Rep. Ron Sandack

Filed: 4/20/2015

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 1605

2    AMENDMENT NO. ______. Amend House Bill 1605 by replacing
3everything after the enacting clause with the following:
 
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

 

 

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1public and meet their contractual and other obligations during
2any restructuring or financial reorganization process.
3Furthermore, it is in the best interest of the public, the
4State, and local governmental entities that employees, trade
5creditors, bondholders, and other interest-holders be included
6in an appropriate restructuring process and have an adequate
7understanding of the financial capacity of local governmental
8entities and their obligations, as a clear understanding of
9both is necessary for any restructuring or reorganization
10process.
11    To the extent financial relief granted through Chapter 9
12can affect debt service payments, the bondholders have a direct
13interest in the Chapter 9 process, particularly prior to
14filing. Therefore, it is important for those parties to be able
15to participate in a prefiling confidential neutral evaluation
16process that could assist parties in reaching a settlement and
17avoiding a bankruptcy filing or otherwise lead to a
18pre-negotiated consensual plan of readjustment as clearly
19contemplated by subsection (c) of Section 109 of Title 11 of
20the United States Code.
21    To the extent financial relief granted through Chapter 9
22could affect public employee compensation, employees have a
23direct interest in the Chapter 9 process, particularly prior to
24filing. Therefore, it is important for those parties to be able
25to participate in a prefiling confidential neutral evaluation
26process that could assist parties in reaching a settlement or

 

 

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1otherwise lead to a pre-negotiated, consensual plan of
2adjustment and avoid a Chapter 9 filing.
3    Given the connection between State allocations and local
4budgets, the State has a role in assisting local public
5entities to address potential insolvency with the goal of
6averting bankruptcy filings where possible and providing a
7process designed to make the debt restructuring process in or
8outside of a Chapter 9 bankruptcy as cost effective and
9efficient as possible for all participants.
10    Illinois taxpayers who rely on public safety, senior,
11recreational, health, library, and other public services, as
12well as those who own and operate businesses in our
13communities, deserve every reasonable and appropriate effort
14that State and local government can make to avoid adverse
15consequences of Chapter 9 bankruptcy filings, particularly
16where a neutral evaluation may lead to the avoidance of Chapter
179 filing by an out-of-court resolution of outstanding
18obligations and disputes.
19    Resolving local and State business and financial issues in
20a timely, fair, and cost-effective manner is an integral part
21of a successful government and is in the public interest. It
22has long been recognized that alternative dispute resolution
23proceedings, like a neutral evaluation, offer an economical,
24discreet, and expeditious way to resolve potentially
25devastating situations.
26    Through the neutral evaluation process, the neutral

 

 

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1evaluator, a specially trained, neutral third party, can assist
2the local public entity and its creditors and stakeholders to
3fully explore alternatives, while allowing the interested
4parties to exchange information in a confidential environment
5with the assistance and supervision of a neutral evaluator to
6determine whether the entity's contractual and financial
7obligations can be renegotiated on a consensual basis.
 
8    Section 5. Eligibility. A local public entity in this State
9may file a petition and exercise powers pursuant to applicable
10federal bankruptcy law if either of the following apply: (i)
11the local public entity has participated in a neutral
12evaluation process pursuant to Section 15 of this Act, or (ii)
13the local public entity declares a fiscal emergency and adopts
14a resolution by a majority vote of the governing board pursuant
15to Section 20 of this Act.
 
16    Section 10. Definitions. As used in this Act the following
17terms mean:
18    "Chapter 9" means Chapter 9 of Title 11 of the United
19States Code.
20    "Creditor" means either of the following:
21        An entity that has a noncontingent claim against a
22    municipality that arose at the time of or before the
23    commencement of the neutral evaluation process and whose
24    claim represents at least $5,000,000 or comprises more than

 

 

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

 

 

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1entity may invite holders of contingent claims to participate
2as interested parties in the neutral evaluation if the local
3public entity determines that the contingency is likely to
4occur and the claim may represent $5,000,000 or comprise more
5than 5% of the local public entity's debt or obligations,
6whichever is less.
7    "Local public entity" means any county, municipality,
8township, special district, public authority, public agency,
9or other entity that is a political subdivision or public
10agency or instrumentality of the State, or that qualifies as a
11debtor under any other federal bankruptcy law applicable to
12local public entities. For purposes of this Act, "local public
13entity" does not include a school district.
14    "Local public entity representative" means the person or
15persons designated by the local public agency with authority to
16make recommendations and to attend the neutral evaluation on
17behalf of the governing body of the local public agency.
18    "Neutral evaluation" is a form of non-binding alternative
19dispute resolution that may be known as mandatory mediation. A
20"neutral evaluator" may also be known as a mediator.
 
