Full Text of SB1992 97th General Assembly
SB1992enr 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning State government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 1. Findings; purpose; text and revisory changes; | 5 | | validation; additional material. | 6 | | (a) It is the purpose of this Act to reenact the provisions | 7 | | of subsection (c) of Section 5.4 of the Metropolitan Pier and | 8 | | Exposition Authority Act, which a federal district court found | 9 | | to be preempted under federal law on the grounds that it | 10 | | regulates issues protected by Section 8 of the National Labor | 11 | | Relations Act. Following the court's ruling, the parties to the | 12 | | suit resolved their dispute related to the challenged | 13 | | provisions. The reenactment of subsection (c) of Section 5.4 | 14 | | implements, in part, settlement agreements made and entered | 15 | | into between the Authority and the plaintiffs that filed suit, | 16 | | the Chicago Regional Council of Carpenters and the | 17 | | International Brotherhood of Teamsters Local 727. The | 18 | | agreements were filed with the Secretary of State Index | 19 | | Department and designated as 97-GA-A01 and 97-GA-A02, | 20 | | respectively. | 21 | | (b) In this Act, the base text of the reenacted Section is | 22 | | set forth as it existed at the time of the federal district | 23 | | court's decision. Striking and underscoring is used only to | 24 | | show the changes being made to that base text. The changes |
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| 1 | | being made to this Act are consistent with the settlement | 2 | | agreement or declarative of existing law. | 3 | | Section 5. The Metropolitan Pier and Exposition Authority | 4 | | Act is amended by reenacting and changing Section 5.4 as | 5 | | 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 | 23 | | McCormick Place and Navy Pier. |
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| 1 | | (4) The Authority supports the operation of McCormick | 2 | | Place and Navy Pier through not only fees on the rental of | 3 | | exhibit and meeting room space, electrical and utility | 4 | | service, food and beverage services, and parking, but also | 5 | | hotel room rates paid by persons staying at the | 6 | | Authority-owned hotel. | 7 | | (5) The Authority has a compelling and proprietary | 8 | | interest in the success, competitiveness, and continued | 9 | | viability of McCormick Place and Navy Pier as the owner and | 10 | | operator of the convention facilities and its obligation to | 11 | | ensure that these facilities produce sufficient operating | 12 | | revenues. | 13 | | (6) The Authority's convention facilities were | 14 | | constructed and renovated through the issuance of public | 15 | | bonds that are directly repaid by State hotel, auto rental, | 16 | | food and beverage, and airport and departure taxes paid | 17 | | principally by persons who attend, work at, exhibit, and | 18 | | provide goods and services to conventions, shows, | 19 | | exhibitions, and meetings at McCormick Place and Navy Pier. | 20 | | (7) State law also dedicates State occupation and use | 21 | | tax revenues to fulfill debt service obligations on these | 22 | | bonds should State hotel, auto rental, food and beverage, | 23 | | and airport and departure taxes fail to generate sufficient | 24 | | revenue. | 25 | | (8) Through fiscal year 2010, $55 million in State | 26 | | occupation and use taxes will have been allocated to make |
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| 1 | | debt service payments on the Authority's bonds due to | 2 | | shortfalls in State hotel, auto rental, food and beverage, | 3 | | and airport and departure taxes. These shortfalls are | 4 | | expected to continue in future fiscal years and would | 5 | | require the annual dedication of approximately $40 million | 6 | | in State occupation and use taxes to fulfill debt service | 7 | | payments. | 8 | | (9) In 2009, managers of the International Plastics | 9 | | Showcase announced that 2009 was the last year they would | 10 | | host their exhibition at McCormick Place, as they had since | 11 | | 1971, because union labor work rules and electric and food | 12 | | service costs make it uneconomical for the show managers | 13 | | and exhibitors to use McCormick Place as a convention venue | 14 | | as compared to convention facilities in Orlando, Florida | 15 | | and Las Vegas, Nevada. The exhibition used over 740,000 | 16 | | square feet of exhibit space, attracted over 43,000 | 17 | | attendees, generated $4.8 million of revenues to McCormick | 18 | | Place, and raised over $200,000 in taxes to pay debt | 19 | | service on convention facility bonds. | 20 | | (10) After the International Plastics Showcase | 21 | | exhibition announced its departure, other conventions and | 22 | | exhibitions managers and exhibitors also stated that they | 23 | | would not return to McCormick Place and Navy Pier for the | 24 | | same reasons cited by the International Plastics Showcase | 25 | | exhibition. In addition, still other managers and | 26 | | exhibitors stated that they would not select McCormick |
