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Full Text of SB1992  97th General Assembly

SB1992ham002 97TH GENERAL ASSEMBLY

Rep. Barbara Flynn Currie

Filed: 11/7/2011

 

 


 

 


 
09700SB1992ham002LRB097 09282 AMC 59621 a

1
AMENDMENT TO SENATE BILL 1992

2    AMENDMENT NO. ______. Amend Senate Bill 1992 by replacing
3everything after the enacting clause with the following:
 
4    "Section 1. Findings; purpose; text and revisory changes;
5validation; additional material.
6    (a) It is the purpose of this Act to reenact the provisions
7of subsection (c) of Section 5.4 of the Metropolitan Pier and
8Exposition Authority Act, which a federal district court found
9to be preempted under federal law on the grounds that it
10regulates issues protected by Section 8 of the National Labor
11Relations Act. Following the court's ruling, the parties to the
12suit resolved their dispute related to the challenged
13provisions. The reenactment of subsection (c) of Section 5.4
14implements, in part, settlement agreements made and entered
15into between the Authority and the plaintiffs that filed suit,
16the Chicago Regional Council of Carpenters and the
17International Brotherhood of Teamsters Local 727. The

 

 

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1agreements were filed with the Secretary of State Index
2Department and designated as 97-GA-A01 and 97-GA-A02,
3respectively.
4    (b) In this Act, the base text of the reenacted Section is
5set forth as it existed at the time of the federal district
6court's decision. Striking and underscoring is used only to
7show the changes being made to that base text. The changes
8being made to this Act are consistent with the settlement
9agreement or declarative of existing law.
 
10    Section 5. The Metropolitan Pier and Exposition Authority
11Act is amended by reenacting and changing Section 5.4 as
12follows:
 
13    (70 ILCS 210/5.4)
14    Sec. 5.4. Exhibitor rights and work rule reforms.
 
15(a) Legislative findings.
16        (1) The Authority is a political subdivision of the
17    State of Illinois subject to the plenary authority of the
18    General Assembly and was created for the benefit of the
19    general public to promote business, industry, commerce,
20    and tourism within the City of Chicago and the State of
21    Illinois.
22        (2) The Authority owns and operates McCormick Place and
23    Navy Pier, which have collectively 2.8 million square feet

 

 

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1    of exhibit hall space, 700,000 square feet of meeting room
2    space.
3        (3) The Authority is a vital economic engine that
4    annually generates 65,000 jobs and $8 billion of economic
5    activity for the State of Illinois through the trade shows,
6    conventions, and other meetings held and attended at
7    McCormick Place and Navy Pier.
8        (4) The Authority supports the operation of McCormick
9    Place and Navy Pier through not only fees on the rental of
10    exhibit and meeting room space, electrical and utility
11    service, food and beverage services, and parking, but also
12    hotel room rates paid by persons staying at the
13    Authority-owned hotel.
14        (5) The Authority has a compelling and proprietary
15    interest in the success, competitiveness, and continued
16    viability of McCormick Place and Navy Pier as the owner and
17    operator of the convention facilities and its obligation to
18    ensure that these facilities produce sufficient operating
19    revenues.
20        (6) The Authority's convention facilities were
21    constructed and renovated through the issuance of public
22    bonds that are directly repaid by State hotel, auto rental,
23    food and beverage, and airport and departure taxes paid
24    principally by persons who attend, work at, exhibit, and
25    provide goods and services to conventions, shows,
26    exhibitions, and meetings at McCormick Place and Navy Pier.

