Illinois General Assembly - Full Text of SB3482
Illinois General Assembly

Previous General Assemblies

Full Text of SB3482  96th General Assembly

SB3482 96TH GENERAL ASSEMBLY

  
  

 


 
96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB3482

 

Introduced 2/10/2010, by Sen. Heather Steans

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Creates the Public-Private Partnerships for Transportation Act. Provides that the Act is intended to promote public-private partnerships for transportation by authorizing the Illinois Department of Transportation (the Department) and the Illinois State Toll Highway Authority (the Authority) to enter into public-private agreements related to the development, operation, and financing of transportation facilities and to encourage the practice of congestion pricing in connection with toll highways, pursuant to which higher toll rates are charged during times or in locations of most congestion. Grants to the Department and the Authority the necessary powers for the development, financing, and operation of transportation projects through public-private agreements with one or more private entities. Amends the Department of Transportation Law of the Civil Administrative Code of Illinois, Illinois Finance Authority Act, Illinois Procurement Code, Public Construction Bond Act, Public Works Preference Act, Employment of Illinois Workers on Public Works Act, Business Enterprise for Minorities, Females, and Persons with Disabilities Act, Retailers' Occupation Tax Act, Property Tax Code, Toll Highway Act, and Prevailing Wage Act to implement the new Act. Amends the State Finance Act to create the Public-Private Partnerships for Transportation Fund and provides that all money in the fund shall be used to supplement funding, as directed in the appropriation, for transportation projects in the State. Makes other changes. Effective immediately.


LRB096 20595 AJT 36293 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3482 LRB096 20595 AJT 36293 b

1     AN ACT concerning transportation.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 1. Short title. This Act may be cited as the
5 Public-Private Partnerships for Transportation Act.
 
6     Section 5. Public policy and legislative intent.
7     (a) It is the public policy of the State of Illinois to
8 promote the development, financing, and operation of
9 transportation facilities that serve the needs of the public.
10     (b) Existing methods of procurement and financing of
11 transportation facilities by transportation agencies impose
12 limitations on the methods by which transportation facilities
13 may be developed and operated within the State.
14     (c) Authorizing transportation agencies to enter into
15 public-private partnerships, whereby private entities may
16 develop, operate, and finance transportation facilities, has
17 the potential to promote the development of transportation
18 facilities in the State as well as investment in the State.
19     (d) It is the intent of this Act to promote public-private
20 partnerships for transportation by authorizing transportation
21 agencies to enter into public-private agreements related to the
22 development, operation, and financing of transportation
23 facilities.

 

 

SB3482 - 2 - LRB096 20595 AJT 36293 b

1     (e) It is the intent of this Act to encourage the practice
2 of congestion pricing in connection with toll highways,
3 pursuant to which higher toll rates are charged during times or
4 in locations of most congestion.
 
5     Section 10. Definitions.
6     As used in this Act:
7     "Approved proposal" means the proposal that is approved by
8 the transportation agency pursuant to subsection (f) of Section
9 20 or subsection (f) of Section 25 of this Act.
10     "Approved proposer" means the private entity whose
11 proposal is the approved proposal.
12     "Authority" means the Illinois State Toll Highway
13 Authority.
14     "Competing proposal" means a proposal submitted by a
15 private entity in connection with a proposed transportation
16 project, other than the unsolicited proposal.
17     "Contractor" means a private entity that has entered into a
18 public-private agreement with the transportation agency to
19 provide services to or on behalf of the transportation agency.
20     "Department" means the Illinois Department of
21 Transportation.
22     "Develop" or "development" means to do one or more of the
23 following: plan, design, develop, lease, acquire, install,
24 construct, reconstruct, rehabilitate, extend, or expand.
25     "Maintain" or "maintenance" includes ordinary maintenance,

 

 

SB3482 - 3 - LRB096 20595 AJT 36293 b

1 repair, rehabilitation, capital maintenance, maintenance
2 replacement, and any other categories of maintenance that may
3 be designated by the transportation agency.
4     "Operate" or "operation" means to do one or more of the
5 following: maintain, improve, equip, modify, or otherwise
6 operate.
7     "Private entity" means any combination of one or more
8 individuals, corporations, general partnerships, limited
9 liability companies, limited partnerships, joint ventures,
10 business trusts, nonprofit entities, or other business
11 entities that are parties to a proposal for a transportation
12 project or an agreement related to a transportation project. A
13 public agency may provide services to a contractor as a
14 subcontractor or subconsultant without affecting the private
15 status of the private entity and the ability to enter into a
16 public-private agreement.
17     "Proposal" means all materials and documents prepared by or
18 on behalf of a private entity relating to the proposed
19 development, financing, or operation of a transportation
20 facility as a transportation project.
21     "Proposer" means a private entity that has submitted a
22 proposal or statement of qualifications for a public-private
23 agreement in response to a request for proposals or a request
24 for qualifications issued by a transportation agency under this
25 Act, an unsolicited proposal, or a competing proposal.
26     "Public posting period" means the period of 120 days

 

 

SB3482 - 4 - LRB096 20595 AJT 36293 b

1 beginning when the transportation agency has posted the
2 unsolicited proposal publicly on its website and has posted
3 notice of its acceptance of the unsolicited proposal publicly
4 in a newspaper or newspapers of general circulation within
5 Sangamon County and within the county or counties in which the
6 transportation project is to be located.
7     "Public-private agreement" means the public-private
8 agreement between the contractor and the transportation agency
9 relating to one or more of the development, financing, or
10 operation of a transportation project that is entered into
11 under this Act.
12     "Request for proposals" means all materials and documents
13 prepared by or on behalf of the transportation agency to
14 solicit proposals from private entities to enter into a
15 public-private agreement.
16     "Request for qualifications" means all materials and
17 documents prepared by or on behalf of the transportation agency
18 to solicit statements of qualification from private entities to
19 enter into a public-private agreement.
20     "Revenues" means all revenues, including any combination
21 of: income; earnings and interest; user fees; lease payments;
22 allocations; federal, State, and local appropriations, grants,
23 loans, lines of credit, and credit guarantees; bond proceeds;
24 equity investments; service payments; or other receipts;
25 arising out of or in connection with a transportation project,
26 including the development, financing, and operation of a

 

 

SB3482 - 5 - LRB096 20595 AJT 36293 b

1 transportation project. The term includes money received as
2 grants, loans, lines of credit, credit guarantees, or otherwise
3 in aid of a transportation project from the federal government,
4 the State, a unit of local government, or any agency or
5 instrumentality of the federal government, the State, or a unit
6 of local government.
7     "Transportation agency" means (i) the Department, (ii) the
8 Authority, or (iii), with respect to an existing airport, an
9 airport authority created and established under the Airport
10 Authorities Act owning and operating the airport.
11     "Transportation facility" means any (i) new or existing
12 road, highway, toll highway, bridge, tunnel, intermodal
13 facility, intercity or high-speed passenger rail, or other
14 transportation facility or infrastructure, excluding airports,
15 under the jurisdiction of the Department or the Authority, or
16 (ii) any existing airport owned and operated by an airport
17 authority created and established under the Airport
18 Authorities Act. The term "transportation facility" may refer
19 to one or more transportation facilities that are proposed to
20 be developed or operated as part of a single transportation
21 project.
22     "Transportation project" or "project" means any or the
23 combination of the development, financing, or operation with
24 respect to all or a portion of any transportation facility
25 under the jurisdiction of the transportation agency,
26 undertaken pursuant to this Act.

 

 

SB3482 - 6 - LRB096 20595 AJT 36293 b

1     "Unit of local government" has the meaning ascribed to that
2 term in Article VII, Section 1 of the Constitution of the State
3 of Illinois and also means any unit designated as a municipal
4 corporation.
5     "Unsolicited proposal" means the first proposal submitted
6 by a private entity to the transportation agency with respect
7 to a particular transportation project, other than a proposal
8 submitted in response to a request for qualifications or a
9 request for proposals.
10     "User fees" or "tolls" means the rates, tolls, fees, or
11 other charges imposed by the contractor for use of all or a
12 portion of a transportation project under a public-private
13 agreement.
 
