Full Text of SB2171 97th General Assembly
SB2171sam002 97TH GENERAL ASSEMBLY | Sen. James F. Clayborne, Jr. Filed: 3/14/2011
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| 1 | | AMENDMENT TO SENATE BILL 2171
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 2171 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Property Tax Code is amended by changing | 5 | | Section 15-185 as follows:
| 6 | | (35 ILCS 200/15-185)
| 7 | | Sec. 15-185. Exemption for leaseback property and | 8 | | qualified leased property.
| 9 | | (a) Notwithstanding anything in this Code to
the
contrary, | 10 | | all property owned by a municipality with a population of over
| 11 | | 500,000
inhabitants, a unit of local government whose | 12 | | jurisdiction includes
territory located in
whole or in part | 13 | | within a municipality with a population of over 500,000
| 14 | | inhabitants, or a municipality with home rule powers that is | 15 | | contiguous to a municipality with a population of over 500,000 | 16 | | inhabitants,
or property that as of December 31, 2010 is exempt |
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| 1 | | from real estate taxes and is owned by a tax-exempt entity, | 2 | | shall remain exempt from taxation and any leasehold interest in | 3 | | that property
shall not be
subject to taxation under Section | 4 | | 9-195 if
the
property is directly or indirectly leased, sold, | 5 | | or otherwise transferred to
another entity
whose property is | 6 | | not exempt and immediately thereafter is the subject of a
| 7 | | leaseback or
other agreement that directly or indirectly gives | 8 | | the lessee municipality or unit of
local
government (i) a right | 9 | | to use, control, and possess the property either directly or | 10 | | through its exempt subsidiary or affiliate or (ii) a
right for | 11 | | the municipality or unit of local government to require
the | 12 | | other entity, or the other entity's designee or assignee, to | 13 | | use the
property in the
performance of services for the | 14 | | municipality or unit of local government. Property
shall no | 15 | | longer be exempt under this subsection as of the date when the | 16 | | right of
the
lessee municipality or unit of local government to | 17 | | use, control, and possess the
property or for the municipality | 18 | | or unit of local government to
require the performance of | 19 | | services is terminated and the lessee municipality or unit
of | 20 | | local
government no longer has any option to purchase or | 21 | | otherwise reacquire the
interest in
the property to the extent | 22 | | that such an option or right of reacquisition was part of the | 23 | | lease or a provision of the original sale which was transferred | 24 | | by the municipality or unit of local
government .
| 25 | | (b) Notwithstanding anything in this Code to
the
contrary, | 26 | | all property owned by a municipality with a population of over
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| 1 | | 500,000
inhabitants, a unit of local government whose | 2 | | jurisdiction includes
territory located in
whole or in part | 3 | | within a municipality with a population of over 500,000
| 4 | | inhabitants, or a municipality with home rule powers that is | 5 | | contiguous to a municipality with a population of over 500,000 | 6 | | inhabitants,
shall remain exempt from taxation and any | 7 | | leasehold interest in that property
is not
subject to taxation | 8 | | under Section 9-195 if the property, including dedicated public | 9 | | property, is used by a municipality or other unit of local | 10 | | government for the purpose of an airport or parking or for | 11 | | waste disposal or processing and is leased for continued use | 12 | | for the same purpose to another entity whose property is not | 13 | | exempt. | 14 | | For the purposes of this subsection (b), "airport" does not | 15 | | include any airport property, as defined under Section 10 of | 16 | | the O'Hare Modernization Act. | 17 | | Any transaction described under this subsection must be | 18 | | undertaken in accordance with all appropriate federal laws and | 19 | | regulations. | 20 | | (c) For purposes of this Section, "municipality" means a | 21 | | municipality as defined
in
Section 1-1-2 of the Illinois | 22 | | Municipal Code, and "unit of local government"
means a unit
of | 23 | | local government as defined in Article VII, Section 1 of the | 24 | | Constitution of
the State of
Illinois. The provisions of this | 25 | | Section supersede and control over any
conflicting
provisions | 26 | | of this Code.
