Illinois General Assembly - Full Text of HB3728
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Full Text of HB3728  98th General Assembly




State of Illinois
2013 and 2014


Introduced , by Rep. Robert Rita


70 ILCS 210/5.4

    Amends the Metropolitan Pier and Exposition Authority Act. Provides that an exhibitor shall not be required to utilize the services of the contractor selected by the show manager or show contractor on behalf of a show manager. Provides that an exhibitor may retain any contractor approved by the Authority to provide electrical, plumbing, or pipefitting services on the premises. Provides that house electricians are responsible for energizing the floor ports and bus ducts for energy requirements of 60 amps and above. Provides that the use of the house sound system and audio-visual equipment in meeting rooms shall be provided free of charge. Effective immediately.

LRB098 14614 JLK 49413 b






HB3728LRB098 14614 JLK 49413 b

1    AN ACT concerning local government.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Metropolitan Pier and Exposition Authority
5Act is amended by changing Section 5.4 as follows:
6    (70 ILCS 210/5.4)
7    Sec. 5.4. Exhibitor rights and work rule reforms.
8(a) Legislative findings.
9        (1) The Authority is a political subdivision of the
10    State of Illinois subject to the plenary authority of the
11    General Assembly and was created for the benefit of the
12    general public to promote business, industry, commerce,
13    and tourism within the City of Chicago and the State of
14    Illinois.
15        (2) The Authority owns and operates McCormick Place and
16    Navy Pier, which have collectively 2.8 million square feet
17    of exhibit hall space, 700,000 square feet of meeting room
18    space.
19        (3) The Authority is a vital economic engine that
20    annually generates 65,000 jobs and $8 billion of economic
21    activity for the State of Illinois through the trade shows,
22    conventions, and other meetings held and attended at



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1    McCormick Place and Navy Pier.
2        (4) The Authority supports the operation of McCormick
3    Place and Navy Pier through not only fees on the rental of
4    exhibit and meeting room space, electrical and utility
5    service, food and beverage services, and parking, but also
6    hotel room rates paid by persons staying at the
7    Authority-owned hotel.
8        (5) The Authority has a compelling and proprietary
9    interest in the success, competitiveness, and continued
10    viability of McCormick Place and Navy Pier as the owner and
11    operator of the convention facilities and its obligation to
12    ensure that these facilities produce sufficient operating
13    revenues.
14        (6) The Authority's convention facilities were
15    constructed and renovated through the issuance of public
16    bonds that are directly repaid by State hotel, auto rental,
17    food and beverage, and airport and departure taxes paid
18    principally by persons who attend, work at, exhibit, and
19    provide goods and services to conventions, shows,
20    exhibitions, and meetings at McCormick Place and Navy Pier.
21        (7) State law also dedicates State occupation and use
22    tax revenues to fulfill debt service obligations on these
23    bonds should State hotel, auto rental, food and beverage,
24    and airport and departure taxes fail to generate sufficient
25    revenue.
26        (8) Through fiscal year 2010, $55 million in State



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1    occupation and use taxes will have been allocated to make
2    debt service payments on the Authority's bonds due to
3    shortfalls in State hotel, auto rental, food and beverage,
4    and airport and departure taxes. These shortfalls are
5    expected to continue in future fiscal years and would
6    require the annual dedication of approximately $40 million
7    in State occupation and use taxes to fulfill debt service
8    payments.
9        (9) In 2009, managers of the International Plastics
10    Showcase announced that 2009 was the last year they would
11    host their exhibition at McCormick Place, as they had since
12    1971, because union labor work rules and electric and food
13    service costs make it uneconomical for the show managers
14    and exhibitors to use McCormick Place as a convention venue
15    as compared to convention facilities in Orlando, Florida
16    and Las Vegas, Nevada. The exhibition used over 740,000
17    square feet of exhibit space, attracted over 43,000
18    attendees, generated $4.8 million of revenues to McCormick
19    Place, and raised over $200,000 in taxes to pay debt
20    service on convention facility bonds.
21        (10) After the International Plastics Showcase
22    exhibition announced its departure, other conventions and
23    exhibitions managers and exhibitors also stated that they
24    would not return to McCormick Place and Navy Pier for the
25    same reasons cited by the International Plastics Showcase
26    exhibition. In addition, still other managers and