14     Section 15. Formation of public-private agreements;
15 project planning.
16     (a) Each transportation agency may exercise the powers
17 granted by this Act to do some or all of develop, finance, and
18 operate any part of one or more transportation projects through
19 public-private agreements with one or more private entities.
20 All net proceeds arising out of a transportation project or
21 public-private agreement undertaken pursuant to this Act must
22 be deposited into the Public-Private Partnerships for
23 Transportation Fund.
24     (b) A contractor has:
25         (1) all powers allowed by law generally to a private

 

 

SB3482 - 7 - LRB096 20595 AJT 36293 b

1     entity having the same form of organization as the
2     contractor; and
3         (2) the power to develop, finance, and operate the
4     transportation facility and to impose user fees in
5     connection with the use of the transportation facility,
6     subject to the terms of the public-private agreement.
7     No tolls or user fees may be imposed by the contractor
8 except as set forth in a public-private agreement.
9     (c) Each year, at least 30 days prior to the beginning of
10 the transportation agency's fiscal year, and at other times the
11 transportation agency deems necessary, the transportation
12 agency shall submit for review to the General Assembly a
13 description of potential projects that the transportation
14 agency is considering undertaking under this Act. Prior to the
15 issuance of any request for qualifications or request for
16 proposals with respect to any potential project pursuant to
17 Section 20 of this Act, the commencement of a procurement
18 process for that particular potential project shall be
19 authorized by joint resolution of the General Assembly.
20     (d) Each year, at least 30 days prior to the beginning of
21 the transportation agency's fiscal year, the transportation
22 agency shall submit a description of potential projects that
23 the transportation agency is considering undertaking under
24 this Act to each county, municipality, and metropolitan
25 planning organization, with respect to each project located
26 within its boundaries.

 

 

SB3482 - 8 - LRB096 20595 AJT 36293 b

1     (e) Any project undertaken under this Act shall be subject
2 to all applicable planning requirements otherwise required by
3 law, including land use planning, regional planning,
4 transportation planning, and environmental compliance
5 requirements.
6     (f) Any new transportation facility developed as a project
7 under this Act, whether undertaken pursuant to Section 20 or
8 Section 25 of this Act, must be consistent with the regional
9 plan then in existence of any metropolitan planning
10 organization in whose boundaries the project is located.
 
11     Section 20. Procurement process.
12     (a) A transportation agency seeking to enter into a
13 public-private partnership with a private entity to develop or
14 operate, or to develop and operate, a transportation facility
15 as a transportation project, except in response to an
16 unsolicited proposal or competing proposal, shall first issue a
17 request for proposals from private entities for some or all of
18 the development, financing, and operation of one or more
19 transportation projects.
20     (b) Before issuing a request for proposals, the
21 transportation agency may issue a request for qualifications,
22 in which case the transportation agency shall (i) provide a
23 public notice of the request for qualifications for such period
24 as deemed appropriate or warranted by the transportation
25 agency, (ii) set forth requirements and evaluation criteria in

 

 

SB3482 - 9 - LRB096 20595 AJT 36293 b

1 the request for qualifications, (iii) determine which private
2 entities that have submitted qualifications, if any, meet the
3 requirements and evaluation criteria set forth in the request
4 for qualifications, and (iv) shall issue requests for proposals
5 only to those private entities determined to meet the
6 requirements and evaluation criteria set forth in the request
7 for qualifications.
8     (c) If the transportation agency has not issued a request
9 for qualifications under this Section, the transportation
10 agency shall provide a public notice of the request for
11 proposals for a period deemed appropriate or warranted by the
12 transportation agency.
13     (d) A request for proposals shall:
14         (1) indicate in general terms the scope of work, goods,
15     and services sought to be procured;
16         (2) contain or incorporate by reference the
17     specifications and contractual terms and conditions
18     applicable to the procurement and the transportation
19     project;
20         (3) specify the factors, criteria, and other
21     information that will be used in evaluating the proposals;
22         (4) contain or incorporate by reference the other
23     applicable contractual terms and conditions; and
24         (5) contain or incorporate by reference any other
25     provisions, materials, or documents the transportation
26     agency deems appropriate.

 

 

SB3482 - 10 - LRB096 20595 AJT 36293 b

1     (e) The transportation agency shall determine and set forth
2 in the request for proposals the criteria for the evaluation of
3 proposals that are most appropriate for the transportation
4 project. The transportation agency may use (i) a selection
5 process that results in selection of the proposal offering the
6 best value to the public, (ii) a selection process that results
7 in selection of the proposal offering the lowest price or cost
8 or the highest payment to, or revenue sharing with, the
9 transportation agency, (iii) a selection process that results
10 in the imposition of tolls for the shortest period, or (iv) any
11 other selection process that the transportation agency
12 determines is in the best interests of the State and the
13 public.
14     (f) Based on its review and evaluation of the proposal or
15 proposals received in response to the request for proposals,
16 the transportation agency shall determine which one or more
17 proposals, if any, best serve the public purpose of this Act
18 and satisfy the criteria set forth in the request for
19 proposals. Prior to approving such proposal or proposals, the
20 transportation agency shall submit such proposal or proposals
21 to the Commission on Government Forecasting and
22 Accountability, which, within 20 days of submission by the
23 transportation agency, shall complete a review of the proposal
24 or proposals and report on the value of the proposal or
25 proposals to the State. The transportation agency may approve
26 the one or more proposals, if any, determined to best serve the

 

 

SB3482 - 11 - LRB096 20595 AJT 36293 b

1 public purpose of this Act and satisfy the criteria set forth
2 in the request for proposals, but not sooner than the
3 transportation agency receives and considers the findings of
4 the report of the Commission on Government Forecasting and
5 Accountability.
6     (g) In addition to any other rights under this Act, in
7 connection with any procurement under this Act, the following
8 rights are reserved to each transportation agency:
9         (1) to withdraw a request for qualifications or a
10     request for proposals at any time, and to publish a new
11     request for qualifications or request for proposals;
12         (2) to not approve a proposal for any reason;
13         (3) to not award a public-private agreement for any
14     reason;
15         (4) to request clarifications to any statement of
16     qualifications or proposal received, to seek one or more
17     revised proposals or one or more best and final offers, or
18     to conduct negotiations with one or more private entities
19     that have submitted proposals;
20         (5) to modify, during the pendency of a procurement,
21     the terms, provisions, and conditions of a request for
22     qualifications or request for proposals or the technical
23     specifications or form of a public-private agreement;
24         (6) to interview proposers; and
25         (7) any other rights available to the transportation
26     agency under applicable law and regulations.

 

 

SB3482 - 12 - LRB096 20595 AJT 36293 b

1     (h) If the transportation agency designates an approved
2 proposer for the transportation project, the transportation
3 agency shall execute the public-private agreement and publish
4 notice of the execution of the public-private agreement on its
5 website and in a newspaper or newspapers of general circulation
6 within the county or counties in which the transportation
7 project is to be located. Any action to contest the validity of
8 a public-private agreement entered into under this Act must be
9 brought no later than 30 days after the date of publication of
10 the notice of execution of the public-private agreement.
11     (i) The transportation agency may also apply for, execute,
12 or endorse applications submitted by private entities to obtain
13 federal credit assistance for qualifying projects developed or
14 operated pursuant to this Act.
 
15     Section 25. Unsolicited proposals.
16     (a) Any private entity seeking authorization under this Act
17 to develop or operate, or to develop and operate, a
18 transportation facility as a transportation project, except in
19 response to a request for qualifications or a request for
20 proposals, shall first submit an unsolicited proposal or
21 competing proposal for the transportation project to the
22 transportation agency, receive approval of the transportation
23 agency, and enter into a public-private agreement with the
24 transportation agency.
25     (b) Within 120 days of the effective date of this Act, the

 

 

SB3482 - 13 - LRB096 20595 AJT 36293 b

1 Department shall develop guidelines that establish the process
2 for the acceptance, review, and evaluation of unsolicited
3 proposals by the Department and any other transportation
4 agency, other than the Authority. Within 120 days of the
5 effective date of this Act, the Authority shall develop
6 guidelines that establish the process for the acceptance,
7 review, and evaluation of unsolicited proposals by the
8 Authority.
9     The guidelines developed by the Department and the
10 Authority each shall establish criteria by which to determine
11 whether or not to accept an unsolicited proposal, a specific
12 schedule for review of unsolicited proposals by the
13 transportation agency, a process for alteration of that
14 schedule by the transportation agency if it deems that changes
15 are necessary because of the scope or complexity of unsolicited
16 proposals it receives, the process for receipt and review of
17 competing proposals, and the type and amount of information
18 that is necessary for adequate review of unsolicited proposals
19 and competing proposals in each stage of review. For
20 transportation projects that have approved or pending State and
21 federal environmental clearances, have secured significant
22 right of way, have previously allocated significant State or
23 federal funding, or exhibit other circumstances that could
24 reasonably reduce the amount of time to develop or operate the
25 transportation facility in accordance with the purpose of this
26 Act, such guidelines shall provide for a prioritized review and

 

 