21    Section 15. Neutral evaluation process.
22    (a) A local public entity may initiate the neutral
23evaluation process if the local public entity is or likely will
24become unable to meet its financial obligations as and when
25those obligations are due or become due and owing. The local

 

 

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1public entity shall initiate the neutral evaluation by
2providing notice by certified mail of a request for neutral
3evaluation to all interested parties, as defined in Section 10
4of this Act.
5    (b) Interested parties shall respond within 10 business
6days after receipt of notice of the local public entity's
7request for neutral evaluation.
8    (c) The local public entity and the interested parties
9agreeing to participate in the neutral evaluation shall,
10through a mutually agreed upon process, select the neutral
11evaluator to oversee the neutral evaluation process and
12facilitate all discussions in an effort to resolve their
13disputes.
14    If the local public entity and interested parties fail to
15agree on a neutral evaluator within 7 days after the interested
16parties have responded to the notification sent by the public
17entity, the public entity shall select 5 qualified neutral
18evaluators and provide their names, references, and
19backgrounds to the participating interested parties. Within 3
20business days, a majority of participating interested parties
21may strike up to 4 names from the list. If a majority of
22participating interested parties strikes 4 names, the
23remaining candidate shall be the neutral evaluator. If the
24majority of participating parties strikes fewer than 4 names,
25the local public entity may choose which of the remaining
26candidates shall be the neutral evaluator.

 

 

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1    (d) A neutral evaluator shall have experience and training
2in conflict resolution and alternative dispute resolution and
3shall meet at least one of the following qualifications:
4        (1) at least 10 years of high-level business or legal
5    practice involving bankruptcy or service as a United States
6    Bankruptcy Judge; or
7        (2) professional experience or training in local
8    government finance and one or more of the following areas:
9    local government organization, local government debt
10    restructuring, local government finances dispute
11    resolution, Chapter 9 bankruptcy, public finance,
12    taxation, Illinois Constitutional law, Illinois labor law,
13    or federal labor law.
14    (e) The neutral evaluator shall be impartial, objective,
15independent, and free from prejudice. The neutral evaluator
16shall not act with partiality or prejudice based on any
17participant's personal characteristics, background, values or
18beliefs, or performance during the neutral evaluation process.
19    (f) The neutral evaluator shall avoid a conflict of
20interest or the appearance of a conflict of interest during the
21neutral evaluation process. The neutral evaluator shall make a
22reasonable inquiry to determine whether there are any facts
23that a reasonable individual would consider likely to create a
24potential or actual conflict of interest. Notwithstanding
25subsection (n) of this Section, if the neutral evaluator is
26informed of the existence of any facts that a reasonable

 

 

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1individual would consider likely to create a potential or
2actual conflict of interest, the neutral evaluator shall
3disclose these facts in writing to the local public entity and
4all interested parties involved in the neutral evaluation. If
5any party to the neutral evaluation objects to the neutral
6evaluator, that party shall notify all other parties to the
7neutral evaluation, including the neutral evaluator, within 15
8days after receipt of the notice from the neutral evaluator,
9and the neutral evaluator shall withdraw and a new neutral
10evaluator shall be selected pursuant to subsections (a) and (b)
11of this Section.
12    (g) Prior to the neutral evaluation process, the neutral
13evaluator shall not establish another relationship with any of
14the parties in a manner that would raise questions about the
15integrity of the neutral evaluation, except that the neutral
16evaluator may conduct further neutral evaluations regarding
17other potential local public entities that may involve some of
18the same or similar constituents to a prior mediation.
19    (h) The neutral evaluator shall conduct the neutral
20evaluation process in a manner that promotes voluntary,
21uncoerced decision-making in which each party makes free and
22informed choices regarding the process and outcome.
23    (i) The neutral evaluator shall not impose a settlement on
24the parties. The neutral evaluator shall use his or her best
25efforts to assist the parties to reach a satisfactory
26resolution of their disputes. Subject to the discretion of the