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1    exhibitors stated that they would not select McCormick
2    Place as a convention venue unless the union labor work
3    rules and electrical and food service costs were made
4    competitive with those in Orlando and Las Vegas.
5        (11) The General Assembly created the Joint Committee
6    on the Metropolitan Pier and Exposition Authority to
7    conduct hearings and obtain facts to determine how union
8    labor work rules and electrical and food service costs make
9    McCormick Place and Navy Pier uneconomical as a convention
10    venue.
11        (12) Witness testimony and fact-gathering revealed
12    that while the skilled labor provided by trade unions at
13    McCormick Place and Navy Pier is second to none and is
14    actually "exported" to work on conventions and exhibitions
15    held in Orlando and Las Vegas, restrictive work rules on
16    the activities show exhibitors may perform present
17    exhibitors and show managers with an uninviting atmosphere
18    and result in significantly higher costs than competing
19    convention facilities.
20        (13) Witness testimony and fact-gathering also
21    revealed that the mark-up on electrical and food service
22    imposed by the Authority to generate operating revenue for
23    McCormick Place and Navy Pier also substantially increased
24    exhibitor and show organizer costs to the point of excess
25    when compared to competing convention facilities.
26        (14) Witness testimony and fact-gathering further



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1    revealed that the additional departure of conventions,
2    exhibitions, and trade shows from Authority facilities
3    threatens the continued economic viability of these
4    facilities and the stability of sufficient tax revenues
5    necessary to support debt service.
6        (15) In order to safeguard the Authority's and State of
7    Illinois' shared compelling and proprietary interests in
8    McCormick Place and Navy Pier and in response to local
9    economic needs, the provisions contained in this Section
10    set forth mandated changes and reforms to restore and
11    ensure that (i) the Authority's facilities remain
12    economically competitive with other convention venues and
13    (ii) conventions, exhibitions, trade shows, and other
14    meetings are attracted to and retained at Authority
15    facilities by producing an exhibitor-friendly environment
16    and by reducing costs for exhibitors and show managers.
17        (16) The provisions set forth in this Section are
18    reasonable, necessary, and narrowly tailored to safeguard
19    the Authority's and State of Illinois' shared and
20    compelling proprietary interests and respond to local
21    economic needs as compared to the available alternative set
22    forth in House Bill 4900 of the 96th General Assembly and
23    proposals submitted to the Joint Committee on the
24    Metropolitan Pier and Exposition Authority. Action by the
25    State offers the only comprehensive means to remedy the
26    circumstances set forth in these findings, despite the



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1    concerted and laudable voluntary efforts of the Authority,
2    labor unions, show contractors, show managers, and
3    exhibitors.
4(b) Definitions. As used in this Section:
5        "Booth" means the demarcated exhibit space of an
6    exhibitor on Authority premises.
7        "Contractor" or "show contractor" means any person who
8    contracts with the Authority, an exhibitor, or with the
9    manager of a show to provide any services related to
10    drayage, rigging, carpentry, decorating, electrical,
11    plumbing, pipefitting, maintenance, mechanical, and food
12    and beverage services or related trades and duties for
13    shows on Authority premises.
14        "Exhibitor" or "show exhibitor" means any person who
15    contracts with the Authority or with a manager or
16    contractor of a show held or to be held on Authority
17    premises.
18        "Exhibitor employee" means any person who has been
19    employed by the exhibitor as a full-time employee for a
20    minimum of 6 months before the show's opening date.
21        "Hand tools" means cordless tools, power tools, and
22    other tools as determined by the Authority.
23        "Licensee" means any entity that uses the Authority's
24    premises.
25        "Manager" or "show manager" means any person that owns



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1    or manages a show held or to be held on Authority premises.
2        "Personally owned vehicles" means the vehicles owned
3    by show exhibitors or the show management, excluding
4    commercially registered trucks, vans, and other vehicles
5    as determined by the Authority.
6        "Premises" means grounds, buildings, and facilities of
7    the Authority.
8        "Show" means a convention, exposition, trade show,
9    event, or meeting held on Authority premises by a show
10    manager or show contractor on behalf of a show manager.
11        "2011 Settlement Agreement" means the agreement that
12    the Authority made and entered into with the Chicago
13    Regional Council of Carpenters, not including any
14    revisions or amendments, and filed with the Illinois
15    Secretary of State Index Department and designated as
16    97-GA-A01.
17        "Union employees" means workers represented by a labor
18    organization, as defined in the National Labor Relations
19    Act, providing skilled labor services to exhibitors, a show
20    manager, or a show contractor on Authority premises.
21(c) Exhibitor rights.
22        In order to control costs, increase the
23    competitiveness, and promote and provide for the economic
24    stability of Authority premises, all Authority contracts
25    with exhibitors, contractors, and managers shall include



