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Full Text of SB2872
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 1. Short title. This Act may be cited as the Local | | 5 |
| Government Facility Lease Act. | | 6 |
| Section 5. Definitions. As used in this Act: | | 7 |
| "Facility property" means property owned by a municipality | | 8 |
| with a population of over
500,000
inhabitants, or a unit of | | 9 |
| local government whose jurisdiction includes
territory located | | 10 |
| in
whole or in part within a municipality with a population of | | 11 |
| over 500,000
inhabitants,
that is used by the municipality or | | 12 |
| other unit of local government for the purpose of an airport, | | 13 |
| parking, or waste disposal or processing. "Airport", however, | | 14 |
| does not include any airport property, as defined under Section | | 15 |
| 10 of the O'Hare Modernization Act. | | 16 |
| "Leased facility property" means facility property that is | | 17 |
| leased to a private entity for continued use for the same | | 18 |
| airport, parking, or waste disposal or processing purpose. | | 19 |
| Section 10. Compliance with applicable ordinances. Each | | 20 |
| party to whom facility property is leased shall comply with all | | 21 |
| applicable ordinances of the municipality in which the property | | 22 |
| is located governing contracting with minority-owned and | | 23 |
| women-owned businesses and prohibiting discrimination and | | 24 |
| requiring appropriate affirmative action, to the extent | | 25 |
| permitted by law and federal funding restrictions, as if the | | 26 |
| party to whom the property is leased were that municipality. | | 27 |
| Section 15. Limitation on the expansion of airport | | 28 |
| property. Chicago Midway International Airport is facility | | 29 |
| property used for airport purposes under this Act. No runway of | | 30 |
| Chicago Midway International Airport shall be expanded beyond |
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| the territory bounded by 55th Street on the north, Cicero | | 2 |
| Avenue on the east, 63rd Street on the south, and Central | | 3 |
| Avenue on the west, as those avenues and streets are situated | | 4 |
| on the effective date of this Act. | | 5 |
| Section 20. Use of lease proceeds by lessor. | | 6 |
| (a) With respect to any leased facility property used for | | 7 |
| airport purposes, at least 90% of the net proceeds of the lease | | 8 |
| shall be expended or obligated by the lessor municipality for: | | 9 |
| (i) the construction and maintenance of infrastructure | | 10 |
| within the municipality; | | 11 |
| (ii) contributions to pension funds created for | | 12 |
| municipal employees; or | | 13 |
| (iii) any combination of (i) or (ii). | | 14 |
| (b) The amount of net proceeds expended or obligated for | | 15 |
| item (ii) in subsection (a) may not exceed the amount of net | | 16 |
| proceeds expended or obligated for item (i) in subsection (a). | | 17 |
| As used in this Section, "net proceeds" means the gross | | 18 |
| proceeds less any debt service payments on, and payments to | | 19 |
| retire, debt that is specifically associated with the leased | | 20 |
| facility property or otherwise required to be paid out of lease | | 21 |
| proceeds. | | 22 |
| Section 25. Project labor agreements for projects funded by | | 23 |
| airport lease proceeds. With respect to the construction of | | 24 |
| public works funded by the proceeds described in Section 20, | | 25 |
| where the project has an estimated contract value of $500,000 | | 26 |
| or more, where there has been a written determination that the | | 27 |
| public interest in cost, timely and orderly construction, labor | | 28 |
| stability, and advancement of minority-owned and women-owned | | 29 |
| businesses and minority and female employment would be served | | 30 |
| by a project labor agreement, and where not otherwise | | 31 |
| prohibited by applicable law, the municipality or municipal | | 32 |
| corporation responsible for implementing the project shall in | | 33 |
| good faith negotiate a project labor agreement with labor | | 34 |
| organizations engaged in the construction industry. Any |
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| project labor agreement shall: | | 2 |
| (1) set forth effective, immediate, and mutually | | 3 |
| binding procedures for resolving jurisdictional disputes | | 4 |
| and grievances arising before completion of work; | | 5 |
| (2) contain guarantees against strikes, lockouts, or | | 6 |
| similar actions; | | 7 |
| (3) ensure a reliable source of skilled and experienced | | 8 |
| labor; | | 9 |
| (4) further public policy objectives as to improved | | 10 |
| employment opportunities for minorities and women in the | | 11 |
| construction industry to the extent permitted by State and | | 12 |
| federal law; | | 13 |
| (5) be made binding on all contractors and | | 14 |
| subcontractors on the public works project through | | 15 |
| inclusion of appropriate bid specifications in all | | 16 |
| relevant bid documents; and | | 17 |
| (6) include such other terms as the parties deem | | 18 |
| appropriate.