 

 

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1        (7) State law also dedicates State occupation and use
2    tax revenues to fulfill debt service obligations on these
3    bonds should State hotel, auto rental, food and beverage,
4    and airport and departure taxes fail to generate sufficient
5    revenue.
6        (8) Through fiscal year 2010, $55 million in State
7    occupation and use taxes will have been allocated to make
8    debt service payments on the Authority's bonds due to
9    shortfalls in State hotel, auto rental, food and beverage,
10    and airport and departure taxes. These shortfalls are
11    expected to continue in future fiscal years and would
12    require the annual dedication of approximately $40 million
13    in State occupation and use taxes to fulfill debt service
14    payments.
15        (9) In 2009, managers of the International Plastics
16    Showcase announced that 2009 was the last year they would
17    host their exhibition at McCormick Place, as they had since
18    1971, because union labor work rules and electric and food
19    service costs make it uneconomical for the show managers
20    and exhibitors to use McCormick Place as a convention venue
21    as compared to convention facilities in Orlando, Florida
22    and Las Vegas, Nevada. The exhibition used over 740,000
23    square feet of exhibit space, attracted over 43,000
24    attendees, generated $4.8 million of revenues to McCormick
25    Place, and raised over $200,000 in taxes to pay debt
26    service on convention facility bonds.

 

 

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1        (10) After the International Plastics Showcase
2    exhibition announced its departure, other conventions and
3    exhibitions managers and exhibitors also stated that they
4    would not return to McCormick Place and Navy Pier for the
5    same reasons cited by the International Plastics Showcase
6    exhibition. In addition, still other managers and
7    exhibitors stated that they would not select McCormick
8    Place as a convention venue unless the union labor work
9    rules and electrical and food service costs were made
10    competitive with those in Orlando and Las Vegas.
11        (11) The General Assembly created the Joint Committee
12    on the Metropolitan Pier and Exposition Authority to
13    conduct hearings and obtain facts to determine how union
14    labor work rules and electrical and food service costs make
15    McCormick Place and Navy Pier uneconomical as a convention
16    venue.
17        (12) Witness testimony and fact-gathering revealed
18    that while the skilled labor provided by trade unions at
19    McCormick Place and Navy Pier is second to none and is
20    actually "exported" to work on conventions and exhibitions
21    held in Orlando and Las Vegas, restrictive work rules on
22    the activities show exhibitors may perform present
23    exhibitors and show managers with an uninviting atmosphere
24    and result in significantly higher costs than competing
25    convention facilities.
26        (13) Witness testimony and fact-gathering also

 

 

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1    revealed that the mark-up on electrical and food service
2    imposed by the Authority to generate operating revenue for
3    McCormick Place and Navy Pier also substantially increased
4    exhibitor and show organizer costs to the point of excess
5    when compared to competing convention facilities.
6        (14) Witness testimony and fact-gathering further
7    revealed that the additional departure of conventions,
8    exhibitions, and trade shows from Authority facilities
9    threatens the continued economic viability of these
10    facilities and the stability of sufficient tax revenues
11    necessary to support debt service.
12        (15) In order to safeguard the Authority's and State of
13    Illinois' shared compelling and proprietary interests in
14    McCormick Place and Navy Pier and in response to local
15    economic needs, the provisions contained in this Section
16    set forth mandated changes and reforms to restore and
17    ensure that (i) the Authority's facilities remain
18    economically competitive with other convention venues and
19    (ii) conventions, exhibitions, trade shows, and other
20    meetings are attracted to and retained at Authority
21    facilities by producing an exhibitor-friendly environment
22    and by reducing costs for exhibitors and show managers.
23        (16) The provisions set forth in this Section are
24    reasonable, necessary, and narrowly tailored to safeguard
25    the Authority's and State of Illinois' shared and
26    compelling proprietary interests and respond to local

 

 

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1    economic needs as compared to the available alternative set
2    forth in House Bill 4900 of the 96th General Assembly and
3    proposals submitted to the Joint Committee on the
4    Metropolitan Pier and Exposition Authority. Action by the
5    State offers the only comprehensive means to remedy the
6    circumstances set forth in these findings, despite the
7    concerted and laudable voluntary efforts of the Authority,
8    labor unions, show contractors, show managers, and
9    exhibitors.
 