SB3482 - 14 - LRB096 20595 AJT 36293 b

1 selection process.
2     (c) Any unsolicited proposal or competing proposal shall
3 include the following material and information in connection
4 with the transportation facility to be developed or operated as
5 part of the transportation project, unless waived by the
6 transportation agency in its guidelines or written
7 instructions given to the private entity:
8         (1) a topographic map (1:2,000 or other appropriate
9     scale) indicating the location of the transportation
10     facility;
11         (2) a description of the transportation facility,
12     including the conceptual design of such facility and all
13     proposed interconnections with other transportation
14     facilities;
15         (3) the proposed date for development or operation of
16     the transportation facility or facilities along with an
17     estimate of the life-cycle cost of the transportation
18     facility as proposed;
19         (4) a statement setting forth the method by which the
20     private entity proposes to secure any property interests
21     required for the transportation facility;
22         (5) information relating to the current transportation
23     plans, if any, of each affected jurisdiction;
24         (6) a list of all permits and approvals required for
25     developing or operating improvements to the transportation
26     facility from local, State, or federal agencies and a

 

 

SB3482 - 15 - LRB096 20595 AJT 36293 b

1     projected schedule for obtaining such permits and
2     approvals;
3         (7) a list of public utility facilities, if any, that
4     will be crossed by the transportation facility and a
5     statement of the plans of the private entity to accommodate
6     such crossings;
7         (8) a statement setting forth the private entity's
8     general plans for developing or operating the
9     transportation facility, including identification of any
10     revenue, public or private, or proposed debt or equity
11     investment or concession proposed by the private entity;
12         (9) the names and addresses of the persons who may be
13     contacted for further information concerning the proposal;
14         (10) information on how the private entity's proposal
15     will address the needs identified in the appropriate State,
16     regional, or local transportation plan by improving
17     safety, reducing congestion, increasing capacity, or
18     enhancing economic efficiency; and
19         (11) such additional material and information as the
20     transportation agency may reasonably request pursuant to
21     its guidelines or other written instructions.
22     (d) The transportation agency may charge a reasonable fee
23 to cover the costs of processing, reviewing, and evaluating an
24 unsolicited proposal or competing proposal, including without
25 limitation, reasonable attorneys' fees and fees for financial
26 and other necessary advisors or consultants.

 

 

SB3482 - 16 - LRB096 20595 AJT 36293 b

1     (e) Within 60 days of receiving an unsolicited proposal for
2 a transportation project, but before reviewing, evaluating, or
3 approving the unsolicited proposal, the transportation agency
4 shall determine, based on its guidelines, whether or not to
5 accept the unsolicited proposal for further review and shall
6 promptly notify the proposer that submitted the unsolicited
7 proposal of its decision to accept or to not accept the
8 unsolicited proposal.
9     (f) If the transportation agency accepts the unsolicited
10 proposal for further review:
11         (1) Before reviewing, evaluating, or approving any
12     proposal, the transportation agency shall promptly post
13     notice of its acceptance of the unsolicited proposal
14     publicly for further review in a newspaper or newspapers of
15     general circulation within Sangamon County and within the
16     county or counties in which the transportation project is
17     to be located, shall concurrently post the unsolicited
18     proposal publicly on its website for 120 days, and shall
19     accept competing proposals within such public posting
20     period.
21         (2) As part of the evaluation of any proposal, the
22     transportation agency shall provide copies of the
23     unsolicited proposal and any competing proposals received
24     to the Commission on Government Forecasting and
25     Accountability, the Department (unless the transportation
26     agency is the Department), and each county, municipality,

 

 

SB3482 - 17 - LRB096 20595 AJT 36293 b

1     and metropolitan planning organization in whose boundaries
2     the transportation project would be located; and shall
3     receive and consider any comments submitted concerning the
4     merits of each proposal.
5         (3) Within 60 days of the end of the public posting
6     period, the transportation agency shall review and
7     evaluate the unsolicited proposal and any competing
8     proposals received within the public posting period. Based
9     on its review and evaluation of the proposal or proposals
10     received in response to the request for proposals, the
11     transportation agency shall determine which one or more
12     proposals, if any, best serve the public purpose of this
13     Act and satisfy the criteria set forth in the request for
14     proposals. The transportation agency may determine that a
15     proposal serves such public purpose if:
16             (A) there is a public need for the transportation
17         facility the private entity proposes to develop or
18         operate;
19             (B) the transportation facility and the proposed
20         interconnections with existing transportation
21         facilities, and the private entity's plans for
22         development or operation of the transportation
23         facility, are, in the opinion of the transportation
24         agency, reasonable and will address the needs
25         identified in the appropriate State, regional, or
26         local transportation plan by improving safety,

 

 

SB3482 - 18 - LRB096 20595 AJT 36293 b

1         reducing congestion, increasing capacity, or enhancing
2         economic efficiency;
3             (C) the estimated cost of developing or operating
4         the transportation facility is reasonable in relation
5         to similar facilities; and
6             (D) the private entity's plans will result in the
7         timely development or operation of the transportation
8         facility or its more efficient operation.
9     In evaluating any proposal, the transportation agency may
10 rely upon internal staff reports prepared by personnel familiar
11 with the operation of similar facilities or the advice of
12 outside advisors or consultants having relevant experience;
13 and shall also consider the extent to which the transportation
14 facility is consistent with the regional plan then in existence
15 of any metropolitan planning organization in whose boundaries
16 the transportation facilities would be located.
17     Prior to approving the proposal or proposals determined to
18 best serve the public purpose of this Act and satisfy the
19 criteria set forth in the request for proposals, the
20 transportation agency shall submit such proposal or proposals
21 to the Commission on Government Forecasting and
22 Accountability, which, within 20 days of submission by the
23 transportation agency, shall complete a review of the proposal
24 or proposals and report on the value of the proposal or
25 proposals to the State. The transportation agency may approve
26 the one or more proposals, if any, determined to best serve the

 

 

SB3482 - 19 - LRB096 20595 AJT 36293 b

1 public purpose of this Act and satisfy the criteria set forth
2 in the request for proposals, but not sooner than the
3 transportation agency receives and considers the findings of
4 the report of the Commission on Government Forecasting and
5 Accountability.
6     (g) In addition to any other rights under this Act, the
7 following rights are reserved to each transportation agency:
8         (1) to not accept a proposal for any reason;
9         (2) to not approve a proposal for any reason;
10         (3) to not award a public-private agreement for any
11     reason;
12         (4) to request clarifications to any proposal
13     received, to seek one or more revised proposals or one or
14     more best and final offers, or to conduct negotiations with
15     one or more private entities that have submitted proposals;
16         (5) to interview proposers; and
17         (6) any other rights available to the transportation
18     agency under applicable law and regulations.
19     (h) The transportation agency and the approved proposer
20 shall execute the public-private agreement and publish notice
21 of the execution of the public-private agreement on its website
22 and in a newspaper or newspapers of general circulation within
23 the county or counties in which the transportation project is
24 to be located. Any action to contest the validity of a
25 public-private agreement entered into under this Act must be
26 brought no later than 30 days after the date of publication of

 

 

SB3482 - 20 - LRB096 20595 AJT 36293 b

1 the notice of execution of the public-private agreement.
2     (i) For any project with an estimated construction cost of
3 over $50,000,000, the transportation agency must also require
4 the approved proposer to pay the costs for an independent audit
5 of any and all traffic and cost estimates associated with the
6 approved proposal, as well as a review of all public costs and
7 potential liabilities to which taxpayers could be exposed
8 (including improvements to other transportation facilities
9 that may be needed as a result of the approved proposal,
10 failure by the approved proposer to reimburse the
11 transportation agency for services provided, and potential
12 risk and liability in the event the approved proposer defaults
13 on the public-private agreement or on bonds issued for the
14 project). This independent audit must be conducted by an
15 independent consultant selected by the transportation agency,
16 and all such information from such review must be fully
17 disclosed.
18     (j) The transportation agency may also apply for, execute,
19 or endorse applications submitted by private entities to obtain
20 federal credit assistance for qualifying projects developed or
21 operated pursuant to this Act.
 
