103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5838

 

Introduced 5/8/2024, by Rep. Fred Crespo

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 105/5.1015 new
70 ILCS 3205/8  from Ch. 85, par. 6008
70 ILCS 3205/9  from Ch. 85, par. 6009

    Amends the Illinois Sports Facilities Authority Act. Creates the Illinois Minor League Stadium Fund as a special fund in the State treasury. Allows moneys in the Fund to be used by the Illinois Sports Facilities Authority for capital improvements at facilities that host professional sporting events for teams that are not in the National Basketball Association, National Football League, National Hockey League, or Major League Baseball. If new stadiums or arenas for Illinois teams in the National Basketball Association, National Football League, National Hockey League, or Major League Baseball are approved by the Authority, requires the Authority to include, in the final agreement for those facilities, funding for the Illinois Minor League Stadium Fund for stadiums and arenas that do not host professional sporting events for teams that play in the National Football League, the National Hockey League, National Basketball Association, or Major League Baseball. Amends the State Finance Act to make a conforming change. Effective July 1, 2024.


LRB103 40544 AWJ 73069 b

 

 

A BILL FOR

 

HB5838LRB103 40544 AWJ 73069 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Finance Act is amended by adding
5Section 5.1015 as follows:
 
6    (30 ILCS 105/5.1015 new)
7    Sec. 5.1015. The Illinois Minor League Stadium Fund.
 
8    Section 10. The Illinois Sports Facilities Authority Act
9is amended by changing Sections 8 and 9 as follows:
 
10    (70 ILCS 3205/8)  (from Ch. 85, par. 6008)
11    Sec. 8. Powers. In addition to the powers set forth
12elsewhere in this Act, the Authority may:
13        (1) Adopt and alter an official seal;
14        (2) Sue and be sued, plead and be impleaded, all in its
15    own name, and agree to binding arbitration of any dispute
16    to which it is a party;
17        (3) Adopt bylaws, rules, and regulations to carry out
18    the provisions of this Section;
19        (4) Maintain an office or offices at such place as the
20    Authority may designate;
21        (5) Employ, either as regular employees or independent

 

 

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1    contractors, consultants, engineers, architects,
2    accountants, attorneys, financial experts, construction
3    experts and personnel, superintendents, managers and other
4    professional personnel, and such other personnel as may be
5    necessary in the judgment of the Authority, and fix their
6    compensation;
7        (6) Determine the locations of, develop, design,
8    establish, construct, erect, acquire, own, repair,
9    reconstruct, renovate, remodel, add to, extend, improve,
10    equip, operate, regulate and maintain facilities, and
11    provide financial assistance to governmental owners or
12    their tenants, or both, pursuant to an assistance
13    agreement to do the foregoing, in each case to the extent
14    necessary to accomplish the purposes of the Authority;
15        (7) Acquire, hold, lease as lessor or as lessee, use,
16    encumber, transfer, or dispose of real and personal
17    property, including the alteration of or demolition of
18    improvements to real estate;
19        (8) Enter into contracts of any kind;
20        (9) Regulate the use and operation of facilities that
21    are developed under the provisions of this Act;
22        (10) Enter into one or more management agreements
23    which conform to the requirements of this Act and which
24    may contain such provisions as the Authority shall
25    determine, including, without limitation, (i) provisions
26    allocating receipts from rents, rates, fees and charges

 

 

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1    for use of the facility or for services rendered in
2    connection with the facility between the Authority and the
3    tenant of the facility; (ii) provisions providing for or
4    limiting payments to the Authority for use of the facility
5    based on levels of attendance or receipts, or both
6    attendance and receipts, of the tenant from admission
7    charges, parking concessions, advertising, radio and
8    television and other sources; (iii) provisions obligating
9    the Authority to make payments to the tenant with respect
10    to expenses of routine maintenance and operation of any
11    facility and operating expenses of the tenant with respect
12    to use of the facility; (iv) provisions requiring the
13    Authority to pay liquidated damages to the tenant for
14    failure of timely completion of construction of any new
15    facility; (v) provisions permitting the Authority to grant
16    rent-free occupancy of an existing facility pending
17    completion of construction of any new facility and
18    requiring the Authority to pay certain incremental costs
19    of maintenance, repair, replacement and operation of an
20    existing facility in the event of failure of timely
21    completion of construction of any new facility; (vi)
22    provisions requiring the Authority to reimburse the tenant
23    for certain State and local taxes and provisions
24    permitting reductions of payments due the Authority by the
25    tenant or reimbursement of the tenant by the Authority in
26    the event of imposition of certain new State and local

 

 

