SB2171sam002 97TH GENERAL ASSEMBLY

Sen. James F. Clayborne, Jr.

Filed: 3/14/2011

09700SB2171sam002 LRB097 10314 KMW 52915 a

AMENDMENT TO SENATE BILL 2171

AMENDMENT NO. ______. Amend Senate Bill 2171 by replacing everything after the enacting clause with the following:

"Section 5. The Property Tax Code is amended by changing Section 15-185 as follows:

(35 ILCS 200/15-185)

Sec. 15-185. Exemption for leaseback property and qualified leased property.

(a) Notwithstanding anything in this Code to the contrary, all property owned by a municipality with a population of over 500,000 inhabitants, a unit of local government whose jurisdiction includes territory located in whole or in part within a municipality with a population of over 500,000 inhabitants, or a municipality with home rule powers that is contiguous to a municipality with a population of over 500,000 inhabitants, or property that as of December 31, 2010 is exempt from real estate taxes and is owned by a tax-exempt entity, shall remain exempt from taxation and any leasehold interest in that property shall not be subject to taxation under Section 9-195 if the property is directly or indirectly leased, sold, or otherwise transferred to another entity whose property is not exempt and immediately thereafter is the subject of a leaseback or other agreement that directly or indirectly gives the lessee municipality or unit of local government (i) a right to use, control, and possess the property either directly or through its exempt subsidiary or affiliate or (ii) a right for the municipality or unit of local government to require the other entity, or the other entity's designee or assignee, to use the property in the performance of services for the municipality or unit of local government. Property shall no longer be exempt under this subsection as of the date when the right of the lessee municipality or unit of local government to use, control, and possess the property or for the municipality or unit of local government to require the performance of services is terminated and the lessee municipality or unit of local government no longer has any option to purchase or otherwise reacquire the interest in the property to the extent that such an option or right of reacquisition was part of the lease or a provision of the original sale which was transferred by the municipality or unit of local government.

(b) Notwithstanding anything in this Code to the contrary, all property owned by a municipality with a population of over 500,000 inhabitants, a unit of local government whose jurisdiction includes territory located in whole or in part within a municipality with a population of over 500,000 inhabitants, or a municipality with home rule powers that is contiguous to a municipality with a population of over 500,000 inhabitants, shall remain exempt from taxation and any leasehold interest in that property is not subject to taxation under Section 9-195 if the property, including dedicated public property, is used by a municipality or other unit of local government for the purpose of an airport or parking or for waste disposal or processing and is leased for continued use for the same purpose to another entity whose property is not exempt.

For the purposes of this subsection (b), "airport" does not include any airport property, as defined under Section 10 of the O'Hare Modernization Act.

Any transaction described under this subsection must be undertaken in accordance with all appropriate federal laws and regulations.

(c) For purposes of this Section, "municipality" means a municipality as defined in Section 1-1-2 of the Illinois Municipal Code, and "unit of local government" means a unit of local government as defined in Article VII, Section 1 of the Constitution of the State of Illinois. The provisions of this Section supersede and control over any conflicting provisions of this Code.

(Source: P.A. 96-779, eff. 8-28-09.)

Section 10. The Local Government Facility Lease Act is amended by changing Sections 5, 20, 25, 30, 35, and 40 as follows:

(50 ILCS 615/5)

Sec. 5. Definitions. As used in this Act:

"Covered entity" means a municipality or other unit of local government or an entity receiving tax-exempt status pursuant to Section 501(c)(3) of the Internal Revenue Code.

"Facility property" means property owned or leased by a covered entity municipality with a population of over 500,000 inhabitants, or a unit of local government whose jurisdiction includes territory located in whole or in part within a municipality with a population of over 500,000 inhabitants, that is used by the covered entity municipality or other unit of local government for a public purpose the purpose of an airport, parking, or waste disposal or processing. "Airport", however, does not include any airport property, as defined under Section 10 of the O'Hare Modernization Act.

"Leased facility property" means facility property that is leased or subleased by a covered entity to a private entity for continued use for the same public airport, parking, or waste disposal or processing purpose as that of the covered entity at the time of the lease.

"Lease" means a lease or sublease between a covered entity and a private entity.

"Lessee" means the lessee or sublessee in a lease or sublease between a covered entity and a private entity.

"Lessor" means the lessor or sublessor in a lease or sublease between a covered entity and a private entity.

"Public purpose" means any project or facility that is acquired, constructed, improved, rehabilitated, reconstructed, replaced, or maintained by a covered entity and that is acquired or undertaken for the benefit of the community. "Public purpose" includes, but is not limited to, a hospital or any other facility created or established for the purpose of providing medical services or treatment, an airport, a parking facility, or a waste disposal or processing facility. "Public purpose" does not include use for the purpose of any airport property, as defined under Section 10 of the O'Hare Modernization Act.

(Source: P.A. 94-750, eff. 5-9-06.)

(50 ILCS 615/20)

Sec. 20. Use of sale or lease proceeds by lessor.