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| 1 | | Place as a convention venue unless the union labor work | 2 | | rules and electrical and food service costs were made | 3 | | competitive with those in Orlando and Las Vegas. | 4 | | (11) The General Assembly created the Joint Committee | 5 | | on the Metropolitan Pier and Exposition Authority to | 6 | | conduct hearings and obtain facts to determine how union | 7 | | labor work rules and electrical and food service costs make | 8 | | McCormick Place and Navy Pier uneconomical as a convention | 9 | | venue. | 10 | | (12) Witness testimony and fact-gathering revealed | 11 | | that while the skilled labor provided by trade unions at | 12 | | McCormick Place and Navy Pier is second to none and is | 13 | | actually "exported" to work on conventions and exhibitions | 14 | | held in Orlando and Las Vegas, restrictive work rules on | 15 | | the activities show exhibitors may perform present | 16 | | exhibitors and show managers with an uninviting atmosphere | 17 | | and result in significantly higher costs than competing | 18 | | convention facilities. | 19 | | (13) Witness testimony and fact-gathering also | 20 | | revealed that the mark-up on electrical and food service | 21 | | imposed by the Authority to generate operating revenue for | 22 | | McCormick Place and Navy Pier also substantially increased | 23 | | exhibitor and show organizer costs to the point of excess | 24 | | when compared to competing convention facilities. | 25 | | (14) Witness testimony and fact-gathering further | 26 | | revealed that the additional departure of conventions, |
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| 1 | | exhibitions, and trade shows from Authority facilities | 2 | | threatens the continued economic viability of these | 3 | | facilities and the stability of sufficient tax revenues | 4 | | necessary to support debt service. | 5 | | (15) In order to safeguard the Authority's and State of | 6 | | Illinois' shared compelling and proprietary interests in | 7 | | McCormick Place and Navy Pier and in response to local | 8 | | economic needs, the provisions contained in this Section | 9 | | set forth mandated changes and reforms to restore and | 10 | | ensure that (i) the Authority's facilities remain | 11 | | economically competitive with other convention venues and | 12 | | (ii) conventions, exhibitions, trade shows, and other | 13 | | meetings are attracted to and retained at Authority | 14 | | facilities by producing an exhibitor-friendly environment | 15 | | and by reducing costs for exhibitors and show managers. | 16 | | (16) The provisions set forth in this Section are | 17 | | reasonable, necessary, and narrowly tailored to safeguard | 18 | | the Authority's and State of Illinois' shared and | 19 | | compelling proprietary interests and respond to local | 20 | | economic needs as compared to the available alternative set | 21 | | forth in House Bill 4900 of the 96th General Assembly and | 22 | | proposals submitted to the Joint Committee on the | 23 | | Metropolitan Pier and Exposition Authority. Action by the | 24 | | State offers the only comprehensive means to remedy the | 25 | | circumstances set forth in these findings, despite the | 26 | | concerted and laudable voluntary efforts of the Authority, |
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| 1 | | labor unions, show contractors, show managers, and | 2 | | exhibitors. | 3 | | (b) Definitions. As used in this Section: | 4 | | "Booth" means the demarcated exhibit space of an | 5 | | exhibitor on Authority premises. | 6 | | "Contractor" or "show contractor" means any person who | 7 | | contracts with the Authority, an exhibitor, or with the | 8 | | manager of a show to provide any services related to | 9 | | drayage, rigging, carpentry, decorating, electrical, | 10 | | maintenance, mechanical, and food and beverage services or | 11 | | related trades and duties for shows on Authority premises. | 12 | | "Exhibitor" or "show exhibitor" means any person who | 13 | | contracts with the Authority or with a manager or | 14 | | contractor of a show held or to be held on Authority | 15 | | premises. | 16 | | "Exhibitor employee" means any person who has been | 17 | | employed by the exhibitor as a full-time employee for a | 18 | | minimum of 6 months before the show's opening date. | 19 | | "Hand tools" means cordless tools, power tools, and | 20 | | other tools as determined by the Authority. | 21 | | "Licensee" means any entity that uses the Authority's | 22 | | premises. | 23 | | "Manager" or "show manager" means any person that owns | 24 | | or manages a show held or to be held on Authority premises. | 25 | | "Personally owned vehicles" means the vehicles owned |
