Illinois 2023-2024 Regular Session

Illinois House Bill HB2079 Compare Versions

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1-Public Act 103-0025
21 HB2079 EnrolledLRB103 04677 AWJ 49685 b HB2079 Enrolled LRB103 04677 AWJ 49685 b
32 HB2079 Enrolled LRB103 04677 AWJ 49685 b
4-AN ACT concerning local government.
5-Be it enacted by the People of the State of Illinois,
6-represented in the General Assembly:
7-Section 5. The Public Officer Prohibited Activities Act is
8-amended by changing Section 3 as follows:
9-(50 ILCS 105/3) (from Ch. 102, par. 3)
10-Sec. 3. Prohibited interest in contracts.
11-(a) No person holding any office, either by election or
12-appointment under the laws or Constitution of this State, may
13-be in any manner financially interested directly in his own
14-name or indirectly in the name of any other person,
15-association, trust, or corporation, in any contract or the
16-performance of any work in the making or letting of which such
17-officer may be called upon to act or vote. No such officer may
18-represent, either as agent or otherwise, any person,
19-association, trust, or corporation, with respect to any
20-application or bid for any contract or work in regard to which
21-such officer may be called upon to vote. Nor may any such
22-officer take or receive, or offer to take or receive, either
23-directly or indirectly, any money or other thing of value as a
24-gift or bribe or means of influencing his vote or action in his
25-official character. Any contract made and procured in
26-violation hereof is void. This Section shall not apply to any
3+1 AN ACT concerning local government.
4+2 Be it enacted by the People of the State of Illinois,
5+3 represented in the General Assembly:
6+4 Section 5. The Public Officer Prohibited Activities Act is
7+5 amended by changing Section 3 as follows:
8+6 (50 ILCS 105/3) (from Ch. 102, par. 3)
9+7 Sec. 3. Prohibited interest in contracts.
10+8 (a) No person holding any office, either by election or
11+9 appointment under the laws or Constitution of this State, may
12+10 be in any manner financially interested directly in his own
13+11 name or indirectly in the name of any other person,
14+12 association, trust, or corporation, in any contract or the
15+13 performance of any work in the making or letting of which such
16+14 officer may be called upon to act or vote. No such officer may
17+15 represent, either as agent or otherwise, any person,
18+16 association, trust, or corporation, with respect to any
19+17 application or bid for any contract or work in regard to which
20+18 such officer may be called upon to vote. Nor may any such
21+19 officer take or receive, or offer to take or receive, either
22+20 directly or indirectly, any money or other thing of value as a
23+21 gift or bribe or means of influencing his vote or action in his
24+22 official character. Any contract made and procured in
25+23 violation hereof is void. This Section shall not apply to any
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33-person serving on an advisory panel or commission, to any
34-director serving on a hospital district board as provided
35-under subsection (a-5) of Section 13 of the Hospital District
36-Law, or to any person serving as both a contractual employee
37-and as a member of a public hospital board as provided under
38-Article 11 of the Illinois Municipal Code in a municipality
39-with a population between 13,000 and 16,000 that is located in
40-a county with a population between 50,000 and 70,000.
41-(b) However, any elected or appointed member of the
42-governing body may provide materials, merchandise, property,
43-services, or labor, subject to the following provisions under
44-either paragraph (1) or (2):
45-(1) If:
46-A. the contract is with a person, firm,
47-partnership, association, corporation, or cooperative
48-association in which such interested member of the
49-governing body of the municipality has less than a 7
50-1/2% share in the ownership; and
51-B. such interested member publicly discloses the
52-nature and extent of his interest prior to or during
53-deliberations concerning the proposed award of the
54-contract; and
55-C. such interested member abstains from voting on
56-the award of the contract, though he shall be
57-considered present for the purposes of establishing a
58-quorum; and
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34+1 person serving on an advisory panel or commission, to any
35+2 director serving on a hospital district board as provided
36+3 under subsection (a-5) of Section 13 of the Hospital District
37+4 Law, or to any person serving as both a contractual employee
38+5 and as a member of a public hospital board as provided under
39+6 Article 11 of the Illinois Municipal Code in a municipality
40+7 with a population between 13,000 and 16,000 that is located in
41+8 a county with a population between 50,000 and 70,000.
