INELIGIBILITY TO DO BUSINESS WITH THE CITY (1-23-010 et seq.)

Municipal Code of Chicago tit. 1, ch. 1-23, art. I

in effect

Municipal Code of Chicago § 1-23-010 Definitions.

1-23-010 Definitions. As used in this article: "Action" has the meaning ascribed to the term "city action" set forth in Section 2-154-010, but shall not include city action with respect to real property tax reclassification, zoning, and vacation of streets and alleys. "Business entity" means any firm, sole proprietorship, corporation, partnership, limited partnership, limited liability company, association, business trust, business estate, joint venture or other commercial or legal entity of any type, in its own capacity or as administrator, conservator, guardian, executive, trustee, receiver or other representative appointed by the court. "City" means the City of Chicago. "Controlling person" means any person who (1) is an officer, director, manager, managing member, partner, general partner or limited partner of any business entity; or (2) owns, directly or indirectly through one or more intermediate ownership entities, more than 7.5% of the ownership interest in any business entity; or (3) controls, directly or indirectly through one or more intermediate ownership entities, the day-to-day management of any business entity. Indicia of control shall include, but are not limited to, those indicia of control set forth in subsection (a) of Section 2-92-320. "Doing business" or "do business" means to make application for any action, as defined in this section, that requires the submission of disclosures and information under Section 2-154-010. The term(s) "doing business" or "do business" does not include participation in any city-sponsored public auction or sale of real estate. "Hate crime" means any crime committed on the basis of the victim's perceived or actual race, color, creed, religion, ancestry, gender, gender identity, sexual orientation, physical or mental disability, or national origin of an individual or group of individuals. "Natural person" means any natural individual in his or her own capacity or as administrator, conservator, guardian, executive, trustee, receiver or other representative appointed by the court. "Sister agency" means the Chicago Public Schools, Chicago Park District, Chicago Transit Authority, City Colleges of Chicago, Chicago Housing Authority or Public Building Commission. "Treason, sedition, or related offenses" means treason, misprision of treason, rebellion, insurrection, seditious conspiracy, prohibited civilian military activity, advocating the overthrow of the federal government or any political subdivision thereof, or the use of force or other lawless action to overthrow, or the incitement of others to engage in imminent lawless action to overthrow, the federal government or any political subdivision thereof, or equivalent offenses under any local, state or federal law. (Added Coun. J. 6-30-10, p. 95061, § 1; Amend Coun. J. 9-8-10, p. 99116, § 1; Amend Coun. J. 3-23-22, p. 45580, § 1)

Municipal Code of Chicago § 1-23-020 Ineligibility to do business with the city.

1-23-020 Ineligibility to do business with the city. (a) Ineligibility due to a conviction. No natural person or business entity shall be eligible to do business with the City if such natural person, business entity or any controlling person of such business entity has ever been convicted or in custody, under parole or under any other non-custodial supervision resulting from a conviction in a court of any jurisdiction for the commission of a felony of any kind, or of a criminal offense of whatever degree, involving: (1) bribery or attempted bribery, or its equivalent under any local, state or federal law, of any public officer or employee of the City of Chicago or of any sister agency; or (2) theft, fraud, forgery, perjury, dishonesty or deceit, or attempted theft, fraud, forgery, perjury, dishonesty or deceit, or its equivalent under any local, state or federal law, against the City of Chicago or of any sister agency; or (3) conspiring to engage in any of the acts set forth in items (1) or (2) of this subsection (a); or (4) any hate crime; or (5) treason, sedition, or related offenses. (b) Ineligibility due to an admission of guilt. No natural person or business entity shall be eligible to do business with the City if such natural person or business entity or any controlling person of such business entity has made in any civil or criminal proceeding an admission of guilt of any of the conduct set forth in items (1) through (5), inclusive, of subsection (a) of this section, under circumstances where such admission of guilt is a matter of record but has not resulted in criminal prosecution for such conduct. (c) Ineligibility due to the filing of charges or indictment. No natural person or business entity shall be eligible to do business with the City if such natural person or business entity or any controlling person of such business entity is charged with or indicted for any felony or criminal offense set forth in items (1) through (5), inclusive, of subsection (a) of this section. Such ineligibility shall remain in effect until final adjudication is made with respect to such felony or criminal offense. (d) Ineligibility due to debarment by a government agency. No natural person or business entity shall be eligible to do business with the City if such natural person or business entity or any controlling person of such business entity has been debarred by any local, state or federal government agency from doing business with such government agency, for any reason or offense set forth in subsections (a), (b), or (c) of this section, or substantially equivalent reason or offense, for the duration of the debarment by such government agency. (e) Ineligibility due to removal from public office. No natural person or business entity shall be eligible to do business with the City if such natural person or any controlling person of such business entity has ever been removed from public office. (f) Successor business entities. Notwithstanding anything to the contrary in this section, if a business entity seeking to do business with the City ("the applicant entity") acquires or is merged with a business entity that is ineligible under this section to do business with the City ("the prohibited entity"), such applicant entity shall be eligible to do business with the City if all of the following apply: (1) no controlling person of such applicant entity has made an admission of guilt or been convicted, charged or indicted for any of the criminal conduct forming the basis of the prohibited entity's ineligibility to do business with the City; and (2) no person who was a controlling person of the prohibited entity at the time such criminal conduct occurred is a controlling person of the applicant entity; and (3) all other eligibility requirements of this section have been met by the applicant entity and all controlling persons thereof. (Added Coun. J. 6-30-10, p. 95061, § 1; Amend Coun. J. 10-5-16, p. 33564, § 1; Amend Coun. J. 3-23-22, p. 45580, § 2)

Municipal Code of Chicago § 1-23-030 Duty to maintain eligibility to do business with the city.

1-23-030 Duty to maintain eligibility to do business with the city. Eligibility under Section 1-23-020 to do business with the city shall be a continuing requirement for doing business with the city. (Added Coun. J. 6-30-10, p. 95061, § 1)

Municipal Code of Chicago § 1-23-040 Failure to maintain eligibility to do business with the city.

1-23-040 Failure to maintain eligibility to do business with the city. The failure of any natural person, business entity or controlling person to maintain eligibility to do business with the City in violation of Section 1-23-030 shall render any action, as defined in Section 1-23-010, in behalf of or in any way connected to such natural person, business entity or controlling person voidable or subject to termination or revocation, as applicable, at the option of the Chief Procurement Officer after consultation with the City department or agency involved in such action. Provided, however, that no such action shall be voided, terminated or revoked by the Chief Procurement Officer if, upon written application to the Chief Procurement Officer, the head of the City department or agency involved in such action sets forth facts sufficient in the judgment of the Chief Procurement Officer to establish (1) that the public health, safety or welfare of the City requires such action or the goods or services provided as a result of such action; or (2) that the City is unable to acquire the goods or services provided as a result of such action at comparable price and quality, or in sufficient quantity, from other sources. (Added Coun. J. 6-30-10, p. 95061, § 1; Amend Coun. J. 11-9-16, p. 36266, § 1)

Municipal Code of Chicago § 1-23-050 Rulemaking authority.

1-23-050 Rulemaking authority. The corporation counsel and chief procurement officer are authorized to promulgate rules and regulations necessary to implement the requirements of this article. (Added Coun. J. 6-30-10, p. 95061, § 1; Amend Coun. J. 9-8-10, p. 99116, § 1)

Source: City of Chicago, Municipal Code of Chicago (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2595907Fetched: 10/24/2026