Public Act 094-0750
 
SB2872 Enrolled LRB094 14984 BDD 50077 b

    AN ACT concerning revenue.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 1. Short title. This Act may be cited as the Local
Government Facility Lease Act.
 
    Section 5. Definitions. As used in this Act:
    "Facility property" means property owned by a municipality
with a population of over 500,000 inhabitants, or a unit of
local government whose jurisdiction includes territory located
in whole or in part within a municipality with a population of
over 500,000 inhabitants, that is used by the municipality or
other unit of local government for the purpose of an airport,
parking, or waste disposal or processing. "Airport", however,
does not include any airport property, as defined under Section
10 of the O'Hare Modernization Act.
    "Leased facility property" means facility property that is
leased to a private entity for continued use for the same
airport, parking, or waste disposal or processing purpose.
 
    Section 10. Compliance with applicable ordinances. Each
party to whom facility property is leased shall comply with all
applicable ordinances of the municipality in which the property
is located governing contracting with minority-owned and
women-owned businesses and prohibiting discrimination and
requiring appropriate affirmative action, to the extent
permitted by law and federal funding restrictions, as if the
party to whom the property is leased were that municipality.
 
    Section 15. Limitation on the expansion of airport
property. Chicago Midway International Airport is facility
property used for airport purposes under this Act. No runway of
Chicago Midway International Airport shall be expanded beyond
the territory bounded by 55th Street on the north, Cicero
Avenue on the east, 63rd Street on the south, and Central
Avenue on the west, as those avenues and streets are situated
on the effective date of this Act.
 
    Section 20. Use of lease proceeds by lessor.
    (a) With respect to any leased facility property used for
airport purposes, at least 90% of the net proceeds of the lease
shall be expended or obligated by the lessor municipality for:
        (i) the construction and maintenance of infrastructure
    within the municipality;
        (ii) contributions to pension funds created for
    municipal employees; or
        (iii) any combination of (i) or (ii).
    (b) The amount of net proceeds expended or obligated for
item (ii) in subsection (a) may not exceed the amount of net
proceeds expended or obligated for item (i) in subsection (a).
As used in this Section, "net proceeds" means the gross
proceeds less any debt service payments on, and payments to
retire, debt that is specifically associated with the leased
facility property or otherwise required to be paid out of lease
proceeds.
 
    Section 25. Project labor agreements for projects funded by
airport lease proceeds. With respect to the construction of
public works funded by the proceeds described in Section 20,
where the project has an estimated contract value of $500,000
or more, where there has been a written determination that the
public interest in cost, timely and orderly construction, labor
stability, and advancement of minority-owned and women-owned
businesses and minority and female employment would be served
by a project labor agreement, and where not otherwise
prohibited by applicable law, the municipality or municipal
corporation responsible for implementing the project shall in
good faith negotiate a project labor agreement with labor
organizations engaged in the construction industry. Any
project labor agreement shall:
        (1) set forth effective, immediate, and mutually
    binding procedures for resolving jurisdictional disputes
    and grievances arising before completion of work;
        (2) contain guarantees against strikes, lockouts, or
    similar actions;
        (3) ensure a reliable source of skilled and experienced
    labor;
        (4) further public policy objectives as to improved
    employment opportunities for minorities and women in the
    construction industry to the extent permitted by State and
    federal law;
        (5) be made binding on all contractors and
    subcontractors on the public works project through
    inclusion of appropriate bid specifications in all
    relevant bid documents; and
        (6) include such other terms as the parties deem
    appropriate.
 
    Section 30. Labor neutrality and card check procedure
agreement at the leased property. With respect to employees
assigned to work on the premises of leased facility property
used for airport purposes and who are not otherwise members of
an existing bargaining unit cognizable under the National Labor
Relations Act, and where not otherwise prohibited by applicable
law, the lessee shall negotiate in good faith, with any union
that seeks to represent its employees, for a labor neutrality
and card check procedure agreement. The agreement shall apply
only to employees actually assigned to work on the premises of
the leased facility property used for airport purposes and
shall have no applicability to employees not so assigned. The
agreement shall contain provisions accomplishing the following
objectives: resolution by a third party neutral of
disagreements regarding bargaining unit scope, inclusions, and
exclusions; determination of the existence of majority support
for a bargaining agent by means of a card check procedure;
employer neutrality; prohibition of coercion or intimidation
of employees by either the employer or the union; and a
prohibition on strikes, work stoppages, or picketing for the
duration of the agreement.
 
