Bill Text: IL SB1364 | 2011-2012 | 97th General Assembly | Chaptered

---

Bill Title: Amends the Public Officer Prohibited Activities Act. Exempts from certain provisions concerning prohibited interests in contracts directors serving on a public hospital board under Article 11 of the Illinois Municipal Code.

Sponsorship: Partisan Bill (Republican 2)

Status: (Passed) 2011-08-23 - Public Act . . . . . . . . . 97-0520 [SB1364 Detail]

Download: Illinois-2011-SB1364-Chaptered.html

---

Public Act 097-0520
SB1364 Enrolled LRB097 05283 KMW 45337 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, or
to any person serving as both a contractual employee and as a
member of a public hospital board as provided under Article 11
of the Illinois Municipal Code in a municipality with a
population between 13,000 and 16,000 that is located in a
county with a population between 50,000 and 70,000.
(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; 96-1058, eff. 7-14-10.)