 

 

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1neutral evaluator, the neutral evaluator may make oral or
2written recommendations for settlement or plan of readjustment
3to a party privately or to all parties jointly.
4    (j) The neutral evaluator shall inform the local public
5entity and all parties of the provisions of Chapter 9 relative
6to other chapters of the bankruptcy codes. This instruction
7shall highlight the limited authority of United States
8bankruptcy judges in Chapter 9, including the lack of
9flexibility available to judges to reduce or cram down debt
10repayments and similar efforts not available to reorganize the
11operations of the city that may be available to a corporate
12entity.
13    (k) The neutral evaluator may request from the parties
14documentation and other information that the neutral evaluator
15believes may be helpful in assisting the parties to address the
16obligations between them. This documentation may include the
17status of funds of the local public entity that clearly
18distinguishes between general funds and special funds, and the
19proposed plan of readjustment prepared by the local public
20entity.
21    (l) The neutral evaluator shall provide counsel and
22guidance to all parties, shall not be a legal representative of
23any party, and shall not have a fiduciary duty to any party.
24    (m) In the event of a settlement with all interested
25parties, the neutral evaluator may assist the parties in
26negotiating a pre-petitioned, pre-agreed plan of readjustment

 

 

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1in connection with a potential Chapter 9 filing.
2    (n) If at any time during the neutral evaluation process
3the local public entity and a majority of the representatives
4of the interested parties participating in the neutral
5evaluation wish to remove the neutral evaluator, the local
6public entity or any interested party may make a request to the
7other interested parties to remove the neutral evaluator. If
8the local public entity and the majority of the interested
9parties agree that the neutral evaluator should be removed, the
10parties shall select a new neutral evaluator.
11    (o) The local public entity and all interested parties
12participating in the neutral evaluation process shall
13negotiate in good faith.
14    (p) The local public entity and interested parties shall
15provide a representative of each party to attend all neutral
16evaluation sessions. Each representative shall have the
17authority to settle and resolve disputes or shall be in a
18position to present any proposed settlement or plan of
19readjustment to the parties participating in the neutral
20evaluation.
21    (q) The parties shall maintain the confidentiality of the
22neutral evaluation process and shall not disclose statements
23made, information disclosed, or documents prepared or
24produced, during the neutral evaluation process, at the
25conclusion of the neutral evaluation process or during any
26bankruptcy proceeding unless either of the following occur:

 

 

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1        (i) all persons that conduct or otherwise participate
2    in the neutral evaluation expressly agree in writing or
3    orally to disclosure of the communication, document, or
4    writing; or
5        (ii) the information is deemed necessary by a judge
6    presiding over a bankruptcy proceeding pursuant to Chapter
7    9 of Title 11 of the United States Code to determine
8    eligibility of a local public entity to proceed with a
9    bankruptcy proceeding pursuant to subsection (c) of
10    Section 109 of Title 11 of the United States Code.
11    (r) The neutral evaluation established by this process
12shall not last for more than 60 days after the date the
13evaluator is selected, unless the local public entity or a
14majority of participating interested parties elect to extend
15the process for up to 30 additional days. The neutral
16evaluation process shall not last for more than 90 days after
17the date the evaluator is selected unless the local public
18entity and a majority of the interested parties agree to an
19extension.
20    (s) The local public entity shall pay 50% of the costs of
21neutral evaluation, including but not limited to the fees of
22the evaluator, and the creditors shall pay the balance, unless
23otherwise agreed to by the parties.
24    (t) The neutral evaluation process shall end if any of the
25following occur:
26        (i) the parties execute an settlement agreement;

 

 

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1        (ii) the parties reach an agreement or proposed plan of
2    readjustment that requires the approval of a bankruptcy
3    judge;
4        (iii) the neutral evaluation process has exceeded 60
5    days after the date the neutral evaluator was selected, the
6    parties have not reached an agreement, and neither the
7    local public entity or a majority of the interested parties
8    elect to extend the neutral evaluation process past the
9    initial 60-day time period;
10        (iv) the local public entity initiated the neutral
11    evaluation process pursuant to subsection (a) of this
12    Section and received no responses from interested parties
13    within the time specified in subsection (b) of this
14    Section; or
15    (v) the fiscal condition of the local public entity
16    deteriorates to the point that a fiscal emergency is
17    declared pursuant to Section 20 of this Act and
18    necessitates the need to file a petition and exercise
19    powers pursuant to applicable federal bankruptcy law.     
 