22     Section 30. Interim agreements.
23     (a) Prior to or in connection with the negotiation of the
24 public-private agreement, the transportation agency may enter
25 into an interim agreement with the approved proposer. Such

 

 

SB3482 - 21 - LRB096 20595 AJT 36293 b

1 interim agreement may:
2         (1) permit the approved proposer to commence
3     activities relating to a proposed project as the
4     transportation agency and the approved proposer shall
5     agree to and for which the approved proposer may be
6     compensated, including, but not limited to, project
7     planning and development, advance right-of-way
8     acquisition, design and engineering, environmental
9     analysis and mitigation, survey, conducting transportation
10     and revenue studies, and ascertaining the availability of
11     financing for the proposed facility or facilities;
12         (2) establish the process and timing of the exclusive
13     negotiation of a public-private agreement with an approved
14     proposer;
15         (3) require that in the event the transportation agency
16     determines not to proceed with a project after the approved
17     proposer and the transportation agency have executed an
18     interim agreement, and thereby terminates the interim
19     agreement or declines to proceed with negotiation of a
20     public-private agreement with an approved proposer, the
21     transportation agency shall pay to the approved proposer
22     certain of the costs incurred by the approved proposer; and
23         (4) contain any other provisions related to any aspect
24     of the transportation project that the parties may deem
25     appropriate.
26     (b) Notwithstanding anything to the contrary in this Act, a

 

 

SB3482 - 22 - LRB096 20595 AJT 36293 b

1 transportation agency may enter into an interim agreement with
2 multiple approved proposers if the transportation agency
3 determines in writing that it is in the public interest to do
4 so.
 
5     Section 35. Public-private agreements.
6     (a) Unless undertaking actions otherwise permitted in an
7 interim agreement entered into under Section 25 of this Act,
8 before developing, financing, or operating the transportation
9 project, the approved proposer shall enter into a
10 public-private agreement with the transportation agency.
11 Subject to the requirements of this Act, a public-private
12 agreement may provide that the approved proposer, acting on
13 behalf of the transportation agency, is partially or entirely
14 responsible for any combination of developing, financing, or
15 operating the transportation project under terms set forth in
16 the public-private agreement.
17     (b) The public-private agreement may, as determined
18 appropriate by the transportation agency for the particular
19 transportation project, provide for some or all of the
20 following:
21         (1) Construction, financing, and operation of the
22     transportation project under terms set forth in the
23     public-private agreement, in any form as deemed
24     appropriate by the transportation agency, including, but
25     not limited to, a long-term concession and lease, a

 

 

SB3482 - 23 - LRB096 20595 AJT 36293 b

1     design-build agreement, a design-build-maintain agreement,
2     a design-build-operate-maintain agreement and a
3     design-build-finance-operate-maintain agreement.
4         (2) Delivery of performance and payment bonds or other
5     performance security determined suitable by the
6     transportation agency, including letters of credit, United
7     States bonds and notes, parent guaranties, and cash
8     collateral, in connection with the development, financing,
9     or operation of the transportation project, in the forms
10     and amounts set forth in the public-private agreement or
11     otherwise determined as satisfactory by the transportation
12     agency to protect the transportation agency and payment
13     bond beneficiaries who have a direct contractual
14     relationship with the contractor or a subcontractor of the
15     contractor to supply labor or material. The payment or
16     performance bond or alternative form of performance
17     security is not required for the portion of a
18     public-private agreement that includes only design,
19     planning, or financing services, the performance of
20     preliminary studies, or the acquisition of real property.
21         (3) Review of plans for any development or operation,
22     or both, of the transportation project by the
23     transportation agency.
24         (4) Inspection of any construction of or improvements
25     to the transportation project by the transportation agency
26     or another entity designated by the transportation agency

 

 

SB3482 - 24 - LRB096 20595 AJT 36293 b

1     or under the public-private agreement to ensure that the
2     construction or improvements conform to the standards set
3     forth in the public-private agreement or are otherwise
4     acceptable to the transportation agency.
5         (5) Maintenance of:
6             (A) one or more policies of public liability
7         insurance (copies of which shall be filed with the
8         transportation agency accompanied by proofs of
9         coverage); or
10             (B) self-insurance; each in form and amount as set
11         forth in the public-private agreement or otherwise
12         satisfactory to the transportation agency as
13         reasonably sufficient to insure coverage of tort
14         liability to the public and employees and to enable the
15         continued operation of the transportation project.
16         (6) Where operations are included within the
17     contractor's obligations under the public-private
18     agreement, monitoring of the maintenance practices of the
19     contractor by the transportation agency or another entity
20     designated by the transportation agency or under the
21     public-private agreement and the taking of the actions the
22     transportation agency finds appropriate to ensure that the
23     transportation project is properly maintained.
24         (7) Reimbursement to be paid to the transportation
25     agency as set forth in the public-private agreement for
26     services provided by the transportation agency.

 

 

SB3482 - 25 - LRB096 20595 AJT 36293 b

1         (8) Filing of appropriate financial statements and
2     reports as set forth in the public-private agreement or as
3     otherwise in a form acceptable to the transportation agency
4     on a periodic basis.
5         (9) Compensation or payments to the contractor.
6     Compensation or payments may include any or a combination
7     of the following:
8             (A) a base fee and additional fee for project
9         savings as the design-builder of a construction
10         project;
11             (B) a development fee, payable on a lump sum basis,
12         progress payment basis, time and materials basis, or
13         another basis deemed appropriate by the transportation
14         agency;
15             (C) an operations fee, payable on a lump-sum basis,
16         time and material basis, periodic basis, or another
17         basis deemed appropriate by the transportation agency;
18             (D) some or all of the revenues, if any, arising
19         out of operation of the transportation project;
20             (E) a maximum rate of return on investment or
21         return on equity or a combination of the two;
22             (F) in-kind services, materials, property,
23         equipment, or other items;
24             (G) compensation in the event of any termination;
25             (H) availability payments or similar arrangements
26         whereby payments are made to the contractor pursuant to

 

 

SB3482 - 26 - LRB096 20595 AJT 36293 b

1         the terms set forth in the public-private agreement or
2         related agreements; or
3             (I) other compensation set forth in the
4         public-private agreement or otherwise deemed
5         appropriate by the transportation agency.
6         (10) Compensation or payments to the transportation
7     agency, if any. Compensation or payments may include any or
8     a combination of the following:
9             (A) a concession or lease payment or other fee,
10         which may be payable upfront or on a periodic basis or
11         on another basis deemed appropriate by the
12         transportation agency;
13             (B) sharing of revenues, if any, from the operation
14         of the transportation project;
15             (C) sharing of project savings from the
16         construction of the transportation project;
17             (D) payment for any services, materials,
18         equipment, personnel, or other items provided by the
19         transportation agency to the contractor under the
20         public-private agreement or in connection with the
21         transportation project; or
22             (E) other compensation set forth in the
23         public-private agreement or otherwise deemed
24         appropriate by the transportation agency.
25         (11) The date and terms of termination of the
26     contractor's authority and duties under the public-private

 

 

SB3482 - 27 - LRB096 20595 AJT 36293 b

1     agreement and the circumstances under which the
2     contractor's authority and duties may be terminated prior
3     to that date.
4         (12) Reversion of the transportation project to the
5     transportation agency at the termination or expiration of
6     the public-private agreement.
7         (13) Rights and remedies of the transportation agency
8     in the event that the contractor defaults or otherwise
9     fails to comply with the terms of the public-private
10     agreement.
11         (14) Other terms, conditions, and provisions that the
12     transportation agency believes are in the public interest.
13     (c) The transportation agency may fix and revise the
14 amounts of user fees that a contractor may charge and collect
15 for the use of any part of a transportation project in
16 accordance with the public-private agreement. In fixing the
17 amounts, the transportation agency may establish maximum
18 amounts for the user fees and may provide that the maximums and
19 any increases or decreases of those maximums shall be based
20 upon the indices, methodologies, or other factors the
21 transportation agency considers appropriate.
22     (d) A public-private agreement may:
23         (1) authorize the imposition of tolls in any manner
24     determined appropriate by the transportation agency for
25     the transportation project;
26         (2) authorize the contractor to adjust the user fees

 

 

SB3482 - 28 - LRB096 20595 AJT 36293 b

1     for the use of the transportation project, so long as the
2     amounts charged and collected by the contractor do not
3     exceed the maximum amounts established by the
4     transportation agency under this Act;
5         (3) provide that any adjustment by the contractor
6     permitted under paragraph (2) of this subsection (d) may be
7     based on the indices, methodologies, or other factors
8     described in the public-private agreement or approved by
9     the transportation agency;
10         (4) authorize the contractor to charge and collect user
11     fees through manual and non-manual methods, including, but
12     not limited to, automatic vehicle identification systems,
13     electronic toll collection systems, and, to the extent
14     permitted by law, global positioning system-based,
15     photo-based, or video-based toll collection enforcement;
16     and
17         (5) authorize the collection of user fees by a third
18     party.
19     (e) In the public-private agreement, the transportation
20 agency may agree to make grants or loans for the development or
21 operation, or both, of the transportation project from time to
22 time from amounts received from the federal government or any
23 agency or instrumentality of the federal government or from any
24 State or local agency.
25     (f) Upon the termination or expiration of the
26 public-private agreement, including a termination for default,

