State of Illinois
90th General Assembly
Legislation

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90_SB0234

      50 ILCS 105/3             from Ch. 102, par. 3
      50 ILCS 105/3.2           from Ch. 102, par. 3.2
      70 ILCS 910/13            from Ch. 23, par. 1263
          Amends the Hospital District Law to provide that at least
      one director on a  district  board  may  be  a  member  of  a
      district  hospital  medical staff.  Amends the Public Officer
      Prohibited Activities  Act.   Provides  that  the  provisions
      prohibiting  an  interest  in  contracts  do  not  apply to a
      director on a hospital district board who is a  member  of  a
      district  hospital  medical staff and allows this director to
      have an interest in a hospital district's contract of deposit
      or financial service with a local bank or  savings  and  loan
      association.
                                                     LRB9002102PTcw
                                               LRB9002102PTcw
 1        AN ACT concerning hospital district directors.
 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:
 4        Section 5.  The Public Officer Prohibited Activities  Act
 5    is amended by changing Sections 3 and 3.2 as follows:
 6        (50 ILCS 105/3) (from Ch. 102, par. 3)
 7        Sec. 3. Prohibited interest in contracts.
 8        (a)  No  person holding any office, either by election or
 9    appointment under the laws or constitution of this State, may
10    be in any manner interested, either directly  or  indirectly,
11    in  his  own  name  or  in  the  name  of  any  other person,
12    association, trust, or corporation, in any  contract  or  the
13    performance  of  any  work  in the making or letting of which
14    such officer may be called upon  to  act  or  vote.  No  such
15    officer  may  represent,  either  as  agent or otherwise, any
16    person, association, trust, or corporation, with  respect  to
17    any  application or bid for any contract or work in regard to
18    which such officer may be called upon to vote.  Nor  may  any
19    such  officer  take  or receive, or offer to take or receive,
20    either directly or indirectly, any money or  other  thing  of
21    value  as a gift or bribe or means of influencing his vote or
22    action in his  official  character.  Any  contract  made  and
23    procured in violation hereof is void.  This Section shall not
24    apply   to  any  person  serving  on  an  advisory  panel  or
25    commission or to any director serving on a hospital  district
26    board as provided under subsection (a-5) of Section 13 of the
27    Hospital District Law.
28        (b)  However,  any  elected  or  appointed  member of the
29    governing body may provide materials, merchandise,  property,
30    services, or labor, if:
31             A.  the   contract   is   with   a   person,   firm,
                            -2-                LRB9002102PTcw
 1        partnership,  association,  corporation,  or  cooperative
 2        association  in  which  such  interested  member  of  the
 3        governing body of the municipality has less than a 7 1/2%
 4        share in the ownership; and
 5             B.  such  interested  member  publicly discloses the
 6        nature and extent of his  interest  prior  to  or  during
 7        deliberations   concerning  the  proposed  award  of  the
 8        contract; and
 9             C.  such interested member abstains from  voting  on
10        the  award of the contract, though he shall be considered
11        present for the purposes of establishing a quorum; and
12             D.  such contract is approved by a majority vote  of
13        those members presently holding office; and
14             E.  the contract is awarded after sealed bids to the
15        lowest  responsible  bidder if the amount of the contract
16        exceeds $1500, or awarded without bidding if  the  amount
17        of the contract is less than $1500; and
18             F.  the  award  of  the contract would not cause the
19        aggregate amount of all such contracts so awarded to  the
20        same person, firm, association, partnership, corporation,
21        or  cooperative  association  in  the same fiscal year to
22        exceed $25,000.
23        (c)  In addition to the above exemption, any  elected  or
24    appointed member of the governing body may provide materials,
25    merchandise, property, services, or labor if:
26             A.  the  award  of  the  contract  is  approved by a
27        majority vote of the governing body of  the  municipality
28        provided  that  any  such interested member shall abstain
29        from voting; and
30             B.  the amount  of  the  contract  does  not  exceed
31        $2,000; and
32             C.  the  award  of  the contract would not cause the
33        aggregate amount of all such contracts so awarded to  the
34        same person, firm, association, partnership, corporation,
                            -3-                LRB9002102PTcw
 1        or  cooperative  association  in  the same fiscal year to
 2        exceed $4,000; and
 3             D.  such interested member  publicly  discloses  the
 4        nature  and  extent  of  his  interest prior to or during
 5        deliberations  concerning  the  proposed  award  of   the
 6        contract; and
 7             E.  such  interested  member abstains from voting on
 8        the award of the contract, though he shall be  considered
 9        present for the purposes of establishing a quorum.
10        (d)  A  contract  for  the  procurement of public utility