(a) With respect to any leased facility property that is sold by a covered entity and subsequently leased back by that covered entity used for airport purposes, at least 90% of the net proceeds of the sale lease shall be expended or obligated by the covered entity lessor municipality for:

(i) the construction and maintenance of infrastructure within the municipality where the property is located;

(ii) contributions to pension funds created for municipal employees employed by the lessee of leased facility property or municipal employees within the municipality where the property is located; or

(iii) any combination of (i) or (ii).

(b) With respect to any leased facility property, at least 90% of the net proceeds of the lease shall be expended or obligated by the covered entity for:

(i) the construction and maintenance of infrastructure within the municipality where the property is located;

(ii) contributions to pension funds created for employees employed by the lessee of leased facility property or municipal employees within the municipality where the property is located; or

(iii) any combination of (i) or (ii).

(c) (b) The amount of net proceeds expended or obligated for item (ii) in subsection (a) may not exceed the amount of net proceeds expended or obligated for item (i) in subsection (a), and the amount of net proceeds expended or obligated for item (ii) in subsection (b) may not exceed the amount of net proceeds expended or obligated for item (i) in subsection (b). As used in this Section, "net proceeds" means the gross proceeds less any debt service payments on, and payments to retire, debt that is specifically associated with the facility property or leased facility property or otherwise required to be paid out of the lease proceeds of the sale or lease.

(Source: P.A. 94-750, eff. 5-9-06.)

(50 ILCS 615/25)

Sec. 25. Project labor agreements for projects funded by sale or airport lease proceeds. With respect to the construction of public works funded by the proceeds described in Section 20 of this Act, where the project has an estimated contract value of $500,000 or more, where there has been a written determination that the public interest in cost, timely and orderly construction, labor stability, and advancement of minority-owned and women-owned businesses and minority and female employment would be served by a project labor agreement, and where not otherwise prohibited by applicable law, the covered entity municipality or municipal corporation responsible for implementing the project shall in good faith negotiate a project labor agreement with labor organizations engaged in the construction industry. Any project labor agreement shall:

(1) set forth effective, immediate, and mutually binding procedures for resolving jurisdictional disputes and grievances arising before completion of work;

(2) contain guarantees against strikes, lockouts, or similar actions;

(3) ensure a reliable source of skilled and experienced labor;

(4) further public policy objectives as to improved employment opportunities for minorities and women in the construction industry to the extent permitted by State and federal law;

(5) be made binding on all contractors and subcontractors on the public works project through inclusion of appropriate bid specifications in all relevant bid documents; and

(6) include such other terms as the parties deem appropriate.

(Source: P.A. 94-750, eff. 5-9-06.)

(50 ILCS 615/30)

Sec. 30. Labor neutrality and card check procedure agreement at the leased facility property. With respect to employees assigned to work on the premises of leased facility property used for airport purposes and who are not otherwise members of an existing bargaining unit cognizable under the National Labor Relations Act, and where not otherwise prohibited by applicable law, the lessee shall negotiate in good faith, with any union that seeks to represent its employees, for a labor neutrality and card check procedure agreement. The agreement shall apply only to employees actually assigned to work on the premises of the leased facility property used for airport purposes and shall have no applicability to employees not so assigned. The agreement shall contain provisions accomplishing the following objectives: resolution by a third party neutral of disagreements regarding bargaining unit scope, inclusions, and exclusions; determination of the existence of majority support for a bargaining agent by means of a card check procedure; employer neutrality; prohibition of coercion or intimidation of employees by either the employer or the union; and a prohibition on strikes, work stoppages, or picketing for the duration of the agreement.

(Source: P.A. 94-750, eff. 5-9-06.)

(50 ILCS 615/35)

Sec. 35. Wage requirements. In order to protect the wages, working conditions, and job opportunities of employees employed by the lessee of leased facility property used for airport purposes to perform work on the site of the leased premises previously performed by employees of the covered entity lessor on the site of the leased premises and who were in recognized bargaining units at the time of the lease, the lessee, and any subcontractor retained by the lessee to perform such work on the site of the leased premises, shall be required to pay to those employees an amount not less than the economic equivalent of the standard of wages and benefits enjoyed by the covered entity's lessor's employees who previously performed that work. The covered entity lessor shall certify to the lessee the amount of wages and benefits (or their equivalent) as of the time of the lease, and any changes to those amounts as they may occur during the term of the lease. All projects at the leased facility property used for airport purposes shall be considered public works for purposes of the Prevailing Wage Act, the Economic Development Area Tax Increment Allocation Act, and the Illinois Health Facilities Planning Act.

(Source: P.A. 94-750, eff. 5-9-06.)

(50 ILCS 615/40)

Sec. 40. Required offers of employment. As part of any transaction to lease facility property that is used for airport purposes:

(1) the lessee must offer employment, under substantially similar terms and conditions, to the employees of the covered entity municipality who are employed, at the time of the lease, with respect to the facility property used for airport purposes; and

(2) the covered entity municipality must offer employment in another department, division, or unit of the covered entity municipality, under substantially similar terms and conditions, to employees of the covered entity municipality who are employed, at the time of the lease, with respect to the facility property used for airport purposes.

(Source: P.A. 94-750, eff. 5-9-06.)".