Illinois General Assembly - Full Text of HB4214
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Full Text of HB4214  99th General Assembly




State of Illinois
2015 and 2016


Introduced , by Rep. Ron Sandack


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 unable to meet its financial obligations. Provides for the selection and qualification of an evaluator, the evaluation process, cessation of an evaluation, declaration of a fiscal emergency, and definition of liabilities. Provides that records prepared for or used in connection with the Local Government Bankruptcy Neutral Evaluation Act are exempt from disclosure. Amends the Open Meetings Act. Provides that a public body may hold closed meetings related to the Local Government Bankruptcy Neutral Evaluation Act. Amends the Freedom of Information Act. Makes conforming changes.

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HB4214LRB099 12314 AWJ 35393 b

1    AN ACT concerning State 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 during any restructuring or financial reorganization
18process. Furthermore, it is in the best interest of the public,
19the State, and local governmental entities that employees,
20trade creditors, bondholders, and other interest-holders be
21included in an appropriate restructuring process and have an
22adequate understanding of the financial capacity of local
23governmental entities and their obligations, as a clear



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



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1efficient as possible for all participants.
2    Illinois taxpayers who rely on public safety, senior,
3recreational, health, library, and other public services, as
4well as those who own and operate businesses in our
5communities, deserve every reasonable and appropriate effort
6that State and local government can make to avoid adverse
7consequences of Chapter 9 bankruptcy filings, particularly
8where a neutral evaluation may lead to the avoidance of Chapter
99 filing by an out-of-court resolution of outstanding
10obligations and disputes.
11    Resolving local and State business and financial issues in
12a timely, fair, and cost-effective manner is an integral part
13of a successful government and is in the public interest. It
14has long been recognized that alternative dispute resolution
15proceedings, like a neutral evaluation, offer an economical,
16discreet, and expeditious way to resolve potentially
17devastating situations.
18    Through the neutral evaluation process, the neutral
19evaluator, a specially trained, neutral third party, can assist
20the local public entity and its creditors and stakeholders to
21fully explore alternatives, while allowing the interested
22parties to exchange information in a confidential environment
23with the assistance and supervision of a neutral evaluator to
24determine whether the entity's contractual and financial
25obligations 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)
4pursuant to Section 15 of this Act, a neutral evaluation
5process has been initiated by the local public entity and has
6ended, or (ii) the local public entity declares a fiscal
7emergency and adopts a resolution by a majority vote of the
8governing board pursuant to 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        A person or entity that has a noncontingent claim
15    against a local public entity that arose at the time of or
16    before the commencement of the neutral evaluation process
17    and whose claim represents at least $5,000,000 or comprises
18    more than 5% of the local public entity's debt or
19    obligations, whichever is less.
20        A person or entity that would have a noncontingent
21    claim against the local public entity upon the rejection of
22    an executory contract or unexpired lease in a Chapter 9
23    case and whose claim would represent at least $5,000,000 or
24    comprises more than 5% of the local public entity's debt or
25    obligations, whichever is less.



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



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1unit of local government, school district, or any other entity
2that is a political subdivision or public agency or
3instrumentality of the State, or that qualifies as a debtor
4under any other federal bankruptcy law applicable to local
5public entities.
6    "Local public entity representative" means the person or
7persons designated by the local public entity with authority to
8make recommendations and to attend the neutral evaluation on
9behalf of the governing body of the local public entity.
10    "Neutral evaluation" is a form of non-binding alternative
11dispute resolution.
12    Section 15. Neutral evaluation process.
13    (a) A local public entity may initiate the neutral
14evaluation process if the local public entity is or likely will
15become unable to meet its financial obligations as and when
16those obligations are due or become due and owing. The local
17public entity shall initiate the neutral evaluation by
18providing notice by certified mail of a request for neutral
19evaluation to interested parties, as defined in Section 10 of
20this Act.
21    (b) Interested parties shall respond within 10 business
22days after receipt of notice of the local public entity's
23request for neutral evaluation.
24    (c) The local public entity and the interested parties
25agreeing to participate in the neutral evaluation shall,