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| 1 | | by show exhibitors or the show management, excluding | 2 | | commercially registered trucks, vans, and other vehicles | 3 | | as determined by the Authority. | 4 | | "Premises" means grounds, buildings, and facilities of | 5 | | the Authority. | 6 | | "Show" means a convention, exposition, trade show, | 7 | | event, or meeting held on Authority premises by a show | 8 | | manager or show contractor on behalf of a show manager. | 9 | | "2011 Settlement Agreement" means the agreement that | 10 | | the Authority made and entered into with the Chicago | 11 | | Regional Council of Carpenters, not including any | 12 | | revisions or amendments, and filed with the Illinois | 13 | | Secretary of State Index Department and designated as | 14 | | 97-GA-A01. | 15 | | "Union employees" means workers represented by a labor | 16 | | organization, as defined in the National Labor Relations | 17 | | Act, providing skilled labor services to exhibitors, a show | 18 | | manager, or a show contractor on Authority premises. | 19 | | (c) Exhibitor rights. | 20 | | In order to control costs, increase the | 21 | | competitiveness, and promote and provide for the economic | 22 | | stability of Authority premises, all Authority contracts | 23 | | with exhibitors, contractors, and managers shall include | 24 | | the following minimum terms and conditions: | 25 | | (1) Consistent with safety and the skills and training |
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| 1 | | necessary to perform the task, as determined by the | 2 | | Authority, an exhibitor and exhibitor employees are | 3 | | permitted in a booth of any size with the use of the | 4 | | exhibitor's ladders and hand tools to: | 5 | | (i) set-up and dismantle exhibits displayed on | 6 | | Authority premises; | 7 | | (ii) assemble and disassemble materials, | 8 | | machinery, or equipment on Authority premises; and | 9 | | (iii) install all signs, graphics, props, | 10 | | balloons, other decorative items, and the exhibitor's | 11 | | own drapery, including the skirting of exhibitor | 12 | | tables, on the Authority's premises. | 13 | | (2) An exhibitor and exhibitor employees are permitted | 14 | | in a booth of any size to deliver, set-up, plug in, | 15 | | interconnect, and operate an exhibitor's electrical | 16 | | equipment, computers, audio-visual devices, and other | 17 | | equipment. | 18 | | (3) An exhibitor and exhibitor employees are permitted | 19 | | in a booth of any size to skid, position, and re-skid all | 20 | | exhibitor material, machinery, and equipment on Authority | 21 | | premises. | 22 | | (4) An exhibitor and exhibitor employees are | 23 | | prohibited at any time from using scooters, forklifts, | 24 | | pallet jacks, condors, scissors lifts, motorized dollies, | 25 | | or similar motorized or hydraulic equipment on Authority | 26 | | premises. |
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| 1 | | (5) The Authority shall designate areas, in its | 2 | | discretion, where exhibitors may unload and load exhibitor | 3 | | materials from privately owned vehicles at Authority | 4 | | premises with the use of non-motorized hand trucks and | 5 | | dollies. | 6 | | (6) On Monday through Friday for any consecutive 8-hour | 7 | | period during the hours of 6:00 a.m. and 10:00 p.m., union | 8 | | employees on Authority premises shall be paid | 9 | | straight-time hourly wages plus fringe benefits. Union | 10 | | employees shall be paid straight-time and a half hourly | 11 | | wages plus fringe benefits for labor services provided | 12 | | after any consecutive 8-hour period; provided, however, | 13 | | that between the hours of midnight and 6:00 a.m. union | 14 | | employees shall be paid double straight-time wages plus | 15 | | fringe benefits for labor services. | 16 | | (7) On Monday through Friday for any consecutive 8-hour | 17 | | period during the hours of 6:00 a.m. and 10:00 p.m., a show | 18 | | manager or contractor shall charge an exhibitor only for | 19 | | labor services provided by union employees on Authority | 20 | | premises based on straight-time hourly wages plus fringe | 21 | | benefits along with a reasonable mark-up. After any | 22 | | consecutive 8-hour period, a show manager or contractor | 23 | | shall charge an exhibitor only for labor services provided | 24 | | by union employees based on straight-time and a half hourly | 25 | | wages plus fringe benefits along with a reasonable mark-up; | 26 | | provided, however, that between the hours of midnight and |