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1    taxes, or the increase above specified levels of certain
2    existing State and local taxes, or both; (vii) provisions
3    obligating the Authority to purchase tickets to events
4    conducted by the tenant based upon specified attendance
5    levels; (viii) provisions granting the tenant the right
6    and option to extend the term of the management agreement;
7    (ix) provisions creating an assignment and pledge by the
8    Authority of certain of the Authority's revenues and
9    receipts to be received under Section 19 of this Act for
10    the benefit of the tenant of the facility as further
11    security for performance by the Authority of its
12    obligations under the management agreement; and (x)
13    provisions requiring the establishment of reserves by the
14    Authority or by the tenant, or both, as further security
15    for the performance of their respective obligations under
16    the management agreement;
17        (11) Enter into one or more assistance agreements that
18    conform to the requirements of this Act and that may
19    contain such provisions as the Authority shall determine
20    establishing the rights and obligations of the Authority
21    and the governmental owner or a tenant, or both, with
22    respect to the facility for which the Authority is to
23    provide financial assistance including, without
24    limitation, such provisions as are described in paragraph
25    (10) of this Section;
26        (12) Borrow money from any source for any corporate

 

 

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1    purpose, including working capital for its operations,
2    reserve funds, or interest, and to mortgage, pledge or
3    otherwise encumber the property or funds of the Authority
4    and to contract with or engage the services of any person
5    in connection with any financing, including financial
6    institutions, issuers of letters of credit, or insurers
7    and enter into reimbursement agreements with this person
8    which may be secured as if money were borrowed from the
9    person;
10        (13) Issue bonds or notes under Section 13 of this
11    Act;
12        (14) Receive and accept from any source, private or
13    public, contributions, gifts, or grants of money or
14    property;
15        (15) Make loans from proceeds or funds otherwise
16    available to the extent necessary or appropriate to
17    accomplish the purposes of the Authority;
18        (16) Provide for the insurance of any property,
19    operations, officers, agents or employees of the Authority
20    against any risk or hazard and to provide for the
21    indemnification of its members, employees, contractors or
22    agents against any and all risks;
23        (17) Provide relocation assistance and compensation
24    for landowners and their lessees displaced by any land
25    acquisition of the Authority, including the acquisition of
26    land and construction of replacement housing thereon as

 

 

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1    the Authority shall determine;
2        (18) Sell, convey, lease, or grant a permit or license
3    with respect to, or by agreement authorize another person
4    on its behalf to sell, convey, lease, or grant a permit or
5    license with respect to (A) the right to use or the right
6    to purchase tickets to use, or any other interest in, any
7    seat or area within a facility, (B) the right to name or
8    place advertising in all or any part of a facility, or (C)
9    any intangible personal property rights, including
10    intellectual property rights, appurtenant to any facility,
11    the proceeds of which are used for the purpose of carrying
12    out the powers granted by the Act;
13        (18.5) Provide capital grants from the Illinois Minor
14    League Stadium Fund;
15        (19) Adopt such rules as are necessary to carry out
16    those powers conferred and perform those duties required
17    by this Act;
18        (20) Exercise all the corporate powers granted
19    Illinois corporations under the Business Corporation Act
20    of 1983, except to the extent that powers are inconsistent
21    with those of a body politic and corporate of the State;
22    and
23        (21) Do all things necessary or convenient to carry
24    out the powers granted by this Act.
25    The Authority may not construct or enter into a contract
26to construct more than one new stadium facility and may not

 

 

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1enter into assistance agreements providing for the
2reconstruction, renovation, remodeling, extension, or
3improvement of all or substantially all of more than one
4existing facility unless authorized by law.
5    The Authority may adopt such rules pursuant to the
6Illinois Administrative Procedure Act as are necessary to
7carry out those powers and duties conferred by this Act. The
8Authority may initially adopt, by January 1, 1989, such rules
9as emergency rules in accordance with the provisions of
10Section 5-45 of the Illinois Administrative Procedure Act. For
11purposes of the Illinois Administrative Procedure Act, the
12adoption of the initial rules shall be deemed to be an
13emergency and necessary for the public interest, safety and
14welfare.
15(Source: P.A. 91-935, eff. 6-1-01.)
 
16    (70 ILCS 3205/9)  (from Ch. 85, par. 6009)
17    Sec. 9. Duties. In addition to the powers set forth
18elsewhere in this Act, subject to the terms of any agreements
19with the holders of the Authority's bonds or notes, the
20Authority shall:
21        (1) Comply with all zoning, building, and land use
22    controls of the municipality within which is located any
23    stadium facility owned by the Authority or for which the
24    Authority provides financial assistance.
25        (2) With respect to a facility owned or to be owned by

 

 

