§ 85-45 — Pecuniary interest in contracts

Illinois § 85-45

• Jurisdiction: Illinois
• Topic: GOVERNMENT
• Ch. 60: TOWNSHIPS
• Act 60 ILCS 1/: Township Code.
• Art.: Article 85 - Township Corporate Powers, Generally

Text

(a) Except as provided in this Section, no township officer or employee shall be interested, directly or indirectly, in his or her own name or in the name of any other person, association, trust, or corporation, in any contract for work, materials, profits of work or materials, or services to be furnished or performed for the township or for any person operating a public utility wholly or partly within the territorial limits of the township. (b) Any elected or appointed member of the governing body may provide materials, merchandise, property, services, or labor if: (1) the contract is with a person, firm, partnership, association, corporation, or cooperative association in which the interested member of the governing body of the township has less than a 7 1/2% share in the ownership; and (2) the interested member publicly discloses the nature and extent of his or her interest before or during deliberations concerning the proposed award of the contract; and (3) the interested member abstains from voting on the award of the contract, though he or she shall be considered present for the purposes of establishing a quorum; and (4) the contract is approved by a majority vote of those members presently holding office; and (5) the contract is awarded after sealed bids to the lowest responsible bidder if the amount of the contract exceeds $1,000, or awarded without bidding if the amount of the contract is less than $1,000; and (6) the award of the contract would not cause the aggregate amount of all contracts awarded to the same person, firm, association, partnership, corporation, or cooperative association in the same fiscal year to exceed $25,000. (c) In addition to subsection (b), any elected or appointed member of the governing body may provide materials, merchandise, property, services, or labor if: (1) the award of the contract is approved by a majority vote of the governing body of the township, provided that any interested member shall abstain from voting; and (2) the amount of the contract does not exceed $1,000; and (3) the award of the contract would not cause the aggregate amount of all contracts awarded to the same person, firm, association, partnership, corporation, or cooperative association in the same fiscal year to exceed $1,000; and (4) the interested member publicly discloses the nature and extent of his or her interest before or during deliberations concerning the proposed award of the contract; and (5) the interested member abstains from voting on the award of the contract, though he or she shall be considered present for the purposes of establishing a quorum; and (6) no other vendor is available within a 25-mile radius of the township. (d) A contract for the procurement of public utility services by a township with a public utility company is not barred by this Section by one or more members of the governing body being an officer or employee of the public utility company, holding an ownership interest of no more than 7 1/2% in the public utility company, or holding an ownership interest of any size if the township has a population of less than 7,500 and the public utility's rates are approved by the Illinois Commerce Commission. An elected or appointed member of the governing body having such an interest shall be deemed not to have a prohibited interest under this Section. (e) Any officer who violates this Section is guilty of a Class 4 felony. Any office held by the person so convicted shall become vacant and shall be declared vacant as part of the judgment of the court. (f) Nothing contained in this Section, including the restrictions set forth in subsections (b), (c), and (d), shall preclude a contract of deposit of moneys, loans, or other financial services by a township with a local bank or local savings and loan association, regardless of whether a member or members of the governing body of the township are interested in the bank or savings and loan association as an officer or employee or as a holder of less than 7 1/2% of the total ownership interest. A member or members holding such an interest in a contract shall not be deemed to be holding a prohibited interest for purposes of this Section. The interested member or members of the governing body must publicly state the nature and extent of their interest during deliberations concerning the proposed award of a contract but shall not participate in any further deliberations concerning the proposed award. The interested member or members shall not vote on a proposed award. Any member or members abstaining from participation in deliberations and voting under this Section may be considered present for purposes of establishing a quorum. Award of such a contract shall require approval by a majority vote of those members presently holding office. Consideration and award of any contract in which a member or members are interested may only be made at a regularly scheduled public meeting of the governing body of the township.

Legislative History

(Source: P.A. 89-305, eff. 1-1-96.)