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



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



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



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1documentation and other information that the neutral evaluator
2believes may be helpful in assisting the parties to address the
3obligations between them. This documentation may include the
4status of funds of the local public entity that clearly
5distinguishes between general funds and special funds, and the
6proposed plan of readjustment prepared by the local public
8    (l) The neutral evaluator shall provide counsel and
9guidance to all parties, shall not be a legal representative of
10any party, and shall not have a fiduciary duty to any party.
11    (m) In the event of a settlement with all interested
12parties, the neutral evaluator may assist the parties in
13negotiating a pre-petitioned, pre-agreed plan of readjustment
14in connection with a potential Chapter 9 filing.
15    (n) If at any time during the neutral evaluation process
16the local public entity and a majority of the representatives
17of the interested parties participating in the neutral
18evaluation wish to remove the neutral evaluator, the local
19public entity or any interested party may make a request to the
20other interested parties to remove the neutral evaluator. If
21the local public entity and the majority of the interested
22parties agree that the neutral evaluator should be removed, the
23parties shall select a new neutral evaluator.
24    (o) The local public entity and all interested parties
25participating in the neutral evaluation process shall
26negotiate in good faith. Failure to do so is grounds for ending



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1the neutral evaluation process and satisfying the eligibility
2requirements of item (i) of Section 5 of this Act.
3    (p) The local public entity and interested parties shall
4provide a representative of each party to attend all neutral
5evaluation sessions. Each representative shall have the
6authority to settle and resolve disputes or shall be in a
7position to present any proposed settlement or plan of
8readjustment to the parties participating in the neutral
10    (q) The parties shall maintain the confidentiality of the
11neutral evaluation process and shall not disclose statements
12made, information disclosed, or documents prepared or
13produced, during the neutral evaluation process, at the
14conclusion of the neutral evaluation process or during any
15bankruptcy proceeding unless either of the following occur:
16        (i) all persons that conduct or otherwise participate
17    in the neutral evaluation expressly agree in writing to
18    disclosure of the communication, document, or writing; or
19        (ii) the information is deemed necessary by a judge
20    presiding over a bankruptcy proceeding pursuant to Chapter
21    9 of Title 11 of the United States Code to determine
22    eligibility of a local public entity to proceed with a
23    bankruptcy proceeding pursuant to subsection (c) of
24    Section 109 of Title 11 of the United States Code.
25    (r) The neutral evaluation established by this process
26shall not last for more than 60 days after the date the



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1evaluator is selected, unless the local public entity or a
2majority of participating interested parties elect to extend
3the process for up to 30 additional days. The neutral
4evaluation process shall not last for more than 90 days after
5the date the evaluator is selected unless the local public
6entity and a majority of the interested parties agree to an
8    (s) The local public entity shall pay 50% of the costs of
9neutral evaluation, including but not limited to the fees of
10the evaluator, and the creditors shall pay the balance, unless
11otherwise agreed to by the parties.
12    (t) The neutral evaluation process shall end if any of the
13following occur:
14        (i) the parties execute an settlement agreement;
15        (ii) the parties reach an agreement or proposed plan of
16    readjustment that requires the approval of a bankruptcy
17    judge;
18        (iii) the neutral evaluation process has exceeded the
19    later of (i) 60 days after the date the neutral evaluator
20    was selected, or (ii) 90 days after the initiation of the
21    neutral evaluation process by the local public entity
22    pursuant to subsection (a) of Section 15 of this Act, the
23    parties have not reached an agreement, and the local public
24    entity and a majority of the interested parties do not
25    agree to extend the neutral evaluation process;
26        (iv) the local public entity initiated the neutral



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1    evaluation process pursuant to subsection (a) of this
2    Section and received no responses from interested parties
3    within the time specified in subsection (b) of this
4    Section; or
5    (v) the fiscal condition of the local public entity
6    deteriorates to the point that a fiscal emergency is
7    declared pursuant to Section 20 of this Act and
8    necessitates the need to file a petition and exercise
9    powers pursuant to applicable federal bankruptcy law.     
10    Section 20. Declaration of fiscal emergency.
11Notwithstanding any other Section of this Act, a local public
12entity may file a petition and exercise powers pursuant to
13applicable federal bankruptcy law, if the local public entity
14declares a fiscal emergency and adopts a resolution by a
15majority vote of the governing board at a noticed public
16hearing that includes findings that the financial state of the
17local public entity jeopardizes the health, safety, or
18well-being of the residents of the local public entity's
19jurisdiction or service area absent the protections of Chapter
209. The resolution shall make findings that the public entity is
21or will be unable to pay its obligations within the next 60
22days. Prior to a declaration of fiscal emergency and adoption
23of a resolution, the local public entity shall place an item on
24the agenda of a noticed public hearing on the fiscal condition
25of the entity to take public comment. The board of supervisors



