IL HB3378

Amends Section 10-9 of the School Code regarding school board member conflicts of interest in contracts with their school district.

Adds new subsection (c-5) allowing board members to provide materials, merchandise, property, services, or labor if they own less than 1% of the contracting entity, publicly disclose their interest, and abstain from voting with board approval.

Adds new subsection (e-5) exempting board members who are employees or own 1% or less in publicly-traded companies doing business with the district, provided they disclose the interest, recuse themselves from participation, and the contract is board-approved.

Expands exemptions for board member ownership interests held through mutual funds or exchange-traded funds (1% or less) in companies conducting business with the district.

Includes grandfather provision allowing pre-existing ownership interests and business transactions that comply with the amended provisions to continue without violation.