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| 1 | | 6:00 a.m. a show manager or contractor shall charge an | 2 | | exhibitor only for labor services provided by union | 3 | | employees based on double straight-time wages plus fringe | 4 | | benefits along with a reasonable mark-up. | 5 | | (8) (Blank). On Saturdays for any consecutive 8-hour | 6 | | period, union employees on Authority premises shall be paid | 7 | | straight-time and a half hourly wages plus fringe benefits. | 8 | | After any consecutive 8-hour period, union employees on | 9 | | Authority premises shall be paid double straight-time | 10 | | hourly wages plus fringe benefits; provided, however, that | 11 | | between the hours of midnight and 6:00 a.m. union employees | 12 | | shall be paid double straight-time wages plus fringe | 13 | | benefits for labor services. | 14 | | (9) (Blank). On Saturdays for any consecutive 8-hour | 15 | | period, a show manager or contractor shall charge an | 16 | | exhibitor only for labor services provided by union | 17 | | employees on Authority premises based on straight-time and | 18 | | a half hourly wages plus fringe benefits along with a | 19 | | reasonable mark-up. After any consecutive 8-hour period, a | 20 | | show manager or contractor shall charge an exhibitor only | 21 | | for labor services provided by union employees based on | 22 | | double straight-time hourly wages plus fringe benefits | 23 | | along with a reasonable mark-up; provided, however, that | 24 | | between the hours of midnight and 6:00 a.m. a show manager | 25 | | or contractor shall charge an exhibitor only for labor | 26 | | services provided by union employees based on double |
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| 1 | | straight-time wages plus fringe benefits along with a | 2 | | reasonable mark-up. | 3 | | (10) (Blank). On Sundays and on State and federal | 4 | | holidays, union employees on Authority premises shall be | 5 | | paid double straight-time hourly wages plus fringe | 6 | | benefits. | 7 | | (11) (Blank). On Sundays and on State and federal | 8 | | holidays, a show manager or contractor shall charge an | 9 | | exhibitor only for labor services provided by union | 10 | | employees on Authority premises based on double | 11 | | straight-time hourly wages plus fringe benefits along with | 12 | | a reasonable mark-up. | 13 | | (12) The Authority has the power to determine, after | 14 | | consultation with the Advisory Council, the work | 15 | | jurisdiction and scope of work of union employees on | 16 | | Authority premises during the move-in, move-out, and run of | 17 | | a show, provided that any affected labor organization may | 18 | | contest the Authority's determination through a binding | 19 | | decision of an independent, third-party arbitrator. When | 20 | | making the determination, the Authority or arbitrator, as | 21 | | the case may be, shall consider the training and skills | 22 | | required to perform the task, past practices on Authority | 23 | | premises, safety, and the need for efficiency and exhibitor | 24 | | satisfaction. These factors shall be considered in their | 25 | | totality and not in isolation. The Authority's | 26 | | determination must be made in writing, set forth an |
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| 1 | | explanation and statement of the reason or reasons | 2 | | supporting the determination, and be provided to each | 3 | | affected labor organization. The changes in this item (12) | 4 | | by this amendatory Act of the 97th General Assembly are | 5 | | declarative of existing law and shall not be construed as a | 6 | | new enactment. Nothing in this item permits the Authority | 7 | | to eliminate any labor organization representing union | 8 | | employees that provide labor services on the move-in, | 9 | | move-out, and run of the show as of the effective date of | 10 | | this amendatory Act of the 96th General Assembly. | 11 | | (13) (Blank). During the run of a show, all stewards of | 12 | | union employees shall be working stewards. Subject to the | 13 | | discretion of the Authority, no more than one working | 14 | | steward per labor organization representing union | 15 | | employees providing labor services on Authority premises | 16 | | shall be used per building and per show. | 17 | | (14) An exhibitor or show manager may request by name | 18 | | specific union employees to provide labor services on | 19 | | Authority premises consistent with all State and federal | 20 | | laws. Union employees requested by an exhibitor shall take | 21 | | priority over union employees requested by a show manager. | 22 | | (15) A show manager or show contractor on behalf of a | 23 | | show manager may retain an electrical contractor approved | 24 | | by the Authority or Authority-provisioned electrical | 25 | | services to provide electrical services on the premises. If | 26 | | a show manager or show contractor on behalf of a show |