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1of a county that intends to take action pursuant to this
2Section and places a notice on an agenda regarding a proposed
3resolution to declare a fiscal emergency may require local
4agencies with funds invested in the county treasury to provide
5a 5-day notice of withdrawal before the county is required to
6comply with a request for withdrawal of funds by that local
8    Section 25. Liabilities. This Act shall not impose any
9liability or responsibility, in law or equity, upon the State,
10any department, agency, or other entity of the State, or any
11officer or employee of the State, for any action taken by any
12local public entity pursuant to this Act, for any violation of
13the provisions of this Act by any local public entity, or for
14any failure to comply with the provisions of this Act by any
15local public entity. No cause of action against the State, or
16any department, agency, entity of the State, or any officer or
17employee of the State acting in their official capacity may be
18maintained for any activity authorized by this Act, or for the
19act of a local public entity filing under Chapter 9 of Title 11
20of the United States Code, including any proceeding following a
21local public entity's filing.
22    Section 30. Confidential Information. All records,
23including without limitation all reports, writings, letters,
24memoranda, and other documentary materials, that are prepared



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1for or used in connection with the neutral evaluation process,
2the filing of a federal bankruptcy petition, or other actions
3taken by a local public entity or a neutral evaluator under
4this Act are exempt from disclosure, inspection, and copying
5under the Freedom of Information Act.
6    Section 35. Statutory lien for bonds.
7    (a) As used in this Section:
8    "Bond" or "bonds" has the same meaning given to that term
9under Section 3 of the Local Government Debt Reform Act.
10    "Statutory lien" shall have the meaning given to that term
11under 11 U.S.C. 101(53) of the Federal Bankruptcy Code.
12    (b) All bonds, including general obligation bonds and
13revenue bonds issued and sold under the Local Government Debt
14Reform Act or related laws, including bonds issued under home
15rule powers, issued by a local public entity shall be secured
16by a statutory lien on all revenues received pursuant to the
17levy and collection of tax or the collection or deposit of
18money, funds, or revenues so pledged to the payment of the
19bonds. The statutory lien shall automatically attach from the
20time such pledge is made without further action or
21authorization by the governing authority of the local public
22entity. The statutory lien shall be valid and binding from the
23time the bonds are executed and delivered without any physical
24delivery thereof or further act required, and shall be a first
25priority lien, unless the bonds so otherwise provide.



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1    The revenues received pursuant to the levy and collection
2of the taxes or the collection or deposit of revenues, money,
3or funds so pledged shall be immediately subject to the
4statutory lien, and the statutory lien shall automatically
5attach to the revenues and be effective, binding, and
6enforceable against the local public entity or its successors,
7transferees, and creditors, and all others asserting rights
8therein or having claims of any kind in tort, contract, or
9otherwise against the local public entity, irrespective of
10whether those parties have notice of the lien and without the
11need for any physical delivery, recordation, filing, or further
12act. In addition, revenue bonds issued by a local public entity
13under the Local Government Debt Reform Act or related laws,
14including bonds issued by a local public entity with home rule
15authority, shall have all of the protection afforded to special
16revenue under 11 U.S.C. 901 et. seq., of the Federal Bankruptcy
17Code, to the extent applicable.
18    Section 80. The Open Meetings Act is amended by changing
19Section 2 as follows:
20    (5 ILCS 120/2)  (from Ch. 102, par. 42)
21    Sec. 2. Open meetings.
22    (a) Openness required. All meetings of public bodies shall
23be open to the public unless excepted in subsection (c) and
24closed in accordance with Section 2a.