 

 

SB3482 - 29 - LRB096 20595 AJT 36293 b

1 the transportation agency shall have the right to take over the
2 transportation project and to succeed to all of the right,
3 title, and interest in the transportation project, subject to
4 any liens on revenues previously granted by the contractor to
5 any person providing financing for the transportation project.
6     (g) If a transportation agency elects to take over a
7 transportation project as provided in subsection (f) of this
8 Section, the transportation agency may do the following:
9         (1) develop, finance, or operate the project,
10     including through a public-private agreement entered into
11     in accordance with this Act; or
12         (2) impose, collect, retain, and use user fees, if any,
13     for the project.
14     (h) If a transportation agency elects to take over a
15 transportation project as provided in subsection (f) of this
16 Section, the transportation agency may use the revenues, if
17 any, for any lawful purpose, including to:
18         (1) make payments to individuals or entities in
19     connection with any financing of the transportation
20     project, including through a public-private agreement
21     entered into in accordance with this Act;
22         (2) permit a contractor to receive some or all of the
23     revenues under a public-private agreement entered into
24     under this Act;
25         (3) pay development costs of the project;
26         (4) pay current operation costs of the project or

 

 

SB3482 - 30 - LRB096 20595 AJT 36293 b

1     facilities;
2         (5) pay the contractor for any compensation or payment
3     owing upon termination; and
4         (6) pay for the development, financing, or operation of
5     any other project or projects the transportation agency
6     deems appropriate.
7     (i) The full faith and credit of the State or any political
8 subdivision of the State or the transportation agency is not
9 pledged to secure any financing of the contractor by the
10 election to take over the transportation project. Assumption of
11 development or operation, or both, of the transportation
12 project does not obligate the State or any political
13 subdivision of the State or the transportation agency to pay
14 any obligation of the contractor.
15     (j) Notwithstanding any other provision of this Act, the
16 transportation agency may enter into a public-private
17 agreement with multiple approved proposers if the
18 transportation agency determines in writing that it is in the
19 public interest to do so.
20     (k) A public-private agreement shall not include any
21 provision under which the transportation agency agrees to
22 restrict or to provide compensation to the private entity for
23 the construction or operation of a competing transportation
24 facility during the term of the public-private agreement.
 
25     Section 40. Development and operations standards for

 

 

SB3482 - 31 - LRB096 20595 AJT 36293 b

1 transportation projects.
2     (a) The plans and specifications, if any, for each project
3 developed under this Act must comply with:
4         (1) the transportation agency's standards for other
5     projects of a similar nature or as otherwise provided in
6     the public-private agreement; and
7         (2) any other applicable State or federal standards.
8     (b) Each highway project constructed or operated under this
9 Act is considered to be part of:
10         (1) the State highway system for purposes of
11     identification, maintenance standards, and enforcement of
12     traffic laws if the highway project is under the
13     jurisdiction of the Department; or
14         (2) the toll highway system for purposes of
15     identification, maintenance standards, and enforcement of
16     traffic laws if the highway project is under the
17     jurisdiction of the Authority.
18     (c) Any unit of local government or State agency may enter
19 into agreements with the contractor for maintenance or other
20 services under this Act.
 
21     Section 45. Financial arrangements.
22     (a) The transportation agency may do any combination of
23 applying for, executing, or endorsing applications submitted
24 by private entities to obtain federal, State, or local credit
25 assistance for transportation projects developed, financed, or

 

 

SB3482 - 32 - LRB096 20595 AJT 36293 b

1 operated under this Act, including loans, lines of credit, and
2 guarantees.
3     (b) The transportation agency may take any action to obtain
4 federal, State, or local assistance for a transportation
5 project that serves the public purpose of this Act and may
6 enter into any contracts required to receive the federal
7 assistance. The transportation agency may determine that it
8 serves the public purpose of this Act for all or any portion of
9 the costs of a transportation project to be paid, directly or
10 indirectly, from the proceeds of a grant or loan, line of
11 credit, or loan guarantee made by a local, State, or federal
12 government or any agency or instrumentality of a local, State,
13 or federal government. Such assistance may include, but not be
14 limited to, federal credit assistance pursuant to the
15 Transportation Infrastructure Finance and Innovation Act
16 (TIFIA).
17     (c) The transportation agency may agree to make grants or
18 loans for the development, financing, or operation of a
19 transportation project from time to time, from amounts received
20 from the federal, State, or local government or any agency or
21 instrumentality of the federal, State, or local government.
22     (d) Any financing of a transportation project may be in the
23 amounts and upon the terms and conditions that are determined
24 by the parties to the public-private agreement.
25     (e) For the purpose of financing a transportation project,
26 the contractor and the transportation agency may do the

 

 

SB3482 - 33 - LRB096 20595 AJT 36293 b

1 following:
2         (1) propose to use any and all revenues that may be
3     available to them;
4         (2) enter into grant agreements;
5         (3) access any other funds available to the
6     transportation agency; and
7         (4) accept grants from the transportation agency or
8     other public or private agency or entity.
9     (f) For the purpose of financing a transportation project,
10 public funds may be used and mixed and aggregated with funds
11 provided by or on behalf of the contractor or other private
12 entities.
13     (g) For the purpose of financing a transportation project,
14 each transportation agency is authorized to do any combination
15 of applying for, executing, or endorsing applications for an
16 allocation of tax-exempt bond financing authorization provided
17 by Section 142(m) of the United States Internal Revenue Code,
18 as well as financing available under any other federal law or
19 program.
20     (h) Any bonds, debt, or other securities or other financing
21 issued for the purposes of this Act shall not be deemed to
22 constitute a debt of the State or any political subdivision of
23 the State or a pledge of the faith and credit of the State or
24 any political subdivision of the State.
 
25     Section 50. Acquisition of property.

 

 

SB3482 - 34 - LRB096 20595 AJT 36293 b

1     (a) The transportation agency may exercise any power of
2 condemnation or eminent domain, including quick-take powers,
3 that it has under law for the purpose of acquiring any lands or
4 estates or interests in land for a transportation project to
5 the extent provided in the public-private agreement or
6 otherwise to the extent that the transportation agency finds
7 that the action serves the public purpose of this Act and deems
8 it appropriate in the exercise of its powers under this Act.
9     (b) The transportation agency and a contractor may enter
10 into the leases, licenses, easements, and other grants of
11 property interests that the transportation agency determines
12 necessary to carry out this Act.
 
13     Section 55. Labor.
14     (a) A public-private agreement related to a transportation
15 project pertaining to an existing transportation facility
16 shall require the contractor to assume all existing collective
17 bargaining agreement obligations related to employees of the
18 transportation agency employed in relation to that facility.
19     (b) A public-private agreement related to a transportation
20 project pertaining to a new transportation facility shall
21 require the contractor to enter into a project labor agreement
22 that must include provisions establishing the minimum hourly
23 wage, benefits, and other compensation for each class of labor
24 organization employee and such other terms as are negotiated
25 between the contractor and the labor organizations.
 

 

 

SB3482 - 35 - LRB096 20595 AJT 36293 b

1     Section 60. Law enforcement.
2     (a) All law enforcement officers of the State and of each
3 affected local jurisdiction have the same powers and
4 jurisdiction within the limits of the transportation facility
5 as they have in their respective areas of jurisdiction.
6     (b) Law enforcement officers shall have access to the
7 transportation facility at any time for the purpose of
8 exercising the law enforcement officers' powers and
9 jurisdiction.
10     (c) The traffic and motor vehicle laws of the State of
11 Illinois or, if applicable, any local jurisdiction shall be the
12 same as those applying to conduct on similar projects in the
13 State of Illinois or the local jurisdiction.
14     (d) Punishment for infractions and offenses shall be as
15 prescribed by law for conduct occurring on similar projects in
16 the State of Illinois or the local jurisdiction.
 
17     Section 65. Term of agreement; reversion of property to
18 transportation agency.
19     (a) The term of a public-private agreement, including all
20 extensions, may not exceed 99 years.
21     (b) The transportation agency shall terminate the
22 contractor's authority and duties under the public-private
23 agreement on the date set forth in the public-private
24 agreement.

 

 

SB3482 - 36 - LRB096 20595 AJT 36293 b

1     (c) Upon termination of the public-private agreement, the
2 authority and duties of the contractor under this Act cease,
3 except for those duties and obligations that extend beyond the
4 termination, as set forth in the public-private agreement, and
5 all interests in the transportation facility shall revert to
6 the transportation agency.
 