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| Section 30. Labor neutrality and card check procedure | | 20 |
| agreement at the leased property. With respect to employees | | 21 |
| assigned to work on the premises of leased facility property | | 22 |
| used for airport purposes and who are not otherwise members of | | 23 |
| an existing bargaining unit cognizable under the National Labor | | 24 |
| Relations Act, and where not otherwise prohibited by applicable | | 25 |
| law, the lessee shall negotiate in good faith, with any union | | 26 |
| that seeks to represent its employees, for a labor neutrality | | 27 |
| and card check procedure agreement. The agreement shall apply | | 28 |
| only to employees actually assigned to work on the premises of | | 29 |
| the leased facility property used for airport purposes and | | 30 |
| shall have no applicability to employees not so assigned. The | | 31 |
| agreement shall contain provisions accomplishing the following | | 32 |
| objectives: resolution by a third party neutral of | | 33 |
| disagreements regarding bargaining unit scope, inclusions, and | | 34 |
| exclusions; determination of the existence of majority support | | 35 |
| for a bargaining agent by means of a card check procedure; |
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| employer neutrality; prohibition of coercion or intimidation | | 2 |
| of employees by either the employer or the union; and a | | 3 |
| prohibition on strikes, work stoppages, or picketing for the | | 4 |
| duration of the agreement. | | 5 |
| Section 35. Wage requirements. In order to protect the | | 6 |
| wages, working conditions, and job opportunities of employees | | 7 |
| employed by the lessee of leased facility property used for | | 8 |
| airport purposes to perform work on the site of the leased | | 9 |
| premises previously performed by employees of the lessor on the | | 10 |
| site of the leased premises and who were in recognized | | 11 |
| bargaining units at the time of the lease, the lessee, and any | | 12 |
| subcontractor retained by the lessee to perform such work on | | 13 |
| the site of the leased premises, shall be required to pay to | | 14 |
| those employees an amount not less than the economic equivalent | | 15 |
| of the standard of wages and benefits enjoyed by the lessor's | | 16 |
| employees who previously performed that work. The lessor shall | | 17 |
| certify to the lessee the amount of wages and benefits (or | | 18 |
| their equivalent) as of the time of the lease, and any changes | | 19 |
| to those amounts as they may occur during the term of the | | 20 |
| lease. All projects at the leased facility property used for | | 21 |
| airport purposes shall be considered public works for purposes | | 22 |
| of the Prevailing Wage Act. | | 23 |
| Section 40. Required offers of employment. As part of any | | 24 |
| transaction to lease facility property that is used for airport | | 25 |
| purposes: | | 26 |
| (1) the lessee must offer employment, under | | 27 |
| substantially similar terms and conditions, to the | | 28 |
| employees of the municipality who are employed, at the time | | 29 |
| of the lease, with respect to the facility property used | | 30 |
| for airport purposes; and | | 31 |
| (2) the municipality must offer employment in another | | 32 |
| department, division, or unit of the municipality, under | | 33 |
| substantially similar terms and conditions, to employees | | 34 |
| of the municipality who are employed, at the time of the |
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| lease, with respect to the facility property used for | | 2 |
| airport purposes.
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| Section 45. Judicial enforcement. The provisions of this | | 4 |
| Act are judicially enforceable by injunctive relief and an | | 5 |
| award of actual damages. | | 6 |
| Section 50. Home rule preemption; exemption from State | | 7 |
| Mandates Act. | | 8 |
| (a) A home rule unit may not exercise its home rule powers | | 9 |
| and functions in a manner that is inconsistent with this Act. | | 10 |
| This subsection is a limitation under subsection (i) of Section | | 11 |
| 6 of Article VII of the Illinois Constitution on the concurrent | | 12 |
| exercise by home rule units of powers and functions exercised | | 13 |
| by the State. | | 14 |
| (b) Notwithstanding Sections 6 and 8 of the State Mandates | | 15 |
| Act, no reimbursement by the State is required for the | | 16 |
| implementation of any mandate created by this Act. | | 17 |
| Section 900. The Property Tax Code is amended by changing | | 18 |
| Section 15-185 as follows:
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| (35 ILCS 200/15-185)
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| Sec. 15-185. Exemption for leaseback property and | | 21 |
| qualified leased property
Leaseback exemption.