20    Section 20. Declaration of fiscal emergency.
21Notwithstanding any other Section of this Act, a local public
22entity may file a petition and exercise powers pursuant to
23applicable federal bankruptcy law, if the local public entity
24declares a fiscal emergency and adopts a resolution by a
25majority vote of the governing board at a noticed public

 

 

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1hearing that includes findings that the financial state of the
2local public entity jeopardizes the health, safety, or
3well-being of the residents of the local public entity's
4jurisdiction or service area absent the protections of Chapter
59. The resolution shall make findings that the public entity is
6or will be unable to pay its obligations within the next 60
7days. Prior to a declaration of fiscal emergency and adoption
8of a resolution, the local public entity shall place an item on
9the agenda of a noticed public hearing on the fiscal condition
10of the entity to take public comment. The board of supervisors
11of a county that intends to take action pursuant to this
12Section and places a notice on an agenda regarding a proposed
13resolution to declare a fiscal emergency may require local
14agencies with funds invested in the county treasury to provide
15a 5-day notice of withdrawal before the county is required to
16comply with a request for withdrawal of funds by that local
17agency.
 
18    Section 25. Liabilities. This Act shall not impose any
19liability or responsibility, in law or equity, upon the State,
20any department, agency, or other entity of the State, or any
21officer or employee of the State, for any action taken by any
22local public entity pursuant to this Act, for any violation of
23the provisions of this Act by any local public entity, or for
24any failure to comply with the provisions of this Act by any
25local public entity. No cause of action against the State, or

 

 

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1any department, agency, entity of the State, or any officer or
2employee of the State acting in their official capacity may be
3maintained for any activity authorized by this Act, or for the
4act of a local public entity filing under Chapter 9 of Title 11
5of the United States Code, including any proceeding following a
6local public entity's filing.
 
7    Section 30. Public access; meetings and information. Any
8meetings or writings made pursuant to this Act are prohibited
9from being disclosed to the public.
 
10    Section 35. Statutory lien for bonds.
11    (a) As used in this Section:
12    "Bond" or "bonds" has the same meaning given to that term
13under Section 3 of the Local Government Debt Reform Act.
14    "Governmental unit" has the same meaning given to that term
15under Section 3 of the Local Government Debt Reform Act.
16    "Statutory lien" shall have the meaning given to that term
17under 11 U.S.C. 101(53) of the Federal Bankruptcy Code.
18    (b) All bonds, including general obligation bonds and
19revenue bonds issued and sold under the Local Government Debt
20Reform Act or related laws, including bonds issued under home
21rule powers, issued by a governmental unit shall be secured by
22a statutory lien on all revenues received pursuant to the levy
23and collection of tax or the collection or deposit of money,
24funds, or revenues so pledged to the payment of the bonds. The

 

 

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1statutory lien shall automatically attach from the time such
2pledge is made without further action or authorization by the
3governing authority of the governmental unit. The statutory
4lien shall be valid and binding from the time the bonds are
5executed and delivered without any physical delivery thereof or
6further act required, and shall be a first priority lien,
7unless the bonds so otherwise provide, and the taxes, funds,
8revenues, and moneys so pledged shall not be used for other
9purposes until the bonds are paid in full.
10    The revenues received pursuant to the levy and collection
11of the taxes or the collection or deposit of revenues, money,
12or funds so pledged shall be immediately subject to the
13statutory lien, and the statutory lien shall automatically
14attach to the revenues and be effective, binding, and
15enforceable against the governmental unit or its successors,
16transferees, and creditors, and all others asserting rights
17therein or having claims of any kind in tort, contract, or
18otherwise against the governmental unit, irrespective of
19whether those parties have notice of the lien and without the
20need for any physical delivery, recordation, filing, or further
21act. In addition, revenue bonds issued by a governmental unit
22under the Local Government Debt Reform Act or related laws,
23including bonds issued by governmental unit with home rule
24authority, shall have all of the protection afforded to special
25revenue under 11 U.S.C. 901 et. seq., of the Federal Bankruptcy
26Code.
 