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1    (b) Construction of exceptions. The exceptions contained
2in subsection (c) are in derogation of the requirement that
3public bodies meet in the open, and therefore, the exceptions
4are to be strictly construed, extending only to subjects
5clearly within their scope. The exceptions authorize but do not
6require the holding of a closed meeting to discuss a subject
7included within an enumerated exception.
8    (c) Exceptions. A public body may hold closed meetings to
9consider the following subjects:
10        (1) The appointment, employment, compensation,
11    discipline, performance, or dismissal of specific
12    employees of the public body or legal counsel for the
13    public body, including hearing testimony on a complaint
14    lodged against an employee of the public body or against
15    legal counsel for the public body to determine its
16    validity.
17        (2) Collective negotiating matters between the public
18    body and its employees or their representatives, or
19    deliberations concerning salary schedules for one or more
20    classes of employees.
21        (3) The selection of a person to fill a public office,
22    as defined in this Act, including a vacancy in a public
23    office, when the public body is given power to appoint
24    under law or ordinance, or the discipline, performance or
25    removal of the occupant of a public office, when the public
26    body is given power to remove the occupant under law or



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1    ordinance.
2        (4) Evidence or testimony presented in open hearing, or
3    in closed hearing where specifically authorized by law, to
4    a quasi-adjudicative body, as defined in this Act, provided
5    that the body prepares and makes available for public
6    inspection a written decision setting forth its
7    determinative reasoning.
8        (5) The purchase or lease of real property for the use
9    of the public body, including meetings held for the purpose
10    of discussing whether a particular parcel should be
11    acquired.
12        (6) The setting of a price for sale or lease of
13    property owned by the public body.
14        (7) The sale or purchase of securities, investments, or
15    investment contracts. This exception shall not apply to the
16    investment of assets or income of funds deposited into the
17    Illinois Prepaid Tuition Trust Fund.
18        (8) Security procedures and the use of personnel and
19    equipment to respond to an actual, a threatened, or a
20    reasonably potential danger to the safety of employees,
21    students, staff, the public, or public property.
22        (9) Student disciplinary cases.
23        (10) The placement of individual students in special
24    education programs and other matters relating to
25    individual students.
26        (11) Litigation, when an action against, affecting or



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1    on behalf of the particular public body has been filed and
2    is pending before a court or administrative tribunal, or
3    when the public body finds that an action is probable or
4    imminent, in which case the basis for the finding shall be
5    recorded and entered into the minutes of the closed
6    meeting.
7        (12) The establishment of reserves or settlement of
8    claims as provided in the Local Governmental and
9    Governmental Employees Tort Immunity Act, if otherwise the
10    disposition of a claim or potential claim might be
11    prejudiced, or the review or discussion of claims, loss or
12    risk management information, records, data, advice or
13    communications from or with respect to any insurer of the
14    public body or any intergovernmental risk management
15    association or self insurance pool of which the public body
16    is a member.
17        (13) Conciliation of complaints of discrimination in
18    the sale or rental of housing, when closed meetings are
19    authorized by the law or ordinance prescribing fair housing
20    practices and creating a commission or administrative
21    agency for their enforcement.
22        (14) Informant sources, the hiring or assignment of
23    undercover personnel or equipment, or ongoing, prior or
24    future criminal investigations, when discussed by a public
25    body with criminal investigatory responsibilities.
26        (15) Professional ethics or performance when



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1    considered by an advisory body appointed to advise a
2    licensing or regulatory agency on matters germane to the
3    advisory body's field of competence.
4        (16) Self evaluation, practices and procedures or
5    professional ethics, when meeting with a representative of
6    a statewide association of which the public body is a
7    member.
8        (17) The recruitment, credentialing, discipline or
9    formal peer review of physicians or other health care
10    professionals for a hospital, or other institution
11    providing medical care, that is operated by the public
12    body.
13        (18) Deliberations for decisions of the Prisoner
14    Review Board.
15        (19) Review or discussion of applications received
16    under the Experimental Organ Transplantation Procedures
17    Act.
18        (20) The classification and discussion of matters
19    classified as confidential or continued confidential by
20    the State Government Suggestion Award Board.
21        (21) Discussion of minutes of meetings lawfully closed
22    under this Act, whether for purposes of approval by the
23    body of the minutes or semi-annual review of the minutes as
24    mandated by Section 2.06.
25        (22) Deliberations for decisions of the State
26    Emergency Medical Services Disciplinary Review Board.