42+9 (b) However, any elected or appointed member of the
43+10 governing body may provide materials, merchandise, property,
44+11 services, or labor, subject to the following provisions under
45+12 either paragraph (1) or (2):
46+13 (1) If:
47+14 A. the contract is with a person, firm,
48+15 partnership, association, corporation, or cooperative
49+16 association in which such interested member of the
50+17 governing body of the municipality has less than a 7
51+18 1/2% share in the ownership; and
52+19 B. such interested member publicly discloses the
53+20 nature and extent of his interest prior to or during
54+21 deliberations concerning the proposed award of the
55+22 contract; and
56+23 C. such interested member abstains from voting on
57+24 the award of the contract, though he shall be
58+25 considered present for the purposes of establishing a
59+26 quorum; and
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61-D. such contract is approved by a majority vote of
62-those members presently holding office; and
63-E. the contract is awarded after sealed bids to
64-the lowest responsible bidder if the amount of the
65-contract exceeds $1500, or awarded without bidding if
66-the amount of the contract is less than $1500; and
67-F. the award of the contract would not cause the
68-aggregate amount of all such contracts so awarded to
69-the same person, firm, association, partnership,
70-corporation, or cooperative association in the same
71-fiscal year to exceed $25,000.
72-(2) If:
73-A. the award of the contract is approved by a
74-majority vote of the governing body of the
75-municipality provided that any such interested member
76-shall abstain from voting; and
77-B. the amount of the contract does not exceed
78-$2,000; and
79-C. the award of the contract would not cause the
80-aggregate amount of all such contracts so awarded to
81-the same person, firm, association, partnership,
82-corporation, or cooperative association in the same
83-fiscal year to exceed $4,000; and
84-D. such interested member publicly discloses the
85-nature and extent of his interest prior to or during
86-deliberations concerning the proposed award of the
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89-contract; and
90-E. such interested member abstains from voting on
91-the award of the contract, though he shall be
92-considered present for the purposes of establishing a
93-quorum.
94-(b-5) In addition to the above exemptions, any elected or
95-appointed member of the governing body may provide materials,
96-merchandise, property, services, or labor if:
97-A. the contract is with a person, firm, partnership,
98-association, corporation, or cooperative association in
99-which the interested member of the governing body of the
100-municipality, advisory panel, or commission has less than
101-a 1% share in the ownership; and
102-B. the award of the contract is approved by a majority
103-vote of the governing body of the municipality provided
104-that any such interested member shall abstain from voting;
105-and
106-C. such interested member publicly discloses the
107-nature and extent of his interest before or during
108-deliberations concerning the proposed award of the
109-contract; and
110-D. such interested member abstains from voting on the
111-award of the contract, though he shall be considered
112-present for the purposes of establishing a quorum.
113-(c) A contract for the procurement of public utility
114-services by a public entity with a public utility company is
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117-not barred by this Section by one or more members of the
118-governing body of the public entity being an officer or
119-employee of the public utility company or holding an ownership
120-interest of no more than 7 1/2% in the public utility company,
121-or holding an ownership interest of any size if the public
122-entity is a municipality with a population of less than 7,500
123-and the public utility's rates are approved by the Illinois
124-Commerce Commission. An elected or appointed member of the
125-governing body of the public entity having such an interest
126-shall be deemed not to have a prohibited interest under this
127-Section.
128-(d) Notwithstanding any other provision of this Section or
129-any other law to the contrary, until January 1, 1994, a member
130-of the city council of a municipality with a population under
131-20,000 may purchase real estate from the municipality, at a
132-price of not less than 100% of the value of the real estate as
133-determined by a written MAI certified appraisal or by a
134-written certified appraisal of a State certified or licensed
135-real estate appraiser, if the purchase is approved by a
136-unanimous vote of the city council members then holding office
137-(except for the member desiring to purchase the real estate,
138-who shall not vote on the question).