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| 1 | | manager retains Authority-provisioned electrical services, | 2 | | then the Authority shall offer these services at a rate not | 3 | | to exceed the cost of providing those services. | 4 | | (16) Crew sizes for any task or operation shall not | 5 | | exceed 2 persons unless, after consultation with the | 6 | | Advisory Council, the Authority determines otherwise based | 7 | | on the task, skills, and training required to perform the | 8 | | task and on safety. | 9 | | (17) An exhibitor may bring food and beverages on the | 10 | | premises of the Authority for personal consumption. | 11 | | (18) Show managers and contractors shall comply with | 12 | | any audit performed under subsection (e) of this Section. | 13 | | (19) A show manager or contractor shall charge an | 14 | | exhibitor only for labor services provided by union | 15 | | employees on Authority premises on a minimum half-hour | 16 | | basis. | 17 | | The Authority has the power to implement, enforce, and | 18 | | administer the exhibitor rights set forth in this subsection, | 19 | | including the promulgation of rules. The Authority also has the | 20 | | power to determine violations of this subsection and implement | 21 | | appropriate remedies, including, but not limited to, barring | 22 | | violators from Authority premises. The provisions set forth in | 23 | | this Section are binding and equally applicable to any show | 24 | | conducted at Navy Pier, and this statement of the law is | 25 | | declarative of existing law and shall not be construed as a new | 26 | | enactment. The Authority may waive the applicability of only |
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| 1 | | item (6) of this subsection (c) to the extent necessary and | 2 | | required to comply with paragraph 1 of Section F of the 2011 | 3 | | Settlement Agreement, as set forth on Page 12 of that | 4 | | Agreement. | 5 | | (d) Advisory Council. | 6 | | (1) An Advisory Council is hereby established to ensure | 7 | | an active and productive dialogue between all affected | 8 | | stakeholders to ensure exhibitor satisfaction for | 9 | | conventions, exhibitions, trade shows, and meetings held | 10 | | on Authority premises. | 11 | | (2) The composition of the Council shall be determined | 12 | | by the Authority consistent with its existing practice for | 13 | | labor-management relations. | 14 | | (3) The Council shall hold meetings no less than once | 15 | | every 90 days. | 16 | | (e) Audit of exhibitor rights. | 17 | | The Authority shall retain the services of a person to | 18 | | complete, at least twice per calendar year, a financial | 19 | | statement audit and compliance attestation examination to | 20 | | determine and verify that the exhibitor rights set forth in | 21 | | this Section have produced cost reductions for exhibitors and | 22 | | those cost reductions have been fairly passed along to | 23 | | exhibitors. The financial statement audit shall be performed in | 24 | | accordance with generally accepted auditing standards. The |
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| 1 | | compliance attestation examination shall be (i) performed in | 2 | | accordance with attestation standards established by the | 3 | | American Institute of Certified Public Accountants and shall | 4 | | examine the compliance with the requirements set forth in this | 5 | | Section and (ii) conducted by a licensed public accounting | 6 | | firm, selected by the Authority from a list of firms | 7 | | prequalified to do business with the Illinois Auditor General. | 8 | | Upon request, a show contractor or manager shall provide the | 9 | | Authority or person retained to provide auditing services with | 10 | | any information and other documentation reasonably necessary | 11 | | to perform the obligations set forth in this subsection. Upon | 12 | | completion, the report shall be submitted to the Authority and | 13 | | made publicly available on the Authority's website. | 14 | | (f) Exhibitor service reforms. The Authority shall make every | 15 | | effort to substantially reduce exhibitor's costs for | 16 | | participating in shows. | 17 | | (1) Any contract to provide food or beverage services | 18 | | in the buildings and facilities of the Authority, except | 19 | | Navy Pier, shall be provided at a rate not to exceed the | 20 | | cost established in the contract. The Board shall | 21 | | periodically review all food and beverage contracts. | 22 | | (2) A department or unit of the Authority shall not | 23 | | serve as the exclusive provider of electrical services. | 24 | | (3) Exhibitors shall receive a detailed statement of | 25 | | all costs associated with utility services, including the |
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| 1 | | cost of labor, equipment, and materials. | 2 | | (g) Severability. If any provision of this Section or its | 3 | | application to any person or circumstance is held invalid, the | 4 | | invalidity of that provision or application does not affect | 5 | | other provisions or applications of this Section that can be | 6 | | given effect without the invalid provision or application.
| 7 | | (Source: P.A. 96-898, eff. 5-27-10; 96-899, eff. 5-28-10.)
| 8 | | Section 99. Effective date. This Act takes effect upon | 9 | | becoming law. |
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