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1        (23) The operation by a municipality of a municipal
2    utility or the operation of a municipal power agency or
3    municipal natural gas agency when the discussion involves
4    (i) contracts relating to the purchase, sale, or delivery
5    of electricity or natural gas or (ii) the results or
6    conclusions of load forecast studies.
7        (24) Meetings of a residential health care facility
8    resident sexual assault and death review team or the
9    Executive Council under the Abuse Prevention Review Team
10    Act.
11        (25) Meetings of an independent team of experts under
12    Brian's Law.
13        (26) Meetings of a mortality review team appointed
14    under the Department of Juvenile Justice Mortality Review
15    Team Act.
16        (27) (Blank).
17        (28) Correspondence and records (i) that may not be
18    disclosed under Section 11-9 of the Public Aid Code or (ii)
19    that pertain to appeals under Section 11-8 of the Public
20    Aid Code.
21        (29) Meetings between internal or external auditors
22    and governmental audit committees, finance committees, and
23    their equivalents, when the discussion involves internal
24    control weaknesses, identification of potential fraud risk
25    areas, known or suspected frauds, and fraud interviews
26    conducted in accordance with generally accepted auditing



HB4214- 22 -LRB099 12314 AWJ 35393 b

1    standards of the United States of America.
2        (30) Those meetings or portions of meetings of a
3    fatality review team or the Illinois Fatality Review Team
4    Advisory Council during which a review of the death of an
5    eligible adult in which abuse or neglect is suspected,
6    alleged, or substantiated is conducted pursuant to Section
7    15 of the Adult Protective Services Act.
8        (31) Meetings and deliberations for decisions of the
9    Concealed Carry Licensing Review Board under the Firearm
10    Concealed Carry Act.
11        (32) Meetings between the Regional Transportation
12    Authority Board and its Service Boards when the discussion
13    involves review by the Regional Transportation Authority
14    Board of employment contracts under Section 28d of the
15    Metropolitan Transit Authority Act and Sections 3A.18 and
16    3B.26 of the Regional Transportation Authority Act.
17        (33) Deliberations about action taken, or which could
18    be taken, pursuant to the Local Government Bankruptcy
19    Neutral Evaluation Act.
20    (d) Definitions. For purposes of this Section:
21    "Employee" means a person employed by a public body whose
22relationship with the public body constitutes an
23employer-employee relationship under the usual common law
24rules, and who is not an independent contractor.
25    "Public office" means a position created by or under the
26Constitution or laws of this State, the occupant of which is



HB4214- 23 -LRB099 12314 AWJ 35393 b

1charged with the exercise of some portion of the sovereign
2power of this State. The term "public office" shall include
3members of the public body, but it shall not include
4organizational positions filled by members thereof, whether
5established by law or by a public body itself, that exist to
6assist the body in the conduct of its business.
7    "Quasi-adjudicative body" means an administrative body
8charged by law or ordinance with the responsibility to conduct
9hearings, receive evidence or testimony and make
10determinations based thereon, but does not include local
11electoral boards when such bodies are considering petition
13    (e) Final action. No final action may be taken at a closed
14meeting. Final action shall be preceded by a public recital of
15the nature of the matter being considered and other information
16that will inform the public of the business being conducted.
17(Source: P.A. 97-318, eff. 1-1-12; 97-333, eff. 8-12-11;
1897-452, eff. 8-19-11; 97-813, eff. 7-13-12; 97-876, eff.
198-1-12; 98-49, eff. 7-1-13; 98-63, eff. 7-9-13; 98-756, eff.
207-16-14; 98-1027, eff. 1-1-15; 98-1039, eff. 8-25-14; revised
22    Section 85. The Freedom of Information Act is amended by
23changing Section 7.5 as follows:
24    (5 ILCS 140/7.5)