139-(e) For the purposes of this Section only, a municipal
140-officer shall not be deemed interested if the officer is an
141-employee of a company or owns or holds an interest of 1% or
142-less in the municipal officer's individual name in a company,
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70+1 D. such contract is approved by a majority vote of
71+2 those members presently holding office; and
72+3 E. the contract is awarded after sealed bids to
73+4 the lowest responsible bidder if the amount of the
74+5 contract exceeds $1500, or awarded without bidding if
75+6 the amount of the contract is less than $1500; and
76+7 F. the award of the contract would not cause the
77+8 aggregate amount of all such contracts so awarded to
78+9 the same person, firm, association, partnership,
79+10 corporation, or cooperative association in the same
80+11 fiscal year to exceed $25,000.
81+12 (2) If:
82+13 A. the award of the contract is approved by a
83+14 majority vote of the governing body of the
84+15 municipality provided that any such interested member
85+16 shall abstain from voting; and
86+17 B. the amount of the contract does not exceed
87+18 $2,000; and
88+19 C. the award of the contract would not cause the
89+20 aggregate amount of all such contracts so awarded to
90+21 the same person, firm, association, partnership,
91+22 corporation, or cooperative association in the same
92+23 fiscal year to exceed $4,000; and
93+24 D. such interested member publicly discloses the
94+25 nature and extent of his interest prior to or during
95+26 deliberations concerning the proposed award of the
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145-or both, that company is involved in the transaction of
146-business with the municipality, and that company's stock is
147-traded on a nationally recognized securities market, provided
148-the interested member: (i) publicly discloses the fact that he
149-or she is an employee or holds an interest of 1% or less in a
150-company before deliberation of the proposed award of the
151-contract; (ii) refrains from evaluating, recommending,
152-approving, deliberating, or otherwise participating in
153-negotiation, approval, or both, of the contract, work, or
154-business; (iii) abstains from voting on the award of the
155-contract though he or she shall be considered present for
156-purposes of establishing a quorum; and (iv) the contract is
157-approved by a majority vote of those members currently holding
158-office.
159-A municipal officer shall not be deemed interested if the
160-officer owns or holds an interest of 1% or less, not in the
161-officer's individual name but through a mutual fund or
162-exchange-traded fund, in a company, that company is involved
163-in the transaction of business with the municipality, and that
164-company's stock is traded on a nationally recognized
165-securities market.
166-(f) Under either of the following circumstances, a
167-municipal, or county, or township officer may hold a position
168-on the board of a not-for-profit corporation that is
169-interested in a contract, work, or business of the
170-municipality, or county, or township:
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173-(1) If the municipal, or county, or township officer
174-is appointed by the governing body of the municipality, or
175-county, or township to represent the interests of the
176-municipality, or county, or township on a not-for-profit
177-corporation's board, then the municipal, or county, or
178-township officer may actively vote on matters involving
179-either that board or the municipality, or county, or
180-township, at any time, so long as the membership on the
181-not-for-profit board is not a paid position, except that
182-the municipal, or county, or township officer may be
183-reimbursed by the not-for-profit board for expenses
184-incurred as the result of membership on the not-for-profit
185-board.
186-(2) If the municipal, or county, or township officer
187-is not appointed to the governing body of a not-for-profit
188-corporation by the governing body of the municipality, or
189-county, or township, then the municipal, or county, or
190-township officer may continue to serve; however, the
191-municipal, or county, or township officer shall abstain
192-from voting on any proposition before the municipal, or
193-county, or township governing body directly involving the
194-not-for-profit corporation and, for those matters, shall
195-not be counted as present for the purposes of a quorum of
196-the municipal, or county, or township governing body.
197-(Source: P.A. 100-201, eff. 8-18-17.)
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106+1 contract; and
107+2 E. such interested member abstains from voting on
108+3 the award of the contract, though he shall be
109+4 considered present for the purposes of establishing a
110+5 quorum.
111+6 (b-5) In addition to the above exemptions, any elected or
112+7 appointed member of the governing body may provide materials,
113+8 merchandise, property, services, or labor if:
114+9 A. the contract is with a person, firm, partnership,
115+10 association, corporation, or cooperative association in
116+11 which the interested member of the governing body of the
117+12 municipality, advisory panel, or commission has less than
118+13 a 1% share in the ownership; and
119+14 B. the award of the contract is approved by a majority
120+15 vote of the governing body of the municipality provided
121+16 that any such interested member shall abstain from voting;
122+17 and
123+18 C. such interested member publicly discloses the
124+19 nature and extent of his interest before or during
125+20 deliberations concerning the proposed award of the
126+21 contract; and
127+22 D. such interested member abstains from voting on the
128+23 award of the contract, though he shall be considered
129+24 present for the purposes of establishing a quorum.