10(b) Definitions. As used in this Section:
11        "Booth" means the demarcated exhibit space of an
12    exhibitor on Authority premises.
13        "Contractor" or "show contractor" means any person who
14    contracts with the Authority, an exhibitor, or with the
15    manager of a show to provide any services related to
16    drayage, rigging, carpentry, decorating, electrical,
17    maintenance, mechanical, and food and beverage services or
18    related trades and duties for shows on Authority premises.
19        "Exhibitor" or "show exhibitor" means any person who
20    contracts with the Authority or with a manager or
21    contractor of a show held or to be held on Authority
22    premises.
23        "Exhibitor employee" means any person who has been
24    employed by the exhibitor as a full-time employee for a
25    minimum of 6 months before the show's opening date.

 

 

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1        "Hand tools" means cordless tools, power tools, and
2    other tools as determined by the Authority.
3        "Licensee" means any entity that uses the Authority's
4    premises.
5        "Manager" or "show manager" means any person that owns
6    or manages a show held or to be held on Authority premises.
7        "Personally owned vehicles" means the vehicles owned
8    by show exhibitors or the show management, excluding
9    commercially registered trucks, vans, and other vehicles
10    as determined by the Authority.
11        "Premises" means grounds, buildings, and facilities of
12    the Authority.
13        "Show" means a convention, exposition, trade show,
14    event, or meeting held on Authority premises by a show
15    manager or show contractor on behalf of a show manager.
16        "2011 Settlement Agreement" means the agreement that
17    the Authority made and entered into with the Chicago
18    Regional Council of Carpenters, not including any
19    revisions or amendments, and filed with the Illinois
20    Secretary of State Index Department and designated as
21    97-GA-A01.
22        "Union employees" means workers represented by a labor
23    organization, as defined in the National Labor Relations
24    Act, providing skilled labor services to exhibitors, a show
25    manager, or a show contractor on Authority premises.
 

 

 

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1(c) Exhibitor rights.
2        In order to control costs, increase the
3    competitiveness, and promote and provide for the economic
4    stability of Authority premises, all Authority contracts
5    with exhibitors, contractors, and managers shall include
6    the following minimum terms and conditions:
7        (1) Consistent with safety and the skills and training
8    necessary to perform the task, as determined by the
9    Authority, an exhibitor and exhibitor employees are
10    permitted in a booth of any size with the use of the
11    exhibitor's ladders and hand tools to:
12            (i) set-up and dismantle exhibits displayed on
13        Authority premises;
14            (ii) assemble and disassemble materials,
15        machinery, or equipment on Authority premises; and
16            (iii) install all signs, graphics, props,
17        balloons, other decorative items, and the exhibitor's
18        own drapery, including the skirting of exhibitor
19        tables, on the Authority's premises.
20        (2) An exhibitor and exhibitor employees are permitted
21    in a booth of any size to deliver, set-up, plug in,
22    interconnect, and operate an exhibitor's electrical
23    equipment, computers, audio-visual devices, and other
24    equipment.
25        (3) An exhibitor and exhibitor employees are permitted
26    in a booth of any size to skid, position, and re-skid all

 

 

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1    exhibitor material, machinery, and equipment on Authority
2    premises.
3        (4) An exhibitor and exhibitor employees are
4    prohibited at any time from using scooters, forklifts,
5    pallet jacks, condors, scissors lifts, motorized dollies,
6    or similar motorized or hydraulic equipment on Authority
7    premises.
8        (5) The Authority shall designate areas, in its
9    discretion, where exhibitors may unload and load exhibitor
10    materials from privately owned vehicles at Authority
11    premises with the use of non-motorized hand trucks and
12    dollies.
13        (6) On Monday through Friday for any consecutive 8-hour
14    period during the hours of 6:00 a.m. and 10:00 p.m., union
15    employees on Authority premises shall be paid
16    straight-time hourly wages plus fringe benefits. Union
17    employees shall be paid straight-time and a half hourly
18    wages plus fringe benefits for labor services provided
19    after any consecutive 8-hour period; provided, however,
20    that between the hours of midnight and 6:00 a.m. union
21    employees shall be paid double straight-time wages plus
22    fringe benefits for labor services.
23        (7) On Monday through Friday for any consecutive 8-hour
24    period during the hours of 6:00 a.m. and 10:00 p.m., a show
25    manager or contractor shall charge an exhibitor only for
26    labor services provided by union employees on Authority