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1    Sec. 7.5. Statutory exemptions Exemptions. To the extent
2provided for by the statutes referenced below, the following
3shall be exempt from inspection and copying:
4        (a) All information determined to be confidential
5    under Section 4002 of the Technology Advancement and
6    Development Act.
7        (b) Library circulation and order records identifying
8    library users with specific materials under the Library
9    Records Confidentiality Act.
10        (c) Applications, related documents, and medical
11    records received by the Experimental Organ Transplantation
12    Procedures Board and any and all documents or other records
13    prepared by the Experimental Organ Transplantation
14    Procedures Board or its staff relating to applications it
15    has received.
16        (d) Information and records held by the Department of
17    Public Health and its authorized representatives relating
18    to known or suspected cases of sexually transmissible
19    disease or any information the disclosure of which is
20    restricted under the Illinois Sexually Transmissible
21    Disease Control Act.
22        (e) Information the disclosure of which is exempted
23    under Section 30 of the Radon Industry Licensing Act.
24        (f) Firm performance evaluations under Section 55 of
25    the Architectural, Engineering, and Land Surveying
26    Qualifications Based Selection Act.



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



HB4214- 26 -LRB099 12314 AWJ 35393 b

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



HB4214- 27 -LRB099 12314 AWJ 35393 b

1        (t) All identified or deidentified health information
2    in the form of health data or medical records contained in,
3    stored in, submitted to, transferred by, or released from
4    the Illinois Health Information Exchange, and identified
5    or deidentified health information in the form of health
6    data and medical records of the Illinois Health Information
7    Exchange in the possession of the Illinois Health
8    Information Exchange Authority due to its administration
9    of the Illinois Health Information Exchange. The terms
10    "identified" and "deidentified" shall be given the same
11    meaning as in the Health Insurance Accountability and
12    Portability Act of 1996, Public Law 104-191, or any
13    subsequent amendments thereto, and any regulations
14    promulgated thereunder.
15        (u) Records and information provided to an independent
16    team of experts under Brian's Law.
17        (v) Names and information of people who have applied
18    for or received Firearm Owner's Identification Cards under
19    the Firearm Owners Identification Card Act or applied for
20    or received a concealed carry license under the Firearm
21    Concealed Carry Act, unless otherwise authorized by the
22    Firearm Concealed Carry Act; and databases under the
23    Firearm Concealed Carry Act, records of the Concealed Carry
24    Licensing Review Board under the Firearm Concealed Carry
25    Act, and law enforcement agency objections under the
26    Firearm Concealed Carry Act.



HB4214- 28 -LRB099 12314 AWJ 35393 b

1        (w) Personally identifiable information which is
2    exempted from disclosure under subsection (g) of Section
3    19.1 of the Toll Highway Act.
4        (x) Information which is exempted from disclosure
5    under Section 5-1014.3 of the Counties Code or Section
6    8-11-21 of the Illinois Municipal Code.
7        (y) Confidential information under the Adult
8    Protective Services Act and its predecessor enabling
9    statute, the Elder Abuse and Neglect Act, including
10    information about the identity and administrative finding
11    against any caregiver of a verified and substantiated
12    decision of abuse, neglect, or financial exploitation of an
13    eligible adult maintained in the Registry established
14    under Section 7.5 of the Adult Protective Services Act.
15        (z) Records and information provided to a fatality
16    review team or the Illinois Fatality Review Team Advisory
17    Council under Section 15 of the Adult Protective Services
18    Act.
19        (aa) Information which is exempted from disclosure
20    under Section 2.37 of the Wildlife Code.
21        (bb) All records and information prohibited from being
22    disclosed, inspected, or copied by the Local Government
23    Bankruptcy Neutral Evaluation Act.
24(Source: P.A. 97-80, eff. 7-5-11; 97-333, eff. 8-12-11; 97-342,
25eff. 8-12-11; 97-813, eff. 7-13-12; 97-976, eff. 1-1-13; 98-49,
26eff. 7-1-13; 98-63, eff. 7-9-13; 98-756, eff. 7-16-14; 98-1039,



HB4214- 29 -LRB099 12314 AWJ 35393 b

1eff. 8-25-14; 98-1045, eff. 8-25-14; revised 10-1-14.)