    Section 35. Wage requirements. In order to protect the
wages, working conditions, and job opportunities of employees
employed by the lessee of leased facility property used for
airport purposes to perform work on the site of the leased
premises previously performed by employees of the lessor on the
site of the leased premises and who were in recognized
bargaining units at the time of the lease, the lessee, and any
subcontractor retained by the lessee to perform such work on
the site of the leased premises, shall be required to pay to
those employees an amount not less than the economic equivalent
of the standard of wages and benefits enjoyed by the lessor's
employees who previously performed that work. The lessor shall
certify to the lessee the amount of wages and benefits (or
their equivalent) as of the time of the lease, and any changes
to those amounts as they may occur during the term of the
lease. All projects at the leased facility property used for
airport purposes shall be considered public works for purposes
of the Prevailing Wage Act.
 
    Section 40. Required offers of employment. As part of any
transaction to lease facility property that is used for airport
purposes:
        (1) the lessee must offer employment, under
    substantially similar terms and conditions, to the
    employees of the municipality who are employed, at the time
    of the lease, with respect to the facility property used
    for airport purposes; and
        (2) the municipality must offer employment in another
    department, division, or unit of the municipality, under
    substantially similar terms and conditions, to employees
    of the municipality who are employed, at the time of the
    lease, with respect to the facility property used for
    airport purposes.
 
    Section 45. Judicial enforcement. The provisions of this
Act are judicially enforceable by injunctive relief and an
award of actual damages.
 
    Section 50. Home rule preemption; exemption from State
Mandates Act.
    (a) A home rule unit may not exercise its home rule powers
and functions in a manner that is inconsistent with this Act.
This subsection is a limitation under subsection (i) of Section
6 of Article VII of the Illinois Constitution on the concurrent
exercise by home rule units of powers and functions exercised
by the State.
    (b) Notwithstanding Sections 6 and 8 of the State Mandates
Act, no reimbursement by the State is required for the
implementation of any mandate created by this Act.
 
    Section 900. The Property Tax Code is amended by changing
Section 15-185 as follows:
 
    (35 ILCS 200/15-185)
    Sec. 15-185. Exemption for leaseback property and
qualified leased property Leaseback exemption.
    (a) Notwithstanding anything in this Code to the contrary,
all property owned by a municipality with a population of over
500,000 inhabitants, or a unit of local government whose
jurisdiction includes territory located in whole or in part
within a municipality with a population of over 500,000
inhabitants, shall remain exempt from taxation and any
leasehold interest in that property shall not be subject to
taxation under Section 9-195 if, for the purpose of obtaining
financing, the property is directly or indirectly leased, sold,
or otherwise transferred to another entity whose property is
not exempt and immediately thereafter is the subject of a
leaseback or other agreement that directly or indirectly gives
the municipality or unit of local government (i) a right to
use, control, and possess the property or (ii) a right to
require the other entity, or the other entity's designee or
assignee, to use the property in the performance of services
for the municipality or unit of local government. Property The
property shall no longer be exempt under this subsection
Section as of the date when the right of the municipality or
unit of local government to use, control, and possess the
property or to require the performance of services is
terminated and the municipality or unit of local government no
longer has any option to purchase or otherwise reacquire the
interest in the property which was transferred by the
municipality or unit of local government.
    (b) Notwithstanding anything in this Code to the contrary,
all property owned by a municipality with a population of over
500,000 inhabitants, or a unit of local government whose
jurisdiction includes territory located in whole or in part
within a municipality with a population of over 500,000
inhabitants, shall remain exempt from taxation and any
leasehold interest in that property is not subject to taxation
under Section 9-195 if the property, including dedicated public
property, is used by a municipality or other unit of local
government for the purpose of an airport or parking or for
waste disposal or processing and is leased for continued use
for the same purpose to another entity whose property is not
exempt.
    For the purposes of this subsection (b), "airport" does not
include any airport property, as defined under Section 10 of
the O'Hare Modernization Act.
    Any transaction described under this subsection must be
undertaken in accordance with all appropriate federal laws and
regulations.
    (c) For purposes of this Section, "municipality" means a
municipality as defined in Section 1-1-2 of the Illinois
Municipal Code, and "unit of local government" means a unit of
local government as defined in Article VII, Section 1 of the
Constitution of the State of Illinois. The provisions of this
Section supersede and control over any conflicting provisions
of this Code.
(Source: P.A. 93-19, eff. 6-20-03.)
 