7     Section 70. Additional powers of transportation agencies
8 with respect to transportation projects.
9     (a) Each transportation agency may exercise any powers
10 provided under this Act in participation or cooperation with
11 any governmental entity and enter into any contracts to
12 facilitate that participation or cooperation without
13 compliance with any other statute. Each transportation agency
14 shall cooperate with each other and with other governmental
15 entities in carrying out transportation projects under this
16 Act.
17     (b) Each transportation agency may make and enter into all
18 contracts and agreements necessary or incidental to the
19 performance of the transportation agency's duties and the
20 execution of the transportation agency's powers under this Act.
21 Except as otherwise required by law, these contracts or
22 agreements are not subject to any approvals other than the
23 approval of the transportation agency and may be for any term
24 of years and contain any terms that are considered reasonable
25 by the transportation agency.

 

 

SB3482 - 37 - LRB096 20595 AJT 36293 b

1     (c) Each transportation agency may pay the costs incurred
2 under a public-private agreement entered into under this Act
3 from any funds available to the transportation agency under
4 this Act or any other statute.
5     (d) A transportation agency or other State agency may not
6 take any action that would impair a public-private agreement
7 entered into under this Act.
8     (e) Each transportation agency may enter into an agreement
9 between and among the contractor, the transportation agency,
10 and the Department of State Police concerning the provision of
11 law enforcement assistance with respect to a transportation
12 project that is the subject of a public-private agreement under
13 this Act.
14     (f) Each transportation agency is authorized to enter into
15 arrangements with the Department of State Police related to
16 costs incurred in providing law enforcement assistance under
17 this Act.
 
18     Section 75. Prohibited local action. A unit of local
19 government may not take any action that would have the effect
20 of impairing a public-private agreement under this Act.
 
21     Section 80. Powers liberally construed. The powers
22 conferred by this Act shall be liberally construed in order to
23 accomplish their purposes and shall be in addition and
24 supplemental to the powers conferred by any other law. If any

 

 

SB3482 - 38 - LRB096 20595 AJT 36293 b

1 other law or rule is inconsistent with this Act, this Act is
2 controlling as to any public-private agreement entered into
3 under this Act.
 
4     Section 85. Full and complete authority. This Act contains
5 full and complete authority for agreements and leases with
6 private entities to carry out the activities described in this
7 Act. Except as otherwise required by law, no procedure,
8 proceedings, publications, notices, consents, approvals,
9 orders, or acts by the transportation agency or any other State
10 or local agency or official are required to enter into an
11 agreement or lease.
 
12     Section 905. The Department of Transportation Law of the
13 Civil Administrative Code of Illinois is amended by adding
14 Section 2705-220 as follows:
 
15     (20 ILCS 2705/2705-220 new)
16     Sec. 2705-220. Public-private partnerships for
17 transportation. The Department may exercise all powers granted
18 to it under the Public-Private Partnerships for Transportation
19 Act.
 
20     Section 910. The Illinois Finance Authority Act is amended
21 by adding Section 825-105 as follows:
 

 

 

SB3482 - 39 - LRB096 20595 AJT 36293 b

1     (20 ILCS 3501/825-105 new)
2     Sec. 825-105. Transportation project financing. For the
3 purpose of financing a transportation project undertaken under
4 the Public-Private Partnerships for Transportation Act, the
5 Authority is authorized to apply for an allocation of
6 tax-exempt bond financing authorization provided by Section
7 142(m) of the United States Internal Revenue Code, as well as
8 financing available under any other federal law or program.
 
9     Section 915. The Illinois Procurement Code is amended by
10 changing Section 1-10 as follows:
 
11     (30 ILCS 500/1-10)
12     Sec. 1-10. Application.
13     (a) This Code applies only to procurements for which
14 contractors were first solicited on or after July 1, 1998. This
15 Code shall not be construed to affect or impair any contract,
16 or any provision of a contract, entered into based on a
17 solicitation prior to the implementation date of this Code as
18 described in Article 99, including but not limited to any
19 covenant entered into with respect to any revenue bonds or
20 similar instruments. All procurements for which contracts are
21 solicited between the effective date of Articles 50 and 99 and
22 July 1, 1998 shall be substantially in accordance with this
23 Code and its intent.
24     (b) This Code shall apply regardless of the source of the

 

 

SB3482 - 40 - LRB096 20595 AJT 36293 b

1 funds with which the contracts are paid, including federal
2 assistance moneys. This Code shall not apply to:
3         (1) Contracts between the State and its political
4     subdivisions or other governments, or between State
5     governmental bodies except as specifically provided in
6     this Code.
7         (2) Grants, except for the filing requirements of
8     Section 20-80.
9         (3) Purchase of care.
10         (4) Hiring of an individual as employee and not as an
11     independent contractor, whether pursuant to an employment
12     code or policy or by contract directly with that
13     individual.
14         (5) Collective bargaining contracts.
15         (6) Purchase of real estate, except that notice of this
16     type of contract with a value of more than $25,000 must be
17     published in the Procurement Bulletin within 7 days after
18     the deed is recorded in the county of jurisdiction. The
19     notice shall identify the real estate purchased, the names
20     of all parties to the contract, the value of the contract,
21     and the effective date of the contract.
22         (7) Contracts necessary to prepare for anticipated
23     litigation, enforcement actions, or investigations,
24     provided that the chief legal counsel to the Governor shall
25     give his or her prior approval when the procuring agency is
26     one subject to the jurisdiction of the Governor, and

 

 

SB3482 - 41 - LRB096 20595 AJT 36293 b

1     provided that the chief legal counsel of any other
2     procuring entity subject to this Code shall give his or her
3     prior approval when the procuring entity is not one subject
4     to the jurisdiction of the Governor.
5         (8) Contracts for services to Northern Illinois
6     University by a person, acting as an independent
7     contractor, who is qualified by education, experience, and
8     technical ability and is selected by negotiation for the
9     purpose of providing non-credit educational service
10     activities or products by means of specialized programs
11     offered by the university.
12         (9) Procurement expenditures by the Illinois
13     Conservation Foundation when only private funds are used.
14         (10) Public-private agreements entered into according
15     to the procurement requirements of Section 20 of the
16     Public-Private Partnerships for Transportation Act.
17     (c) This Code does not apply to the electric power
18 procurement process provided for under Section 1-75 of the
19 Illinois Power Agency Act and Section 16-111.5 of the Public
20 Utilities Act.
21     (d) Except for Section 20-160 and Article 50 of this Code,
22 and as expressly required by Section 9.1 of the Illinois
23 Lottery Law, the provisions of this Code do not apply to the
24 procurement process provided for under Section 9.1 of the
25 Illinois Lottery Law.
26 (Source: P.A. 95-481, eff. 8-28-07; 95-615, eff. 9-11-07;

 

 

SB3482 - 42 - LRB096 20595 AJT 36293 b

1 95-876, eff. 8-21-08; 96-840, eff. 12-23-09.)
 
2     Section 920. The State Finance Act is amended by adding
3 Sections 5.755 and 6z-79 as follows:
 
4     (30 ILCS 105/5.755 new)
5     Sec. 5.755. The Public-Private Partnerships for
6 Transportation Fund.
 
7     (30 ILCS 105/6z-79 new)
8     Sec. 6z-79. The Public-Private Partnerships for
9 Transportation Fund. The Public-Private Partnerships for
10 Transportation Fund is created as a special fund in the State
11 treasury. Subject to appropriation, all money in the
12 Public-Private Partnerships for Transportation Fund must be
13 used by the Illinois Department of Transportation or the
14 Illinois State Toll Highway Authority to supplement funding, as
15 directed in the appropriation, for transportation projects in
16 the State. Any interest earned on money in the Public-Private
17 Partnerships for Transportation Fund must be deposited into the
18 Public-Private Partnerships for Transportation Fund.
 
19     Section 925. The Public Construction Bond Act is amended by
20 adding Section 1.5 as follows:
 
21     (30 ILCS 550/1.5 new)

 

 

SB3482 - 43 - LRB096 20595 AJT 36293 b

1     Sec. 1.5. Public-private agreements. This Act applies to
2 any public-private agreement entered into under the
3 Public-Private Partnerships for Transportation Act.
 
4     Section 930. The Public Works Preference Act is amended by
5 adding Section 4.5 as follows:
 
6     (30 ILCS 560/4.5 new)
7     Sec. 4.5. Public-private agreements. This Act applies to
8 any public-private agreement entered into under the
9 Public-Private Partnerships for Transportation Act.
 