 

 

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1    premises based on straight-time hourly wages plus fringe
2    benefits along with a reasonable mark-up. After any
3    consecutive 8-hour period, a show manager or contractor
4    shall charge an exhibitor only for labor services provided
5    by union employees based on straight-time and a half hourly
6    wages plus fringe benefits along with a reasonable mark-up;
7    provided, however, that between the hours of midnight and
8    6:00 a.m. a show manager or contractor shall charge an
9    exhibitor only for labor services provided by union
10    employees based on double straight-time wages plus fringe
11    benefits along with a reasonable mark-up.
12        (8) (Blank). On Saturdays for any consecutive 8-hour
13    period, union employees on Authority premises shall be paid
14    straight-time and a half hourly wages plus fringe benefits.
15    After any consecutive 8-hour period, union employees on
16    Authority premises shall be paid double straight-time
17    hourly wages plus fringe benefits; provided, however, that
18    between the hours of midnight and 6:00 a.m. union employees
19    shall be paid double straight-time wages plus fringe
20    benefits for labor services.
21        (9) (Blank). On Saturdays for any consecutive 8-hour
22    period, a show manager or contractor shall charge an
23    exhibitor only for labor services provided by union
24    employees on Authority premises based on straight-time and
25    a half hourly wages plus fringe benefits along with a
26    reasonable mark-up. After any consecutive 8-hour period, a

 

 

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1    show manager or contractor shall charge an exhibitor only
2    for labor services provided by union employees based on
3    double straight-time hourly wages plus fringe benefits
4    along with a reasonable mark-up; provided, however, that
5    between the hours of midnight and 6:00 a.m. a show manager
6    or contractor shall charge an exhibitor only for labor
7    services provided by union employees based on double
8    straight-time wages plus fringe benefits along with a
9    reasonable mark-up.
10        (10) (Blank). On Sundays and on State and federal
11    holidays, union employees on Authority premises shall be
12    paid double straight-time hourly wages plus fringe
13    benefits.
14        (11) (Blank). On Sundays and on State and federal
15    holidays, a show manager or contractor shall charge an
16    exhibitor only for labor services provided by union
17    employees on Authority premises based on double
18    straight-time hourly wages plus fringe benefits along with
19    a reasonable mark-up.
20        (12) The Authority has the power to determine, after
21    consultation with the Advisory Council, the work
22    jurisdiction and scope of work of union employees on
23    Authority premises during the move-in, move-out, and run of
24    a show, provided that any affected labor organization may
25    contest the Authority's determination through a binding
26    decision of an independent, third-party arbitrator. When

 

 

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1    making the determination, the Authority or arbitrator, as
2    the case may be, shall consider the training and skills
3    required to perform the task, past practices on Authority
4    premises, safety, and the need for efficiency and exhibitor
5    satisfaction. These factors shall be considered in their
6    totality and not in isolation. The Authority's
7    determination must be made in writing, set forth an
8    explanation and statement of the reason or reasons
9    supporting the determination, and be provided to each
10    affected labor organization. The changes in this item (12)
11    by this amendatory Act of the 97th General Assembly are
12    declarative of existing law and shall not be construed as a
13    new enactment. Nothing in this item permits the Authority
14    to eliminate any labor organization representing union
15    employees that provide labor services on the move-in,
16    move-out, and run of the show as of the effective date of
17    this amendatory Act of the 96th General Assembly.
18        (13) (Blank). During the run of a show, all stewards of
19    union employees shall be working stewards. Subject to the
20    discretion of the Authority, no more than one working
21    steward per labor organization representing union
22    employees providing labor services on Authority premises
23    shall be used per building and per show.
24        (14) An exhibitor or show manager may request by name
25    specific union employees to provide labor services on
26    Authority premises consistent with all State and federal

 

 