 

 

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1    Section 80. The Open Meetings Act is amended by changing
2Section 2 as follows:
 
3    (5 ILCS 120/2)  (from Ch. 102, par. 42)
4    Sec. 2. Open meetings.
5    (a) Openness required. All meetings of public bodies shall
6be open to the public unless excepted in subsection (c) and
7closed in accordance with Section 2a.
8    (b) Construction of exceptions. The exceptions contained
9in subsection (c) are in derogation of the requirement that
10public bodies meet in the open, and therefore, the exceptions
11are to be strictly construed, extending only to subjects
12clearly within their scope. The exceptions authorize but do not
13require the holding of a closed meeting to discuss a subject
14included within an enumerated exception.
15    (c) Exceptions. A public body may hold closed meetings to
16consider the following subjects:
17        (1) The appointment, employment, compensation,
18    discipline, performance, or dismissal of specific
19    employees of the public body or legal counsel for the
20    public body, including hearing testimony on a complaint
21    lodged against an employee of the public body or against
22    legal counsel for the public body to determine its
23    validity.
24        (2) Collective negotiating matters between the public

 

 

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1    body and its employees or their representatives, or
2    deliberations concerning salary schedules for one or more
3    classes of employees.
4        (3) The selection of a person to fill a public office,
5    as defined in this Act, including a vacancy in a public
6    office, when the public body is given power to appoint
7    under law or ordinance, or the discipline, performance or
8    removal of the occupant of a public office, when the public
9    body is given power to remove the occupant under law or
10    ordinance.
11        (4) Evidence or testimony presented in open hearing, or
12    in closed hearing where specifically authorized by law, to
13    a quasi-adjudicative body, as defined in this Act, provided
14    that the body prepares and makes available for public
15    inspection a written decision setting forth its
16    determinative reasoning.
17        (5) The purchase or lease of real property for the use
18    of the public body, including meetings held for the purpose
19    of discussing whether a particular parcel should be
20    acquired.
21        (6) The setting of a price for sale or lease of
22    property owned by the public body.
23        (7) The sale or purchase of securities, investments, or
24    investment contracts. This exception shall not apply to the
25    investment of assets or income of funds deposited into the
26    Illinois Prepaid Tuition Trust Fund.

 

 

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

 

 

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

 

 

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1        (20) The classification and discussion of matters
2    classified as confidential or continued confidential by
3    the State Government Suggestion Award Board.
4        (21) Discussion of minutes of meetings lawfully closed
5    under this Act, whether for purposes of approval by the
6    body of the minutes or semi-annual review of the minutes as
7    mandated by Section 2.06.
8        (22) Deliberations for decisions of the State
9    Emergency Medical Services Disciplinary Review Board.
10        (23) The operation by a municipality of a municipal
11    utility or the operation of a municipal power agency or
12    municipal natural gas agency when the discussion involves
13    (i) contracts relating to the purchase, sale, or delivery
14    of electricity or natural gas or (ii) the results or
15    conclusions of load forecast studies.
16        (24) Meetings of a residential health care facility
17    resident sexual assault and death review team or the
18    Executive Council under the Abuse Prevention Review Team
19    Act.
20        (25) Meetings of an independent team of experts under
21    Brian's Law.
22        (26) Meetings of a mortality review team appointed
23    under the Department of Juvenile Justice Mortality Review
24    Team Act.
25        (27) (Blank).
26        (28) Correspondence and records (i) that may not be

 

 