    Section 905. The Illinois Municipal Code is amended by
adding Section 11-102-15 as follows:
 
    (65 ILCS 5/11-102-15 new)
    Sec. 11-102-15. Chicago Midway International Airport;
application of other Acts. In addition to the provisions of
this Division 102, Chicago Midway International Airport is
subject to the provisions of the Local Government Facility
Lease Act.
 
    Section 910. The Prevailing Wage Act is amended by changing
Section 2 as follows:
 
    (820 ILCS 130/2)  (from Ch. 48, par. 39s-2)
    Sec. 2. This Act applies to the wages of laborers,
mechanics and other workers employed in any public works, as
hereinafter defined, by any public body and to anyone under
contracts for public works.
    As used in this Act, unless the context indicates
otherwise:
    "Public works" means all fixed works constructed by any
public body, other than work done directly by any public
utility company, whether or not done under public supervision
or direction, or paid for wholly or in part out of public
funds. "Public works" as defined herein includes all projects
financed in whole or in part with bonds issued under the
Industrial Project Revenue Bond Act (Article 11, Division 74 of
the Illinois Municipal Code), the Industrial Building Revenue
Bond Act, the Illinois Finance Authority Act, the Illinois
Sports Facilities Authority Act, or the Build Illinois Bond
Act, and all projects financed in whole or in part with loans
or other funds made available pursuant to the Build Illinois
Act. "Public works" also includes all projects financed in
whole or in part with funds from the Fund for Illinois' Future
under Section 6z-47 of the State Finance Act, funds for school
construction under Section 5 of the General Obligation Bond
Act, funds authorized under Section 3 of the School
Construction Bond Act, funds for school infrastructure under
Section 6z-45 of the State Finance Act, and funds for
transportation purposes under Section 4 of the General
Obligation Bond Act. "Public works" also includes all projects
financed in whole or in part with funds from the Department of
Commerce and Economic Opportunity Community Affairs under the
Illinois Renewable Fuels Development Program Act for which
there is no project labor agreement. "Public works" also
includes all projects at leased facility property used for
airport purposes under Section 35 of the Local Government
Facility Lease Act.
    "Construction" means all work on public works involving
laborers, workers or mechanics.
    "Locality" means the county where the physical work upon
public works is performed, except (1) that if there is not
available in the county a sufficient number of competent
skilled laborers, workers and mechanics to construct the public
works efficiently and properly, "locality" includes any other
county nearest the one in which the work or construction is to
be performed and from which such persons may be obtained in
sufficient numbers to perform the work and (2) that, with
respect to contracts for highway work with the Department of
Transportation of this State, "locality" may at the discretion
of the Secretary of the Department of Transportation be
construed to include two or more adjacent counties from which
workers may be accessible for work on such construction.
    "Public body" means the State or any officer, board or
commission of the State or any political subdivision or
department thereof, or any institution supported in whole or in
part by public funds, and includes every county, city, town,
village, township, school district, irrigation, utility,
reclamation improvement or other district and every other
political subdivision, district or municipality of the state
whether such political subdivision, municipality or district
operates under a special charter or not.
    The terms "general prevailing rate of hourly wages",
"general prevailing rate of wages" or "prevailing rate of
wages" when used in this Act mean the hourly cash wages plus
fringe benefits for training and apprenticeship programs
approved by the U.S. Department of Labor, Bureau of
Apprenticeship and Training, health and welfare, insurance,
vacations and pensions paid generally, in the locality in which
the work is being performed, to employees engaged in work of a
similar character on public works.
(Source: P.A. 92-16, eff. 6-28-01; 93-15, eff. 6-11-03; 93-16,
eff. 1-1-04; 93-205, eff. 1-1-04; revised 1-12-04.)
 
    Section 915. The State Mandates Act is amended by adding
Section 8.30 as follows:
 
    (30 ILCS 805/8.30 new)
    Sec. 8.30. Exempt mandate. Notwithstanding Sections 6 and 8
of this Act, no reimbursement by the State is required for the
implementation of any mandate created by this amendatory Act of
the 94th General Assembly.
 
    Section 999. Effective date. This Act takes effect upon
becoming law.

Effective Date: 5/9/2006