; 97-452, eff. 8-19-11; revised 9-2-11.)
2 Section 40. The Freedom of Information Act is amended by
3changing Section 7.5 as follows:
4 (5 ILCS 140/7.5)
5 Sec. 7.5. Statutory Exemptions. To the extent provided for
6by the statutes referenced below, the following shall be exempt
7from inspection and copying:
8 (a) All information determined to be confidential under
9Section 4002 of the Technology Advancement and Development Act.
10 (b) Library circulation and order records identifying
11library users with specific materials under the Library Records
12Confidentiality Act.
13 (c) Applications, related documents, and medical records
14received by the Experimental Organ Transplantation Procedures
15Board and any and all documents or other records prepared by
16the Experimental Organ Transplantation Procedures Board or its
17staff relating to applications it has received.
18 (d) Information and records held by the Department of
19Public Health and its authorized representatives relating to
20known or suspected cases of sexually transmissible disease or
21any information the disclosure of which is restricted under the
22Illinois Sexually Transmissible Disease Control Act.
23 (e) Information the disclosure of which is exempted under
24Section 30 of the Radon Industry Licensing Act.

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1 (f) Firm performance evaluations under Section 55 of the
2Architectural, Engineering, and Land Surveying Qualifications
3Based Selection Act.
4 (g) Information the disclosure of which is restricted and
5exempted under Section 50 of the Illinois Prepaid Tuition Act.
6 (h) Information the disclosure of which is exempted under
7the State Officials and Employees Ethics Act, and records of
8any lawfully created State or local inspector general's office
9that would be exempt if created or obtained by an Executive
10Inspector General's office under that Act.
11 (i) Information contained in a local emergency energy plan
12submitted to a municipality in accordance with a local
13emergency energy plan ordinance that is adopted under Section
1411-21.5-5 of the Illinois Municipal Code.
15 (j) Information and data concerning the distribution of
16surcharge moneys collected and remitted by wireless carriers
17under the Wireless Emergency Telephone Safety Act.
18 (k) Law enforcement officer identification information or
19driver identification information compiled by a law
20enforcement agency or the Department of Transportation under
21Section 11-212 of the Illinois Vehicle Code.
22 (l) Records and information provided to a residential
23health care facility resident sexual assault and death review
24team or the Executive Council under the Abuse Prevention Review
25Team Act.
26 (m) Information provided to the predatory lending database

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1created pursuant to Article 3 of the Residential Real Property
2Disclosure Act, except to the extent authorized under that
3Article.
4 (n) Defense budgets and petitions for certification of
5compensation and expenses for court appointed trial counsel as
6provided under Sections 10 and 15 of the Capital Crimes
7Litigation Act. This subsection (n) shall apply until the
8conclusion of the trial of the case, even if the prosecution
9chooses not to pursue the death penalty prior to trial or
10sentencing.
11 (o) Information that is prohibited from being disclosed
12under Section 4 of the Illinois Health and Hazardous Substances
13Registry Act.
14 (p) Security portions of system safety program plans,
15investigation reports, surveys, schedules, lists, data, or
16information compiled, collected, or prepared by or for the
17Regional Transportation Authority under Section 2.11 of the
18Regional Transportation Authority Act or the St. Clair County
19Transit District under the Bi-State Transit Safety Act.
20 (q) Information prohibited from being disclosed by the
21Personnel Records Review Act.
22 (r) Information prohibited from being disclosed by the
23Illinois School Student Records Act.
24 (s) Information the disclosure of which is restricted under
25Section 5-108 of the Public Utilities Act.
26 (t) All identified or deidentified health information in

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1the form of health data or medical records contained in, stored
2in, submitted to, transferred by, or released from the Illinois
3Health Information Exchange, and identified or deidentified
4health information in the form of health data and medical
5records of the Illinois Health Information Exchange in the
6possession of the Illinois Health Information Exchange
7Authority due to its administration of the Illinois Health
8Information Exchange. The terms "identified" and
9"deidentified" shall be given the same meaning as in the Health
10Insurance Accountability and Portability Act of 1996, Public
11Law 104-191, or any subsequent amendments thereto, and any
12regulations promulgated thereunder.
13 (u) Records and information provided to an independent team
14of experts under Brian's Law.
15 (v) Names and information of people who have applied for or
16received Firearm Owner's Identification Cards under the
17Firearm Owners Identification Card Act.
18 (w) (v) Personally identifiable information which is
19exempted from disclosure under subsection (g) of Section 19.1
20of the Toll Highway Act.
21 (x) All records and information prohibited from being
22disclosed by the Local Government Bankruptcy Neutral
23Evaluation Act.
24(Source: P.A. 96-542, eff. 1-1-10; 96-1235, eff. 1-1-11;
2596-1331, eff. 7-27-10; 97-80, eff. 7-5-11; 97-333, eff.
268-12-11; 97-342, eff. 8-12-11; revised 9-2-11.)
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