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1    disclosed under Section 11-9 of the Public Aid Code or (ii)
2    that pertain to appeals under Section 11-8 of the Public
3    Aid Code.
4        (29) Meetings between internal or external auditors
5    and governmental audit committees, finance committees, and
6    their equivalents, when the discussion involves internal
7    control weaknesses, identification of potential fraud risk
8    areas, known or suspected frauds, and fraud interviews
9    conducted in accordance with generally accepted auditing
10    standards of the United States of America.
11        (30) Those meetings or portions of meetings of a
12    fatality review team or the Illinois Fatality Review Team
13    Advisory Council during which a review of the death of an
14    eligible adult in which abuse or neglect is suspected,
15    alleged, or substantiated is conducted pursuant to Section
16    15 of the Adult Protective Services Act.
17        (31) Meetings and deliberations for decisions of the
18    Concealed Carry Licensing Review Board under the Firearm
19    Concealed Carry Act.
20        (32) Meetings between the Regional Transportation
21    Authority Board and its Service Boards when the discussion
22    involves review by the Regional Transportation Authority
23    Board of employment contracts under Section 28d of the
24    Metropolitan Transit Authority Act and Sections 3A.18 and
25    3B.26 of the Regional Transportation Authority Act.
26        (33) Meetings held pursuant to the Local Government

 

 

09900HB1605ham001- 23 -LRB099 06515 JLK 34500 a

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. 97-318, eff. 1-1-12; 97-333, eff. 8-12-11;
2697-452, eff. 8-19-11; 97-813, eff. 7-13-12; 97-876, eff.

 

 

09900HB1605ham001- 24 -LRB099 06515 JLK 34500 a

18-1-12; 98-49, eff. 7-1-13; 98-63, eff. 7-9-13; 98-756, eff.
27-16-14; 98-1027, eff. 1-1-15; 98-1039, eff. 8-25-14; revised
310-1-14.)
 
4    Section 85. The Freedom of Information Act is amended by
5changing Section 7.5 as follows:
 
6    (5 ILCS 140/7.5)
7    Sec. 7.5. Statutory exemptions Exemptions. To the extent
8provided for by the statutes referenced below, the following
9shall be exempt from inspection and copying:
10        (a) All information determined to be confidential
11    under Section 4002 of the Technology Advancement and
12    Development Act.
13        (b) Library circulation and order records identifying
14    library users with specific materials under the Library
15    Records Confidentiality Act.
16        (c) Applications, related documents, and medical
17    records received by the Experimental Organ Transplantation
18    Procedures Board and any and all documents or other records
19    prepared by the Experimental Organ Transplantation
20    Procedures Board or its staff relating to applications it
21    has received.
22        (d) Information and records held by the Department of
23    Public Health and its authorized representatives relating
24    to known or suspected cases of sexually transmissible

 

 

09900HB1605ham001- 25 -LRB099 06515 JLK 34500 a

1    disease or any information the disclosure of which is
2    restricted under the Illinois Sexually Transmissible
3    Disease Control Act.
4        (e) Information the disclosure of which is exempted
5    under Section 30 of the Radon Industry Licensing Act.
6        (f) Firm performance evaluations under Section 55 of
7    the Architectural, Engineering, and Land Surveying
8    Qualifications Based Selection Act.
9        (g) Information the disclosure of which is restricted
10    and exempted under Section 50 of the Illinois Prepaid
11    Tuition Act.
12        (h) Information the disclosure of which is exempted
13    under the State Officials and Employees Ethics Act, and
14    records of any lawfully created State or local inspector
15    general's office that would be exempt if created or
16    obtained by an Executive Inspector General's office under
17    that Act.
18        (i) Information contained in a local emergency energy
19    plan submitted to a municipality in accordance with a local
20    emergency energy plan ordinance that is adopted under
21    Section 11-21.5-5 of the Illinois Municipal Code.
22        (j) Information and data concerning the distribution
23    of surcharge moneys collected and remitted by wireless
24    carriers under the Wireless Emergency Telephone Safety
25    Act.
26        (k) Law enforcement officer identification information

 

 