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1    the following minimum terms and conditions:
2        (1) Consistent with safety and the skills and training
3    necessary to perform the task, as determined by the
4    Authority, an exhibitor and exhibitor employees are
5    permitted in a booth of any size with the use of the
6    exhibitor's ladders and hand tools to:
7            (i) set-up and dismantle exhibits displayed on
8        Authority premises;
9            (ii) assemble and disassemble materials,
10        machinery, or equipment on Authority premises; and
11            (iii) install all signs, graphics, props,
12        balloons, other decorative items, and the exhibitor's
13        own drapery, including the skirting of exhibitor
14        tables, on the Authority's premises.
15        (2) An exhibitor and exhibitor employees are permitted
16    in a booth of any size to deliver, set-up, plug in,
17    interconnect, and operate an exhibitor's electrical
18    equipment, computers, audio-visual devices, and other
19    equipment.
20        (3) An exhibitor and exhibitor employees are permitted
21    in a booth of any size to skid, position, and re-skid all
22    exhibitor material, machinery, and equipment on Authority
23    premises.
24        (4) An exhibitor and exhibitor employees are
25    prohibited at any time from using scooters, forklifts,
26    pallet jacks, condors, scissors lifts, motorized dollies,



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



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1    wages plus fringe benefits along with a reasonable mark-up;
2    provided, however, that between the hours of midnight and
3    6:00 a.m. a show manager or contractor shall charge an
4    exhibitor only for labor services provided by union
5    employees based on double straight-time wages plus fringe
6    benefits along with a reasonable mark-up.
7        (8) (Blank).
8        (9) (Blank).
9        (10) (Blank).
10        (11) (Blank).
11        (12) The Authority has the power to determine, after
12    consultation with the Advisory Council, the work
13    jurisdiction and scope of work of union employees on
14    Authority premises during the move-in, move-out, and run of
15    a show, provided that any affected labor organization may
16    contest the Authority's determination through a binding
17    decision of an independent, third-party arbitrator. When
18    making the determination, the Authority or arbitrator, as
19    the case may be, shall consider the training and skills
20    required to perform the task, past practices on Authority
21    premises, safety, and the need for efficiency and exhibitor
22    satisfaction. These factors shall be considered in their
23    totality and not in isolation. The Authority's
24    determination must be made in writing, set forth an
25    explanation and statement of the reason or reasons
26    supporting the determination, and be provided to each



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1    affected labor organization. The changes in this item (12)
2    by this amendatory Act of the 97th General Assembly are
3    declarative of existing law and shall not be construed as a
4    new enactment. Nothing in this item permits the Authority
5    to eliminate any labor organization representing union
6    employees that provide labor services on the move-in,
7    move-out, and run of the show as of the effective date of
8    this amendatory Act of the 96th General Assembly.
9        (13) (Blank).
10        (14) An exhibitor or show manager may request by name
11    specific union employees to provide labor services on
12    Authority premises consistent with all State and federal
13    laws. Union employees requested by an exhibitor shall take
14    priority over union employees requested by a show manager.
15        (15) A show manager or show contractor on behalf of a
16    show manager may retain an electrical contractor approved
17    by the Authority or Authority-provisioned electrical
18    services to provide electrical services on the premises. If
19    a show manager or show contractor on behalf of a show
20    manager retains Authority-provisioned electrical services,
21    then the Authority shall offer these services at a rate not
22    to exceed the cost of providing those services. An
23    exhibitor shall not be required to utilize the services of
24    the contractor selected by the show manager or show
25    contractor on behalf of a show manager under this item. An
26    exhibitor may retain any contractor approved by the



