Sen. James F. Clayborne, Jr.

Filed: 3/14/2011

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 2171

2    AMENDMENT NO. ______. Amend Senate Bill 2171 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Property Tax Code is amended by changing
5Section 15-185 as follows:
 
6    (35 ILCS 200/15-185)
7    Sec. 15-185. Exemption for leaseback property and
8qualified leased property.
9    (a) Notwithstanding anything in this Code to the contrary,
10all property owned by a municipality with a population of over
11500,000 inhabitants, a unit of local government whose
12jurisdiction includes territory located in whole or in part
13within a municipality with a population of over 500,000
14inhabitants, or a municipality with home rule powers that is
15contiguous to a municipality with a population of over 500,000
16inhabitants, or property that as of December 31, 2010 is exempt

 

 

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1from real estate taxes and is owned by a tax-exempt entity,
2shall remain exempt from taxation and any leasehold interest in
3that property shall not be subject to taxation under Section
49-195 if the property is directly or indirectly leased, sold,
5or otherwise transferred to another entity whose property is
6not exempt and immediately thereafter is the subject of a
7leaseback or other agreement that directly or indirectly gives
8the lessee municipality or unit of local government (i) a right
9to use, control, and possess the property either directly or
10through its exempt subsidiary or affiliate or (ii) a right for
11the municipality or unit of local government to require the
12other entity, or the other entity's designee or assignee, to
13use the property in the performance of services for the
14municipality or unit of local government. Property shall no
15longer be exempt under this subsection as of the date when the
16right of the lessee municipality or unit of local government to
17use, control, and possess the property or for the municipality
18or unit of local government to require the performance of
19services is terminated and the lessee municipality or unit of
20local government no longer has any option to purchase or
21otherwise reacquire the interest in the property to the extent
22that such an option or right of reacquisition was part of the
23lease or a provision of the original sale which was transferred
24by the municipality or unit of local government.
25    (b) Notwithstanding anything in this Code to the contrary,
26all property owned by a municipality with a population of over

 

 

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1500,000 inhabitants, a unit of local government whose
2jurisdiction includes territory located in whole or in part
3within a municipality with a population of over 500,000
4inhabitants, or a municipality with home rule powers that is
5contiguous to a municipality with a population of over 500,000
6inhabitants, shall remain exempt from taxation and any
7leasehold interest in that property is not subject to taxation
8under Section 9-195 if the property, including dedicated public
9property, is used by a municipality or other unit of local
10government for the purpose of an airport or parking or for
11waste disposal or processing and is leased for continued use
12for the same purpose to another entity whose property is not
13exempt.
14    For the purposes of this subsection (b), "airport" does not
15include any airport property, as defined under Section 10 of
16the O'Hare Modernization Act.
17    Any transaction described under this subsection must be
18undertaken in accordance with all appropriate federal laws and
19regulations.
20    (c) For purposes of this Section, "municipality" means a
21municipality as defined in Section 1-1-2 of the Illinois
22Municipal Code, and "unit of local government" means a unit of
23local government as defined in Article VII, Section 1 of the
24Constitution of the State of Illinois. The provisions of this
25Section supersede and control over any conflicting provisions
26of this Code.

 

 

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1(Source: P.A. 96-779, eff. 8-28-09.)
 
2    Section 10. The Local Government Facility Lease Act is
3amended by changing Sections 5, 20, 25, 30, 35, and 40 as
4follows:
 
5    (50 ILCS 615/5)
6    Sec. 5. Definitions. As used in this Act:
7    "Covered entity" means a municipality or other unit of
8local government or an entity receiving tax-exempt status
9pursuant to Section 501(c)(3) of the Internal Revenue Code.
10    "Facility property" means property owned or leased by a
11covered entity municipality with a population of over 500,000
12inhabitants, or a unit of local government whose jurisdiction
13includes territory located in whole or in part within a
14municipality with a population of over 500,000 inhabitants,
15that is used by the covered entity municipality or other unit
16of local government for a public purpose the purpose of an
17airport, parking, or waste disposal or processing. "Airport",
18however, does not include any airport property, as defined
19under Section 10 of the O'Hare Modernization Act.
20    "Leased facility property" means facility property that is
21leased or subleased by a covered entity to a private entity for
22continued use for the same public airport, parking, or waste
23disposal or processing purpose as that of the covered entity at
24the time of the lease.

 

 

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1    "Lease" means a lease or sublease between a covered entity
2and a private entity.
3    "Lessee" means the lessee or sublessee in a lease or
4sublease between a covered entity and a private entity.
5    "Lessor" means the lessor or sublessor in a lease or
6sublease between a covered entity and a private entity.
7    "Public purpose" means any project or facility that is
8acquired, constructed, improved, rehabilitated, reconstructed,
9replaced, or maintained by a covered entity and that is
10acquired or undertaken for the benefit of the community.
11"Public purpose" includes, but is not limited to, a hospital or
12any other facility created or established for the purpose of
13providing medical services or treatment, an airport, a parking
14facility, or a waste disposal or processing facility. "Public
15purpose" does not include use for the purpose of any airport
16property, as defined under Section 10 of the O'Hare
17Modernization Act.
18(Source: P.A. 94-750, eff. 5-9-06.)
 