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| (a) Notwithstanding anything in this Code to
the
contrary, | | 23 |
| all property owned by a municipality with a population of over
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| 500,000
inhabitants, or a unit of local government whose | | 25 |
| jurisdiction includes
territory located in
whole or in part | | 26 |
| within a municipality with a population of over 500,000
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| inhabitants,
shall remain exempt from taxation and any | | 28 |
| leasehold interest in that property
shall not be
subject to | | 29 |
| taxation under Section 9-195 if, for the purpose of obtaining
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| financing,
the
property is directly or indirectly leased, sold, | | 31 |
| or otherwise transferred to
another entity
whose property is | | 32 |
| not exempt and immediately thereafter is the subject of a
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| leaseback or
other agreement that directly or indirectly gives | | 2 |
| the municipality or unit of
local
government (i) a right to | | 3 |
| use, control, and possess the property or (ii) a
right to | | 4 |
| require
the other entity, or the other entity's designee or | | 5 |
| assignee, to use the
property in the
performance of services | | 6 |
| for the municipality or unit of local government. Property
The
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| property
shall no longer be exempt under this subsection
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| Section as of the date when the right of
the
municipality or | | 9 |
| unit of local government to use, control, and possess the
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| property or to
require the performance of services is | | 11 |
| terminated and the municipality or unit
of local
government no | | 12 |
| longer has any option to purchase or otherwise reacquire the
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| interest in
the property which was transferred by the | | 14 |
| municipality or unit of local
government.
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| (b) Notwithstanding anything in this Code to
the
contrary, | | 16 |
| all property owned by a municipality with a population of over
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| 500,000
inhabitants, or a unit of local government whose | | 18 |
| jurisdiction includes
territory located in
whole or in part | | 19 |
| within a municipality with a population of over 500,000
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| inhabitants,
shall remain exempt from taxation and any | | 21 |
| leasehold interest in that property
is not
subject to taxation | | 22 |
| under Section 9-195 if the property, including dedicated public | | 23 |
| property, is used by a municipality or other unit of local | | 24 |
| government for the purpose of an airport or parking or for | | 25 |
| waste disposal or processing and is leased for continued use | | 26 |
| for the same purpose to another entity whose property is not | | 27 |
| exempt. | | 28 |
| For the purposes of this subsection (b), "airport" does not | | 29 |
| include any airport property, as defined under Section 10 of | | 30 |
| the O'Hare Modernization Act. | | 31 |
| Any transaction described under this subsection must be | | 32 |
| undertaken in accordance with all appropriate federal laws and | | 33 |
| regulations. | | 34 |
| (c) For purposes of this Section, "municipality" means a | | 35 |
| municipality as defined
in
Section 1-1-2 of the Illinois | | 36 |
| Municipal Code, and "unit of local government"
means a unit
of |
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| local government as defined in Article VII, Section 1 of the | | 2 |
| Constitution of
the State of
Illinois. The provisions of this | | 3 |
| Section supersede and control over any
conflicting
provisions | | 4 |
| of this Code.
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| (Source: P.A. 93-19, eff. 6-20-03.)
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| Section 905. The Illinois Municipal Code is amended by | | 7 |
| adding Section 11-102-15 as follows: | | 8 |
| (65 ILCS 5/11-102-15 new)
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| Sec. 11-102-15. Chicago Midway International Airport; | | 10 |
| application of other Acts. In addition to the provisions of | | 11 |
| this Division 102, Chicago Midway International Airport is | | 12 |
| subject to the provisions of the Local Government Facility | | 13 |
| Lease Act.
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| Section 910. The Prevailing Wage Act is amended by changing | | 15 |
| Section 2 as follows:
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| (820 ILCS 130/2) (from Ch. 48, par. 39s-2)
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| Sec. 2. This Act applies to the wages of laborers, | | 18 |
| mechanics and
other workers employed in any public works, as | | 19 |
| hereinafter defined, by
any public body and to anyone under | | 20 |
| contracts for public works.