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1    Authority to provide electrical, plumbing, or pipefitting
2    services on the premises. Notwithstanding any other
3    provision of law, the house electricians employed by the
4    Authority are responsible for energizing the floor ports
5    and bus ducts for energy requirements of 60 amps and above.
6    It is the responsibility of the exhibitor-appointed
7    electrical contractors to contact the house electricians
8    to energize those floor ports and bus ducts.
9        (15-5) The use of the house sound system and
10    audio-visual equipment in the meeting rooms shall be
11    provided free of charge.
12        (16) Crew sizes for any task or operation shall not
13    exceed 2 persons unless, after consultation with the
14    Advisory Council, the Authority determines otherwise based
15    on the task, skills, and training required to perform the
16    task and on safety.
17        (17) An exhibitor may bring food and beverages on the
18    premises of the Authority for personal consumption.
19        (18) Show managers and contractors shall comply with
20    any audit performed under subsection (e) of this Section.
21        (19) A show manager or contractor shall charge an
22    exhibitor only for labor services provided by union
23    employees on Authority premises on a minimum half-hour
24    basis.
25    The Authority has the power to implement, enforce, and
26administer the exhibitor rights set forth in this subsection,



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



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1    The Authority shall retain the services of a person to
2complete, at least once per calendar year, a financial
3statement audit and compliance attestation engagement that may
4consist of an examination or an agreed-upon procedures
5engagement that, in the opinion of the licensed public
6accounting firm selected by the Authority in accordance with
7the provisions of this Act and with the concurrence of the
8Authority, is better suited to determine and verify compliance
9with the exhibitor rights set forth in this Section, and that
10cost reductions or other efficiencies resulting from the
11exhibitor rights have been fairly passed along to exhibitors.
12In the event an agreed-upon procedures engagement is performed,
13the Authority shall first consult with the Advisory Committee
14and solicit its suggestions and advice with respect to the
15specific procedures to be agreed upon in the engagement.
16Thereafter, the public accounting firm and the Authority shall
17agree upon the specific procedures to be followed in the
18engagement. It is intended that the design of the engagement
19and the procedures to be followed shall allow for flexibility
20in targeting specific areas for examination and to revise the
21procedures where appropriate for achieving the purpose of the
22engagement. The financial statement audit shall be performed in
23accordance with generally accepted auditing standards. The
24compliance attestation engagement shall be (i) performed in
25accordance with attestation standards established by the
26American Institute of Certified Public Accountants and shall



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1examine the compliance with the requirements set forth in this
2Section and (ii) conducted by a licensed public accounting
3firm, selected by the Authority from a list of firms
4prequalified to do business with the Illinois Auditor General.
5Upon request, a show contractor or manager shall provide the
6Authority or person retained to provide attestation services
7with any information and other documentation reasonably
8necessary to perform the obligations set forth in this
9subsection. Upon completion, the report shall be submitted to
10the Authority and made publicly available on the Authority's
12    Within 30 days of the next regularly scheduled meeting of
13the Advisory Committee following the effective date of this
14amendatory Act of the 98th General Assembly, the Authority, in
15conjunction with the Advisory Committee, shall adopt a uniform
16set of procedures to expeditiously investigate and address
17exhibitor complaints and concerns. The procedures shall
18require full disclosure and cooperation among the Authority,
19show managers, show contractors, exhibitor-appointed
20contractors, professional service providers, and labor unions.
21(f) Exhibitor service reforms. The Authority shall make every
22effort to substantially reduce exhibitor's costs for
23participating in shows.
24        (1) Any contract to provide food or beverage services
25    in the buildings and facilities of the Authority, except



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1    Navy Pier, shall be provided at a rate not to exceed the
2    cost established in the contract. The Board shall
3    periodically review all food and beverage contracts.
4        (2) A department or unit of the Authority shall not
5    serve as the exclusive provider of electrical services.
6        (3) Exhibitors shall receive a detailed statement of
7    all costs associated with utility services, including the
8    cost of labor, equipment, and materials.
9(g) Severability. If any provision of this Section or its
10application to any person or circumstance is held invalid, the
11invalidity of that provision or application does not affect
12other provisions or applications of this Section that can be
13given effect without the invalid provision or application.
14(Source: P.A. 97-629, eff. 11-30-11; 98-109, eff. 7-25-13.)
15    Section 99. Effective date. This Act takes effect upon
16becoming law.