10     Section 935. The Employment of Illinois Workers on Public
11 Works Act is amended by adding Section 2.5 as follows:
 
12     (30 ILCS 570/2.5 new)
13     Sec. 2.5. Public-private agreements. This Act applies to
14 any public-private agreement entered into under the
15 Public-Private Partnerships for Transportation Act.
 
16     Section 940. The Business Enterprise for Minorities,
17 Females, and Persons with Disabilities Act is amended by adding
18 Section 2.5 as follows:
 
19     (30 ILCS 575/2.5 new)
20     Sec. 2.5. Public-private agreements. This Act applies to

 

 

SB3482 - 44 - LRB096 20595 AJT 36293 b

1 any public-private agreement entered into under the
2 Public-Private Partnerships for Transportation Act.
 
3     Section 945. The Retailers' Occupation Tax Act is amended
4 by adding Section 1q as follows:
 
5     (35 ILCS 120/1q new)
6     Sec. 1q. Building materials exemption; public-private
7 partnership transportation projects.
8     (a) Each retailer that makes a qualified sale of building
9 materials to be incorporated into a "project" as defined in the
10 Public-Private Partnerships for Transportation Act, by
11 remodeling, rehabilitating, or new construction, may deduct
12 receipts from those sales when calculating the tax imposed by
13 this Act.
14     (b) As used in this Section, "qualified sale" means a sale
15 of building materials that will be incorporated into a project
16 for which a Certificate of Eligibility for Sales Tax Exemption
17 has been issued by the agency having authority over the
18 project.
19     (c) To document the exemption allowed under this Section,
20 the retailer must obtain from the purchaser a copy of the
21 Certificate of Eligibility for Sales Tax Exemption issued by
22 the agency having jurisdiction over the project into which the
23 building materials will be incorporated is located. The
24 Certificate of Eligibility for Sales Tax Exemption must contain

 

 

SB3482 - 45 - LRB096 20595 AJT 36293 b

1 all of the following:
2         (1) statement that the project identified in the
3     Certificate meets all the requirements of the agency having
4     authority over the project;
5         (2) the location or address of the project; and
6         (3) the signature of the director of the agency with
7     authority over the project or the director's delegate.
8     (d) In addition to meeting the requirements of subsection
9 (c) of this Act, the retailer must obtain a certificate from
10 the purchaser that contains all of the following:
11         (1) a statement that the building materials are being
12     purchased for incorporation into a project in accordance
13     with the Public-Private Partnerships for Transportation
14     Act;
15         (2) the location or address of the project into which
16     the building materials will be incorporated;
17         (3) the name of the project;
18         (4) a description of the building materials being
19     purchased; and
20         (5) the purchaser's signature and date of purchase.
21     (e) This Section is exempt from Section 2-70 of this Act.
 
22     Section 950. The Property Tax Code is amended by changing
23 Section 15-55 and by adding Section 15-195 as follows:
 
24     (35 ILCS 200/15-55)

 

 

SB3482 - 46 - LRB096 20595 AJT 36293 b

1     Sec. 15-55. State property.
2     (a) All property belonging to the State of Illinois is
3 exempt. However, the State agency holding title shall file the
4 certificate of ownership and use required by Section 15-10,
5 together with a copy of any written lease or agreement, in
6 effect on March 30 of the assessment year, concerning parcels
7 of 1 acre or more, or an explanation of the terms of any oral
8 agreement under which the property is leased, subleased or
9 rented.
10     The leased property shall be assessed to the lessee and the
11 taxes thereon extended and billed to the lessee, and collected
12 in the same manner as for property which is not exempt. The
13 lessee shall be liable for the taxes and no lien shall attach
14 to the property of the State.
15     For the purposes of this Section, the word "leases"
16 includes licenses, franchises, operating agreements and other
17 arrangements under which private individuals, associations or
18 corporations are granted the right to use property of the
19 Illinois State Toll Highway Authority and includes all property
20 of the Authority used by others without regard to the size of
21 the leased parcel.
22     (b) However, all property of every kind belonging to the
23 State of Illinois, which is or may hereafter be leased to the
24 Illinois Prairie Path Corporation, shall be exempt from all
25 assessments, taxation or collection, despite the making of any
26 such lease, if it is used for:

 

 

SB3482 - 47 - LRB096 20595 AJT 36293 b

1         (1) conservation, nature trail or any other
2     charitable, scientific, educational or recreational
3     purposes with public benefit, including the preserving and
4     aiding in the preservation of natural areas, objects,
5     flora, fauna or biotic communities;
6         (2) the establishment of footpaths, trails and other
7     protected areas;
8         (3) the conservation of the proper use of natural
9     resources or the promotion of the study of plant and animal
10     communities and of other phases of ecology, natural history
11     and conservation;
12         (4) the promotion of education in the fields of nature,
13     preservation and conservation; or
14         (5) similar public recreational activities conducted
15     by the Illinois Prairie Path Corporation.
16     No lien shall attach to the property of the State. No tax
17 liability shall become the obligation of or be enforceable
18 against Illinois Prairie Path Corporation.
19     (c) If the State sells the James R. Thompson Center or the
20 Elgin Mental Health Center and surrounding land located at 750
21 S. State Street, Elgin, Illinois, as provided in subdivision
22 (a)(2) of Section 7.4 of the State Property Control Act, to
23 another entity whose property is not exempt and immediately
24 thereafter enters into a leaseback or other agreement that
25 directly or indirectly gives the State a right to use, control,
26 and possess the property, that portion of the property leased

 

 

SB3482 - 48 - LRB096 20595 AJT 36293 b

1 and occupied exclusively by the State shall remain exempt under
2 this Section. For the property to remain exempt under this
3 subsection (c), the State must retain an option to purchase the
4 property at a future date or, within the limitations period for
5 reverters, the property must revert back to the State.
6     If the property has been conveyed as described in this
7 subsection (c), the property is no longer exempt pursuant to
8 this Section as of the date when:
9         (1) the right of the State to use, control, and possess
10     the property has been terminated; or
11         (2) the State no longer has an option to purchase or
12     otherwise acquire the property and there is no provision
13     for a reverter of the property to the State within the
14     limitations period for reverters.
15     Pursuant to Sections 15-15 and 15-20 of this Code, the
16 State shall notify the chief county assessment officer of any
17 transaction under this subsection (c). The chief county
18 assessment officer shall determine initial and continuing
19 compliance with the requirements of this Section for tax
20 exemption. Failure to notify the chief county assessment
21 officer of a transaction under this subsection (c) or to
22 otherwise comply with the requirements of Sections 15-15 and
23 15-20 of this Code shall, in the discretion of the chief county
24 assessment officer, constitute cause to terminate the
25 exemption, notwithstanding any other provision of this Code.
26     (c-1) If the Illinois State Toll Highway Authority sells

 

 

SB3482 - 49 - LRB096 20595 AJT 36293 b

1 the Illinois State Toll Highway Authority headquarters
2 building and surrounding land, located at 2700 Ogden Avenue,
3 Downers Grove, Illinois as provided in subdivision (a)(2) of
4 Section 7.5 of the State Property Control Act, to another
5 entity whose property is not exempt and immediately thereafter
6 enters into a leaseback or other agreement that directly or
7 indirectly gives the State or the Illinois State Toll Highway
8 Authority a right to use, control, and possess the property,
9 that portion of the property leased and occupied exclusively by
10 the State or the Authority shall remain exempt under this
11 Section. For the property to remain exempt under this
12 subsection (c), the Authority must retain an option to purchase
13 the property at a future date or, within the limitations period
14 for reverters, the property must revert back to the Authority.
15     If the property has been conveyed as described in this
16 subsection (c), the property is no longer exempt pursuant to
17 this Section as of the date when:
18         (1) the right of the State or the Authority to use,
19     control, and possess the property has been terminated; or
20         (2) the Authority no longer has an option to purchase
21     or otherwise acquire the property and there is no provision
22     for a reverter of the property to the Authority within the
23     limitations period for reverters.
24     Pursuant to Sections 15-15 and 15-20 of this Code, the
25 Authority shall notify the chief county assessment officer of
26 any transaction under this subsection (c). The chief county

 

 