19    (50 ILCS 615/20)
20    Sec. 20. Use of sale or lease proceeds by lessor.
21    (a) With respect to any leased facility property that is
22sold by a covered entity and subsequently leased back by that
23covered entity used for airport purposes, at least 90% of the
24net proceeds of the sale lease shall be expended or obligated
25by the covered entity lessor municipality for:

 

 

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1        (i) the construction and maintenance of infrastructure
2    within the municipality where the property is located;
3        (ii) contributions to pension funds created for
4    municipal employees employed by the lessee of leased
5    facility property or municipal employees within the
6    municipality where the property is located; or
7        (iii) any combination of (i) or (ii).
8    (b) With respect to any leased facility property, at least
990% of the net proceeds of the lease shall be expended or
10obligated by the covered entity for:
11        (i) the construction and maintenance of infrastructure
12    within the municipality where the property is located;
13        (ii) contributions to pension funds created for
14    employees employed by the lessee of leased facility
15    property or municipal employees within the municipality
16    where the property is located; or
17        (iii) any combination of (i) or (ii).
18    (c) (b) The amount of net proceeds expended or obligated
19for item (ii) in subsection (a) may not exceed the amount of
20net proceeds expended or obligated for item (i) in subsection
21(a), and the amount of net proceeds expended or obligated for
22item (ii) in subsection (b) may not exceed the amount of net
23proceeds expended or obligated for item (i) in subsection (b).
24As used in this Section, "net proceeds" means the gross
25proceeds less any debt service payments on, and payments to
26retire, debt that is specifically associated with the facility

 

 

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1property or leased facility property or otherwise required to
2be paid out of the lease proceeds of the sale or lease.
3(Source: P.A. 94-750, eff. 5-9-06.)
 
4    (50 ILCS 615/25)
5    Sec. 25. Project labor agreements for projects funded by
6sale or airport lease proceeds. With respect to the
7construction of public works funded by the proceeds described
8in Section 20 of this Act, where the project has an estimated
9contract value of $500,000 or more, where there has been a
10written determination that the public interest in cost, timely
11and orderly construction, labor stability, and advancement of
12minority-owned and women-owned businesses and minority and
13female employment would be served by a project labor agreement,
14and where not otherwise prohibited by applicable law, the
15covered entity municipality or municipal corporation
16responsible for implementing the project shall in good faith
17negotiate a project labor agreement with labor organizations
18engaged in the construction industry. Any project labor
19agreement shall:
20        (1) set forth effective, immediate, and mutually
21    binding procedures for resolving jurisdictional disputes
22    and grievances arising before completion of work;
23        (2) contain guarantees against strikes, lockouts, or
24    similar actions;
25        (3) ensure a reliable source of skilled and experienced

 

 

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1    labor;
2        (4) further public policy objectives as to improved
3    employment opportunities for minorities and women in the
4    construction industry to the extent permitted by State and
5    federal law;
6        (5) be made binding on all contractors and
7    subcontractors on the public works project through
8    inclusion of appropriate bid specifications in all
9    relevant bid documents; and
10        (6) include such other terms as the parties deem
11    appropriate.
12(Source: P.A. 94-750, eff. 5-9-06.)
 
13    (50 ILCS 615/30)
14    Sec. 30. Labor neutrality and card check procedure
15agreement at the leased facility property. With respect to
16employees assigned to work on the premises of leased facility
17property used for airport purposes and who are not otherwise
18members of an existing bargaining unit cognizable under the
19National Labor Relations Act, and where not otherwise
20prohibited by applicable law, the lessee shall negotiate in
21good faith, with any union that seeks to represent its
22employees, for a labor neutrality and card check procedure
23agreement. The agreement shall apply only to employees actually
24assigned to work on the premises of the leased facility
25property used for airport purposes and shall have no

 

 

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1applicability to employees not so assigned. The agreement shall
2contain provisions accomplishing the following objectives:
3resolution by a third party neutral of disagreements regarding
4bargaining unit scope, inclusions, and exclusions;
5determination of the existence of majority support for a
6bargaining agent by means of a card check procedure; employer
7neutrality; prohibition of coercion or intimidation of
8employees by either the employer or the union; and a
9prohibition on strikes, work stoppages, or picketing for the
10duration of the agreement.
11(Source: P.A. 94-750, eff. 5-9-06.)
 
12    (50 ILCS 615/35)
13    Sec. 35. Wage requirements. In order to protect the wages,
14working conditions, and job opportunities of employees
15employed by the lessee of leased facility property used for
16airport purposes to perform work on the site of the leased
17premises previously performed by employees of the covered
18entity lessor on the site of the leased premises and who were
19in recognized bargaining units at the time of the lease, the
20lessee, and any subcontractor retained by the lessee to perform
21such work on the site of the leased premises, shall be required
22to pay to those employees an amount not less than the economic
23equivalent of the standard of wages and benefits enjoyed by the
24covered entity's lessor's employees who previously performed
25that work. The covered entity lessor shall certify to the

 

 

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1lessee the amount of wages and benefits (or their equivalent)
2as of the time of the lease, and any changes to those amounts
3as they may occur during the term of the lease. All projects at
4the leased facility property used for airport purposes shall be
5considered public works for purposes of the Prevailing Wage
6Act, the Economic Development Area Tax Increment Allocation
7Act, and the Illinois Health Facilities Planning Act.
8(Source: P.A. 94-750, eff. 5-9-06.)
 
9    (50 ILCS 615/40)
10    Sec. 40. Required offers of employment. As part of any
11transaction to lease facility property that is used for airport
12purposes:
13        (1) the lessee must offer employment, under
14    substantially similar terms and conditions, to the
15    employees of the covered entity municipality who are
16    employed, at the time of the lease, with respect to the
17    facility property used for airport purposes; and
18        (2) the covered entity municipality must offer
19    employment in another department, division, or unit of the
20    covered entity municipality, under substantially similar
21    terms and conditions, to employees of the covered entity
22    municipality who are employed, at the time of the lease,
23    with respect to the facility property used for airport
24    purposes.
25(Source: P.A. 94-750, eff. 5-9-06.)".