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1    the Authority, enter or have entered into a management
2    agreement with a tenant of the Authority to operate the
3    facility that requires the tenant to operate the facility
4    for a period at least as long as the term of any bonds
5    issued to finance the development, establishment,
6    construction, erection, acquisition, repair,
7    reconstruction, remodeling, adding to, extension,
8    improvement, equipping, operation, and maintenance of the
9    facility. Such agreement shall contain appropriate and
10    reasonable provisions with respect to termination, default
11    and legal remedies.
12        (3) With respect to a facility owned or to be owned by
13    a governmental owner other than the Authority, enter into
14    an assistance agreement with either a governmental owner
15    of a facility or its tenant, or both, that requires the
16    tenant, or if the tenant is not a party to the assistance
17    agreement requires the governmental owner to enter into an
18    agreement with the tenant that requires the tenant to use
19    the facility for a period at least as long as the term of
20    any bonds issued to finance the reconstruction,
21    renovation, remodeling, extension or improvement of all or
22    substantially all of the facility.
23        (4) Create and maintain a separate financial reserve
24    for repair and replacement of capital assets of any
25    facility owned by the Authority or for which the Authority
26    provides financial assistance and deposit into this

 

 

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1    reserve not less than $1,000,000 per year for each such
2    facility beginning at such time as the Authority and the
3    tenant, or the Authority and a governmental owner of a
4    facility, as applicable, shall agree.
5        (5) In connection with prequalification of general
6    contractors for the construction of a new stadium facility
7    or the reconstruction, renovation, remodeling, extension,
8    or improvement of all or substantially all of an existing
9    facility, the Authority shall require submission of a
10    commitment detailing how the general contractor will
11    expend 25% or more of the dollar value of the general
12    contract with one or more minority-owned businesses and 5%
13    or more of the dollar value with one or more women-owned
14    businesses. This commitment may be met by contractor's
15    status as a minority-owned businesses or women-owned
16    businesses, by a joint venture or by subcontracting a
17    portion of the work with or by purchasing materials for
18    the work from one or more such businesses, or by any
19    combination thereof. Any contract with the general
20    contractor for construction of the new stadium facility
21    and any contract for the reconstruction, renovation,
22    remodeling, adding to, extension or improvement of all or
23    substantially all of an existing facility shall require
24    the general contractor to meet the foregoing obligations
25    and shall require monthly reporting to the Authority with
26    respect to the status of the implementation of the

 

 

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1    contractor's affirmative action plan and compliance with
2    that plan. This report shall be filed with the General
3    Assembly. The Authority shall establish and maintain an
4    affirmative action program designed to promote equal
5    employment opportunity which specifies the goals and
6    methods for increasing participation by minorities and
7    women in a representative mix of job classifications
8    required to perform the respective contracts. The
9    Authority shall file a report before March 1 of each year
10    with the General Assembly detailing its implementation of
11    this paragraph. The terms "minority-owned businesses",
12    "women-owned businesses", and "business owned by a person
13    with a disability" have the meanings given to those terms
14    in the Business Enterprise for Minorities, Women, and
15    Persons with Disabilities Act.
16        (6) Provide for the construction of any new facility
17    pursuant to one or more contracts which require delivery
18    of a completed facility at a fixed maximum price to be
19    insured or guaranteed by a third party determined by the
20    Authority to be financially capable of causing completion
21    of such construction of the new facility.
22    In connection with any assistance agreement with a
23governmental owner that provides financial assistance for a
24facility to be used by a National Football League team, the
25assistance agreement shall provide that the Authority or its
26agent shall enter into the contract or contracts for the

 

 

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1design and construction services or design/build services for
2such facility and thereafter transfer its rights and
3obligations under the contract or contracts to the
4governmental owner of the facility. In seeking parties to
5provide design and construction services or design/build
6services with respect to such facility, the Authority may use
7such procurement procedures as it may determine, including,
8without limitation, the selection of design professionals and
9construction managers or design/builders as may be required by
10a team that is at risk, in whole or in part, for the cost of
11design and construction of the facility.
12    An assistance agreement may not provide, directly or
13indirectly, for the payment to the Chicago Park District of
14more than a total of $10,000,000 on account of the District's
15loss of property or revenue in connection with the renovation
16of a facility pursuant to the assistance agreement.
17    The Illinois Minor League Stadium Fund is created as a
18special fund in the State treasury. Moneys in the Fund shall be
19used by the Authority for capital improvements at facilities
20that host professional sporting events for teams that are not
21in the National Basketball Association, National Football
22League, National Hockey League, or Major League Baseball. If
23new stadiums or arenas for Illinois teams in the National
24Basketball Association, National Football League, National
25Hockey League, or Major League Baseball are approved by the
26Authority, the Authority shall include, in the final agreement

 

 

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1for those facilities, funding for the Illinois Minor League
2Stadium Fund for stadiums and arenas that do not host
3professional sporting events for teams that play in the
4National Football League, the National Hockey League, National
5Basketball Association, or Major League Baseball.
6(Source: P.A. 100-391, eff. 8-25-17.)
 
7    Section 99. Effective date. This Act takes effect July 1,
82024.