SB3482 - 50 - LRB096 20595 AJT 36293 b

1 assessment officer shall determine initial and continuing
2 compliance with the requirements of this Section for tax
3 exemption. Failure to notify the chief county assessment
4 officer of a transaction under this subsection (c) or to
5 otherwise comply with the requirements of Sections 15-15 and
6 15-20 of this Code shall, in the discretion of the chief county
7 assessment officer, constitute cause to terminate the
8 exemption, notwithstanding any other provision of this Code.
9     (d) The fair market rent of each parcel of real property in
10 Will County owned by the State of Illinois for the purpose of
11 developing an airport by the Department of Transportation shall
12 include the assessed value of leasehold tax. The lessee of each
13 parcel of real property in Will County owned by the State of
14 Illinois for the purpose of developing an airport by the
15 Department of Transportation shall not be liable for the taxes
16 thereon. In order for the State to compensate taxing districts
17 for the leasehold tax under this paragraph the Will County
18 Supervisor of Assessments shall certify, in writing, to the
19 Department of Transportation, the amount of leasehold taxes
20 extended for the 2002 property tax year for each such exempt
21 parcel. The Department of Transportation shall pay to the Will
22 County Treasurer, from the Tax Recovery Fund, on or before July
23 1 of each year, the amount of leasehold taxes for each such
24 exempt parcel as certified by the Will County Supervisor of
25 Assessments. The tax compensation shall terminate on December
26 31, 2020. It is the duty of the Department of Transportation to

 

 

SB3482 - 51 - LRB096 20595 AJT 36293 b

1 file with the Office of the Will County Supervisor of
2 Assessments an affidavit stating the termination date for
3 rental of each such parcel due to airport construction. The
4 affidavit shall include the property identification number for
5 each such parcel. In no instance shall tax compensation for
6 property owned by the State be deemed delinquent or bear
7 interest. In no instance shall a lien attach to the property of
8 the State. In no instance shall the State be required to pay
9 leasehold tax compensation in excess of the Tax Recovery Fund's
10 balance.
11     (e) Public Act 81-1026 applies to all leases or agreements
12 entered into or renewed on or after September 24, 1979.
13     (f) Notwithstanding anything to the contrary in this
14 Section, all property owned by the State or the Illinois State
15 Toll Highway Authority that is defined as a transportation
16 project under the Public-Private Partnerships for
17 Transportation Act and that is used for transportation purposes
18 and that is leased for those purposes to another entity whose
19 property is not exempt shall remain exempt, and any leasehold
20 interest in the property shall not be subject to taxation under
21 Section 9-195 of this Act.
22 (Source: P.A. 95-331, eff. 8-21-07; 96-192, eff. 8-10-09.)
 
23     (35 ILCS 200/15-195 new)
24     Sec. 15-195. Exemption for qualified airport leased
25 property. Notwithstanding anything in this Code to the

 

 

SB3482 - 52 - LRB096 20595 AJT 36293 b

1 contrary, all property owned by an airport authority created
2 and established under the Airport Authorities Act shall remain
3 exempt from taxation and any leasehold interest in that
4 property is not subject to taxation under Section 9-195 if that
5 property is used for transportation purposes as part of a
6 transportation project undertaken pursuant to Public-Private
7 Partnerships for Transportation Act and is leased to another
8 entity whose property is not exempt.
 
9     Section 955. The Toll Highway Act is amended by adding
10 Section 11.1 as follows:
 
11     (605 ILCS 10/11.1 new)
12     Sec. 11.1. Public-private partnerships. The Authority may
13 exercise all powers granted to it under the Public-Private
14 Partnerships for Transportation Act.
 
15     Section 965. The Prevailing Wage Act is amended by changing
16 Section 2 as follows:
 
17     (820 ILCS 130/2)  (from Ch. 48, par. 39s-2)
18     Sec. 2. This Act applies to the wages of laborers,
19 mechanics and other workers employed in any public works, as
20 hereinafter defined, by any public body and to anyone under
21 contracts for public works. This includes any maintenance,
22 repair, assembly, or disassembly work performed on equipment

 

 

SB3482 - 53 - LRB096 20595 AJT 36293 b

1 whether owned, leased, or rented.
2     As used in this Act, unless the context indicates
3 otherwise:
4     "Public works" means all fixed works constructed or
5 demolished by any public body, or paid for wholly or in part
6 out of public funds. "Public works" as defined herein includes
7 all projects financed in whole or in part with bonds, grants,
8 loans, or other funds made available by or through the State or
9 any of its political subdivisions, including but not limited
10 to: bonds issued under the Industrial Project Revenue Bond Act
11 (Article 11, Division 74 of the Illinois Municipal Code), the
12 Industrial Building Revenue Bond Act, the Illinois Finance
13 Authority Act, the Illinois Sports Facilities Authority Act, or
14 the Build Illinois Bond Act; loans or other funds made
15 available pursuant to the Build Illinois Act; or funds from the
16 Fund for Illinois' Future under Section 6z-47 of the State
17 Finance Act, funds for school construction under Section 5 of
18 the General Obligation Bond Act, funds authorized under Section
19 3 of the School Construction Bond Act, funds for school
20 infrastructure under Section 6z-45 of the State Finance Act,
21 and funds for transportation purposes under Section 4 of the
22 General Obligation Bond Act. "Public works" also includes all
23 projects financed in whole or in part with funds from the
24 Department of Commerce and Economic Opportunity under the
25 Illinois Renewable Fuels Development Program Act for which
26 there is no project labor agreement and (ii) all projects

 

 

SB3482 - 54 - LRB096 20595 AJT 36293 b

1 undertaken under a public-private agreement under the
2 Public-Private Partnerships for Transportation Act. "Public
3 works" also includes all projects at leased facility property
4 used for airport purposes under Section 35 of the Local
5 Government Facility Lease Act. "Public works" also includes the
6 construction of a new wind power facility by a business
7 designated as a High Impact Business under Section 5.5(a)(3)(E)
8 of the Illinois Enterprise Zone Act. "Public works" does not
9 include work done directly by any public utility company,
10 whether or not done under public supervision or direction, or
11 paid for wholly or in part out of public funds. "Public works"
12 does not include projects undertaken by the owner at an
13 owner-occupied single-family residence or at an owner-occupied
14 unit of a multi-family residence.
15     "Construction" means all work on public works involving
16 laborers, workers or mechanics. This includes any maintenance,
17 repair, assembly, or disassembly work performed on equipment
18 whether owned, leased, or rented.
19     "Locality" means the county where the physical work upon
20 public works is performed, except (1) that if there is not
21 available in the county a sufficient number of competent
22 skilled laborers, workers and mechanics to construct the public
23 works efficiently and properly, "locality" includes any other
24 county nearest the one in which the work or construction is to
25 be performed and from which such persons may be obtained in
26 sufficient numbers to perform the work and (2) that, with

 

 

SB3482 - 55 - LRB096 20595 AJT 36293 b

1 respect to contracts for highway work with the Department of
2 Transportation of this State, "locality" may at the discretion
3 of the Secretary of the Department of Transportation be
4 construed to include two or more adjacent counties from which
5 workers may be accessible for work on such construction.
6     "Public body" means the State or any officer, board or
7 commission of the State or any political subdivision or
8 department thereof, or any institution supported in whole or in
9 part by public funds, and includes every county, city, town,
10 village, township, school district, irrigation, utility,
11 reclamation improvement or other district and every other
12 political subdivision, district or municipality of the state
13 whether such political subdivision, municipality or district
14 operates under a special charter or not.
15     The terms "general prevailing rate of hourly wages",
16 "general prevailing rate of wages" or "prevailing rate of
17 wages" when used in this Act mean the hourly cash wages plus
18 fringe benefits for training and apprenticeship programs
19 approved by the U.S. Department of Labor, Bureau of
20 Apprenticeship and Training, health and welfare, insurance,
21 vacations and pensions paid generally, in the locality in which
22 the work is being performed, to employees engaged in work of a
23 similar character on public works.
24 (Source: P.A. 95-341, eff. 8-21-07; 96-28, eff. 7-1-09; 96-58,
25 eff. 1-1-10; 96-186, eff. 1-1-10; revised 8-20-09.)
 
26     Section 999. Effective date. This Act takes effect upon

 

 

SB3482 - 56 - LRB096 20595 AJT 36293 b

1 becoming law.

 

 

SB3482 - 57 - LRB096 20595 AJT 36293 b

1 INDEX
2 Statutes amended in order of appearance
3     New Act
4     20 ILCS 2705/2705-220 new
5     20 ILCS 3501/825-105 new
6     30 ILCS 500/1-10
7     30 ILCS 105/5.755 new
8     30 ILCS 105/6z-79 new
9     30 ILCS 550/1.5 new
10     30 ILCS 560/4.5 new
11     30 ILCS 570/2.5 new
12     30 ILCS 575/2.5 new
13     35 ILCS 120/1q new
14     35 ILCS 200/15-55
15     35 ILCS 200/15-195 new
16     605 ILCS 10/11.1 new
17     820 ILCS 130/2 from Ch. 48, par. 39s-2