09900HB1605ham001- 26 -LRB099 06515 JLK 34500 a

1    or driver identification information compiled by a law
2    enforcement agency or the Department of Transportation
3    under Section 11-212 of the Illinois Vehicle Code.
4        (l) Records and information provided to a residential
5    health care facility resident sexual assault and death
6    review team or the Executive Council under the Abuse
7    Prevention Review Team Act.
8        (m) Information provided to the predatory lending
9    database created pursuant to Article 3 of the Residential
10    Real Property Disclosure Act, except to the extent
11    authorized under that Article.
12        (n) Defense budgets and petitions for certification of
13    compensation and expenses for court appointed trial
14    counsel as provided under Sections 10 and 15 of the Capital
15    Crimes Litigation Act. This subsection (n) shall apply
16    until the conclusion of the trial of the case, even if the
17    prosecution chooses not to pursue the death penalty prior
18    to trial or sentencing.
19        (o) Information that is prohibited from being
20    disclosed under Section 4 of the Illinois Health and
21    Hazardous Substances Registry Act.
22        (p) Security portions of system safety program plans,
23    investigation reports, surveys, schedules, lists, data, or
24    information compiled, collected, or prepared by or for the
25    Regional Transportation Authority under Section 2.11 of
26    the Regional Transportation Authority Act or the St. Clair

 

 

09900HB1605ham001- 27 -LRB099 06515 JLK 34500 a

1    County Transit District under the Bi-State Transit Safety
2    Act.
3        (q) Information prohibited from being disclosed by the
4    Personnel Records Review Act.
5        (r) Information prohibited from being disclosed by the
6    Illinois School Student Records Act.
7        (s) Information the disclosure of which is restricted
8    under Section 5-108 of the Public Utilities Act.
9        (t) All identified or deidentified health information
10    in the form of health data or medical records contained in,
11    stored in, submitted to, transferred by, or released from
12    the Illinois Health Information Exchange, and identified
13    or deidentified health information in the form of health
14    data and medical records of the Illinois Health Information
15    Exchange in the possession of the Illinois Health
16    Information Exchange Authority due to its administration
17    of the Illinois Health Information Exchange. The terms
18    "identified" and "deidentified" shall be given the same
19    meaning as in the Health Insurance Accountability and
20    Portability Act of 1996, Public Law 104-191, or any
21    subsequent amendments thereto, and any regulations
22    promulgated thereunder.
23        (u) Records and information provided to an independent
24    team of experts under Brian's Law.
25        (v) Names and information of people who have applied
26    for or received Firearm Owner's Identification Cards under

 

 

09900HB1605ham001- 28 -LRB099 06515 JLK 34500 a

1    the Firearm Owners Identification Card Act or applied for
2    or received a concealed carry license under the Firearm
3    Concealed Carry Act, unless otherwise authorized by the
4    Firearm Concealed Carry Act; and databases under the
5    Firearm Concealed Carry Act, records of the Concealed Carry
6    Licensing Review Board under the Firearm Concealed Carry
7    Act, and law enforcement agency objections under the
8    Firearm Concealed Carry Act.
9        (w) Personally identifiable information which is
10    exempted from disclosure under subsection (g) of Section
11    19.1 of the Toll Highway Act.
12        (x) Information which is exempted from disclosure
13    under Section 5-1014.3 of the Counties Code or Section
14    8-11-21 of the Illinois Municipal Code.
15        (y) Confidential information under the Adult
16    Protective Services Act and its predecessor enabling
17    statute, the Elder Abuse and Neglect Act, including
18    information about the identity and administrative finding
19    against any caregiver of a verified and substantiated
20    decision of abuse, neglect, or financial exploitation of an
21    eligible adult maintained in the Registry established
22    under Section 7.5 of the Adult Protective Services Act.
23        (z) Records and information provided to a fatality
24    review team or the Illinois Fatality Review Team Advisory
25    Council under Section 15 of the Adult Protective Services
26    Act.

 

 

09900HB1605ham001- 29 -LRB099 06515 JLK 34500 a

1        (aa) Information which is exempted from disclosure
2    under Section 2.37 of the Wildlife Code.
3        (bb) All records and information prohibited from being
4    disclosed by the Local Government Bankruptcy Neutral
5    Evaluation Act.
6(Source: P.A. 97-80, eff. 7-5-11; 97-333, eff. 8-12-11; 97-342,
7eff. 8-12-11; 97-813, eff. 7-13-12; 97-976, eff. 1-1-13; 98-49,
8eff. 7-1-13; 98-63, eff. 7-9-13; 98-756, eff. 7-16-14; 98-1039,
9eff. 8-25-14; 98-1045, eff. 8-25-14; revised 10-1-14.)".