130+25 (c) A contract for the procurement of public utility
131+26 services by a public entity with a public utility company is
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142+1 not barred by this Section by one or more members of the
143+2 governing body of the public entity being an officer or
144+3 employee of the public utility company or holding an ownership
145+4 interest of no more than 7 1/2% in the public utility company,
146+5 or holding an ownership interest of any size if the public
147+6 entity is a municipality with a population of less than 7,500
148+7 and the public utility's rates are approved by the Illinois
149+8 Commerce Commission. An elected or appointed member of the
150+9 governing body of the public entity having such an interest
151+10 shall be deemed not to have a prohibited interest under this
152+11 Section.
153+12 (d) Notwithstanding any other provision of this Section or
154+13 any other law to the contrary, until January 1, 1994, a member
155+14 of the city council of a municipality with a population under
156+15 20,000 may purchase real estate from the municipality, at a
157+16 price of not less than 100% of the value of the real estate as
158+17 determined by a written MAI certified appraisal or by a
159+18 written certified appraisal of a State certified or licensed
160+19 real estate appraiser, if the purchase is approved by a
161+20 unanimous vote of the city council members then holding office
162+21 (except for the member desiring to purchase the real estate,
163+22 who shall not vote on the question).
164+23 (e) For the purposes of this Section only, a municipal
165+24 officer shall not be deemed interested if the officer is an
166+25 employee of a company or owns or holds an interest of 1% or
167+26 less in the municipal officer's individual name in a company,
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178+1 or both, that company is involved in the transaction of
179+2 business with the municipality, and that company's stock is
180+3 traded on a nationally recognized securities market, provided
181+4 the interested member: (i) publicly discloses the fact that he
182+5 or she is an employee or holds an interest of 1% or less in a
183+6 company before deliberation of the proposed award of the
184+7 contract; (ii) refrains from evaluating, recommending,
185+8 approving, deliberating, or otherwise participating in
186+9 negotiation, approval, or both, of the contract, work, or
187+10 business; (iii) abstains from voting on the award of the
188+11 contract though he or she shall be considered present for
189+12 purposes of establishing a quorum; and (iv) the contract is
190+13 approved by a majority vote of those members currently holding
191+14 office.
192+15 A municipal officer shall not be deemed interested if the
193+16 officer owns or holds an interest of 1% or less, not in the
194+17 officer's individual name but through a mutual fund or
195+18 exchange-traded fund, in a company, that company is involved
196+19 in the transaction of business with the municipality, and that
197+20 company's stock is traded on a nationally recognized
198+21 securities market.
199+22 (f) Under either of the following circumstances, a
200+23 municipal, or county, or township officer may hold a position
201+24 on the board of a not-for-profit corporation that is
202+25 interested in a contract, work, or business of the
203+26 municipality, or county, or township:
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214+1 (1) If the municipal, or county, or township officer
215+2 is appointed by the governing body of the municipality, or
216+3 county, or township to represent the interests of the
217+4 municipality, or county, or township on a not-for-profit
218+5 corporation's board, then the municipal, or county, or
219+6 township officer may actively vote on matters involving
220+7 either that board or the municipality, or county, or
221+8 township, at any time, so long as the membership on the
222+9 not-for-profit board is not a paid position, except that
223+10 the municipal, or county, or township officer may be
224+11 reimbursed by the not-for-profit board for expenses
225+12 incurred as the result of membership on the not-for-profit
226+13 board.
227+14 (2) If the municipal, or county, or township officer
228+15 is not appointed to the governing body of a not-for-profit
229+16 corporation by the governing body of the municipality, or
230+17 county, or township, then the municipal, or county, or
231+18 township officer may continue to serve; however, the
232+19 municipal, or county, or township officer shall abstain
233+20 from voting on any proposition before the municipal, or
234+21 county, or township governing body directly involving the
235+22 not-for-profit corporation and, for those matters, shall
236+23 not be counted as present for the purposes of a quorum of
237+24 the municipal, or county, or township governing body.
238+25 (Source: P.A. 100-201, eff. 8-18-17.)
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