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1    laws. Union employees requested by an exhibitor shall take
2    priority over union employees requested by a show manager.
3        (15) A show manager or show contractor on behalf of a
4    show manager may retain an electrical contractor approved
5    by the Authority or Authority-provisioned electrical
6    services to provide electrical services on the premises. If
7    a show manager or show contractor on behalf of a show
8    manager retains Authority-provisioned electrical services,
9    then the Authority shall offer these services at a rate not
10    to exceed the cost of providing those services.
11        (16) Crew sizes for any task or operation shall not
12    exceed 2 persons unless, after consultation with the
13    Advisory Council, the Authority determines otherwise based
14    on the task, skills, and training required to perform the
15    task and on safety.
16        (17) An exhibitor may bring food and beverages on the
17    premises of the Authority for personal consumption.
18        (18) Show managers and contractors shall comply with
19    any audit performed under subsection (e) of this Section.
20        (19) A show manager or contractor shall charge an
21    exhibitor only for labor services provided by union
22    employees on Authority premises on a minimum half-hour
23    basis.
24    The Authority has the power to implement, enforce, and
25administer the exhibitor rights set forth in this subsection,
26including the promulgation of rules. The Authority also has the

 

 

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1power to determine violations of this subsection and implement
2appropriate remedies, including, but not limited to, barring
3violators from Authority premises. The provisions set forth in
4this Section are binding and equally applicable to any show
5conducted at Navy Pier, and this statement of the law is
6declarative of existing law and shall not be construed as a new
7enactment. The Authority may waive the applicability of only
8item (6) of this subsection (c) to the extent necessary and
9required to comply with paragraph 1 of Section F of the 2011
10Settlement Agreement, as set forth on Page 12 of that
11Agreement.
 
12(d) Advisory Council.
13        (1) An Advisory Council is hereby established to ensure
14    an active and productive dialogue between all affected
15    stakeholders to ensure exhibitor satisfaction for
16    conventions, exhibitions, trade shows, and meetings held
17    on Authority premises.
18        (2) The composition of the Council shall be determined
19    by the Authority consistent with its existing practice for
20    labor-management relations.
21        (3) The Council shall hold meetings no less than once
22    every 90 days.
 
23(e) Audit of exhibitor rights.
24    The Authority shall retain the services of a person to

 

 

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1complete, at least twice per calendar year, a financial
2statement audit and compliance attestation examination to
3determine and verify that the exhibitor rights set forth in
4this Section have produced cost reductions for exhibitors and
5those cost reductions have been fairly passed along to
6exhibitors. The financial statement audit shall be performed in
7accordance with generally accepted auditing standards. The
8compliance attestation examination shall be (i) performed in
9accordance with attestation standards established by the
10American Institute of Certified Public Accountants and shall
11examine the compliance with the requirements set forth in this
12Section and (ii) conducted by a licensed public accounting
13firm, selected by the Authority from a list of firms
14prequalified to do business with the Illinois Auditor General.
15Upon request, a show contractor or manager shall provide the
16Authority or person retained to provide auditing services with
17any information and other documentation reasonably necessary
18to perform the obligations set forth in this subsection. Upon
19completion, the report shall be submitted to the Authority and
20made publicly available on the Authority's website.
 
21(f) Exhibitor service reforms. The Authority shall make every
22effort to substantially reduce exhibitor's costs for
23participating in shows.
24        (1) Any contract to provide food or beverage services
25    in the buildings and facilities of the Authority, except

 

 

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1    Navy Pier, shall be provided at a rate not to exceed the
2    cost established in the contract. The Board shall
3    periodically review all food and beverage contracts.
4        (2) A department or unit of the Authority shall not
5    serve as the exclusive provider of electrical services.
6        (3) Exhibitors shall receive a detailed statement of
7    all costs associated with utility services, including the
8    cost of labor, equipment, and materials.
 
9(g) Severability. If any provision of this Section or its
10application to any person or circumstance is held invalid, the
11invalidity of that provision or application does not affect
12other provisions or applications of this Section that can be
13given effect without the invalid provision or application.
14(Source: P.A. 96-898, eff. 5-27-10; 96-899, eff. 5-28-10.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.".