11    services by a public entity with a public utility company  is
12    not  barred  by  this  Section  by one or more members of the
13    governing body of the  public  entity  being  an  officer  or
14    employee   of  the  public  utility  company  or  holding  an
15    ownership interest of no more  than  7  1/2%  in  the  public
16    utility company, or holding an ownership interest of any size
17    if  the  public entity is a municipality with a population of
18    less than 7,500 and the public utility's rates  are  approved
19    by the Illinois Commerce Commission.  An elected or appointed
20    member of the governing body of the public entity having such
21    an interest shall be deemed not to have a prohibited interest
22    under this Section.
23        (e)  Notwithstanding  any other provision of this Section
24    or any other law to the contrary, until January  1,  1994,  a
25    member   of  the  city  council  of  a  municipality  with  a
26    population under 20,000 may purchase  real  estate  from  the
27    municipality,  at a price of not less than  100% of the value
28    of the real estate as determined by a written  MAI  certified
29    appraisal  or  by  a  written  certified appraisal of a State
30    certified or licensed real estate appraiser, if the  purchase
31    is  approved  by a unanimous vote of the city council members
32    then holding  office  (except  for  the  member  desiring  to
33    purchase   the  real  estate,  who  shall  not  vote  on  the
34    question).
                            -4-                LRB9002102PTcw
 1    (Source: P.A. 87-855; 87-1197.)
 2        (50 ILCS 105/3.2) (from Ch. 102, par. 3.2)
 3        Sec. 3.2. Pecuniary  interest  allowed  in  contracts  of
 4    deposit  and  financial  service with local banks and savings
 5    and  loan  associations.  Nothing  contained  in  this   Act,
 6    including the restrictions set forth in subsections (b), (c),
 7    and (d) of Section 3, shall preclude a contract of deposit of
 8    monies, loans, or other financial services by a unit of local
 9    government,  school  district,  community  college  district,
10    State  university,  or a police or firefighter's pension fund
11    established under Article 3 or 4 of the Illinois Pension Code
12    with a local bank or  local  savings  and  loan  association,
13    regardless  of  whether  a member or members of the governing
14    body of  the  unit  (including  any  director  serving  on  a
15    hospital district board as provided under subsection (a-5) of
16    Section  13  of  the Hospital District Law) are interested in
17    the bank or savings and loan association as  a  director,  an
18    officer, employee, or holder of less than 7 1/2% of the total
19    ownership  interest.   A  member  or  members holding such an
20    interest in such a contract shall not be deemed to be holding
21    a  prohibited  interest  for  purposes  of  this   Act.   The
22    interested  member  or  members  of  the  governing body must
23    publicly state the nature and extent of their interest during
24    deliberations  concerning  the  proposed  award  of  such   a
25    contract,   but   shall   not   participate  in  any  further
26    deliberations concerning the proposed award.  The  interested
27    member  or  members  shall not vote on such a proposed award.
28    Any  member  or  members  abstaining  from  participation  in
29    deliberations and voting under this Section may be considered
30    present for purposes of establishing a quorum. Award of  such
31    a contract shall require approval by a majority vote of those
32    members presently holding office.  Consideration and award of
33    any such contract in which a member or members are interested
                            -5-                LRB9002102PTcw
 1    may  only  be made at a regularly scheduled public meeting of
 2    the governing body of the unit or district.
 3    (Source: P.A. 86-1179; 87-1096.)
 4        Section 10.  The Hospital  District  Law  is  amended  by
 5    changing Section 13 as follows:
 6        (70 ILCS 910/13) (from Ch. 23, par. 1263)
 7        Sec. 13.  Qualification and removal of directors.
 8        (a)   The  qualification  of  individuals to serve on the
 9    board  of  directors  of  any  Hospital  District  shall   be
10    determined  in  accordance  with  Sections  3  and 3.2 of the
11    Public Officer Prohibited Activities Act "An Act  to  prevent
12    fraudulent  and  corrupt practices in the making or accepting
13    of official appointments and contracts by  public  officers",
14    approved April 9, 1872, as amended.
15        (a-5)  Notwithstanding  the provisions of subsection (a),
16    at least one member of the board of directors may be a member
17    of a district hospital medical staff.
18        (b)  Should it appear to the  appointing  authority  that
19    any  member  of the board of directors of a Hospital District
20    may be disqualified, guilty of misconduct or  malfeasance  in
21    office   or  unwilling  or  unable  to  act,  the  appointing
22    authority shall notify the member of that fact in writing and
23    it shall then be the duty of the member to show cause why  he
24    should  not  be removed from office. Any such person shall be
25    given a hearing by the circuit court and, after such hearing,
26    if the circuit court finds such a charge should be sustained,
27    it shall remove the person so  charged  from  office,  and  a
28    vacancy  shall thereupon exist for the unexpired term of such
29    office.
30    (Source: P.A. 84-926.)

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