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| As used in this Act, unless the context indicates | | 22 |
| otherwise:
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| "Public works" means all fixed works constructed by
any | | 24 |
| public body, other than work done directly by any public | | 25 |
| utility
company, whether or not done under public supervision | | 26 |
| or direction,
or paid for wholly or in part out of public | | 27 |
| funds. "Public works" as
defined herein includes all projects | | 28 |
| financed in whole
or in part with bonds issued under the | | 29 |
| Industrial Project Revenue Bond
Act (Article 11, Division 74 of | | 30 |
| the Illinois Municipal Code), the Industrial
Building Revenue | | 31 |
| Bond Act, the Illinois Finance Authority Act,
the Illinois | | 32 |
| Sports Facilities Authority Act, or the Build Illinois Bond |
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| Act,
and all projects financed in whole or in part with loans | | 2 |
| or other funds made
available pursuant to the Build Illinois | | 3 |
| Act. "Public works" also includes
all projects financed in | | 4 |
| whole or in part with funds from the Fund for
Illinois' Future | | 5 |
| under Section 6z-47 of the State Finance Act, funds for school
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| construction under Section 5 of the General Obligation Bond | | 7 |
| Act, funds
authorized under Section 3 of the School | | 8 |
| Construction Bond Act, funds for
school infrastructure under | | 9 |
| Section 6z-45 of the State Finance Act, and funds
for | | 10 |
| transportation purposes under Section 4 of the General | | 11 |
| Obligation Bond
Act. "Public works" also includes all projects | | 12 |
| financed in whole or in part
with funds from the Department of | | 13 |
| Commerce and Economic Opportunity
Community Affairs under the | | 14 |
| Illinois Renewable Fuels Development Program
Act for which | | 15 |
| there is no project labor agreement. "Public works" also | | 16 |
| includes all projects at leased facility property used for | | 17 |
| airport purposes under Section 35 of the Local Government | | 18 |
| Facility Lease Act.
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| "Construction" means all work on public works involving | | 20 |
| laborers,
workers or mechanics.
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| "Locality" means the county where the physical work upon | | 22 |
| public works
is performed, except (1) that if there is not | | 23 |
| available in the county a
sufficient number of competent | | 24 |
| skilled laborers, workers and mechanics
to construct the public | | 25 |
| works efficiently and properly, "locality"
includes any other | | 26 |
| county nearest the one in which the work or
construction is to | | 27 |
| be performed and from which such persons may be
obtained in | | 28 |
| sufficient numbers to perform the work and (2) that, with
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| respect to contracts for highway work with the Department of
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| Transportation of this State, "locality" may at the discretion | | 31 |
| of the
Secretary of the Department of Transportation be | | 32 |
| construed to include
two or more adjacent counties from which | | 33 |
| workers may be accessible for
work on such construction.
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| "Public body" means the State or any officer, board or | | 35 |
| commission of
the State or any political subdivision or | | 36 |
| department thereof, or any
institution supported in whole or in |
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| part by public funds,
and includes every county, city, town,
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| village, township, school district, irrigation, utility, | | 3 |
| reclamation
improvement or other district and every other | | 4 |
| political subdivision,
district or municipality of the state | | 5 |
| whether such political
subdivision, municipality or district | | 6 |
| operates under a special charter
or not.
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| The terms "general prevailing rate of hourly wages", | | 8 |
| "general
prevailing rate of wages" or "prevailing rate of | | 9 |
| wages" when used in
this Act mean the hourly cash wages plus | | 10 |
| fringe benefits for training and
apprenticeship programs | | 11 |
| approved by the U.S. Department of Labor, Bureau of
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| Apprenticeship and Training, health and welfare, insurance, | | 13 |
| vacations and
pensions paid generally, in the
locality in which | | 14 |
| the work is being performed, to employees engaged in
work of a | | 15 |
| similar character on public works.
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| (Source: P.A. 92-16, eff. 6-28-01; 93-15, eff. 6-11-03; 93-16, | | 17 |
| eff. 1-1-04;
93-205, eff. 1-1-04; revised 1-12-04.)
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| Section 915. The State Mandates Act is amended by adding | | 19 |
| Section 8.30 as follows: | | 20 |
| (30 ILCS 805/8.30 new) | | 21 |
| Sec. 8.30. Exempt mandate. Notwithstanding Sections 6 and 8 | | 22 |
| of this Act, no reimbursement by the State is required for the | | 23 |
| implementation of any mandate created by this amendatory Act of | | 24 |
| the 94th General Assembly.
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| Section 999. Effective date. This Act takes effect upon | | 26 |
| becoming law.
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