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| 1 | | (Source: P.A. 96-779, eff. 8-28-09.)
| 2 | | Section 10. The Local Government Facility Lease Act is | 3 | | amended by changing Sections 5, 20, 25, 30, 35, and 40 as | 4 | | follows: | 5 | | (50 ILCS 615/5)
| 6 | | Sec. 5. Definitions. As used in this Act: | 7 | | "Covered entity" means a municipality or other unit of | 8 | | local government or an entity receiving tax-exempt status | 9 | | pursuant to Section 501(c)(3) of the Internal Revenue Code. | 10 | | "Facility property" means property owned or leased by a | 11 | | covered entity municipality with a population of over
500,000
| 12 | | inhabitants, or a unit of local government whose jurisdiction | 13 | | includes
territory located in
whole or in part within a | 14 | | municipality with a population of over 500,000
inhabitants,
| 15 | | that is used by the covered entity municipality or other unit | 16 | | of local government for a public purpose the purpose of an | 17 | | airport, parking, or waste disposal or processing. "Airport", | 18 | | however, does not include any airport property, as defined | 19 | | under Section 10 of the O'Hare Modernization Act . | 20 | | "Leased facility property" means facility property that is | 21 | | leased or subleased by a covered entity to a private entity for | 22 | | continued use for the same public airport, parking, or waste | 23 | | disposal or processing purpose as that of the covered entity at | 24 | | the time of the lease .
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| 1 | | "Lease" means a lease or sublease between a covered entity | 2 | | and a private entity. | 3 | | "Lessee" means the lessee or sublessee in a lease or | 4 | | sublease between a covered entity and a private entity. | 5 | | "Lessor" means the lessor or sublessor in a lease or | 6 | | sublease between a covered entity and a private entity. | 7 | | "Public purpose" means any project or facility that is | 8 | | acquired, constructed, improved, rehabilitated, reconstructed, | 9 | | replaced, or maintained by a covered entity and that is | 10 | | acquired or undertaken for the benefit of the community. | 11 | | "Public purpose" includes, but is not limited to, a hospital or | 12 | | any other facility created or established for the purpose of | 13 | | providing medical services or treatment, an airport, a parking | 14 | | facility, or a waste disposal or processing facility. "Public | 15 | | purpose" does not include use for the purpose of any airport | 16 | | property, as defined under Section 10 of the O'Hare | 17 | | Modernization Act. | 18 | | (Source: P.A. 94-750, eff. 5-9-06.) | 19 | | (50 ILCS 615/20)
| 20 | | Sec. 20. Use of sale or lease proceeds by lessor . | 21 | | (a) With respect to any leased facility property that is | 22 | | sold by a covered entity and subsequently leased back by that | 23 | | covered entity used for airport purposes , at least 90% of the | 24 | | net proceeds of the sale lease shall be expended or obligated | 25 | | by the covered entity lessor municipality for: |
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| 1 | | (i) the construction and maintenance of infrastructure | 2 | | within the municipality where the property is located ; | 3 | | (ii) contributions to pension funds created for | 4 | | municipal employees employed by the lessee of leased | 5 | | facility property or municipal employees within the | 6 | | municipality where the property is located ; or | 7 | | (iii) any combination of (i) or (ii). | 8 | | (b) With respect to any leased facility property, at least | 9 | | 90% of the net proceeds of the lease shall be expended or | 10 | | obligated by the covered entity for: | 11 | | (i) the construction and maintenance of infrastructure | 12 | | within the municipality where the property is located; | 13 | | (ii) contributions to pension funds created for | 14 | | employees employed by the lessee of leased facility | 15 | | property or municipal employees within the municipality | 16 | | where the property is located; or | 17 | | (iii) any combination of (i) or (ii). | 18 | | (c) (b) The amount of net proceeds expended or obligated | 19 | | for item (ii) in subsection (a) may not exceed the amount of | 20 | | net proceeds expended or obligated for item (i) in subsection | 21 | | (a) , and the amount of net proceeds expended or obligated for | 22 | | item (ii) in subsection (b) may not exceed the amount of net | 23 | | proceeds expended or obligated for item (i) in subsection (b) . | 24 | | As used in this Section, "net proceeds" means the gross | 25 | | proceeds less any debt service payments on, and payments to | 26 | | retire, debt that is specifically associated with the facility |
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| 1 | | property or leased facility property or otherwise required to | 2 | | be paid out of the lease proceeds of the sale or lease .
| 3 | | (Source: P.A. 94-750, eff. 5-9-06.) | 4 | | (50 ILCS 615/25)
| 5 | | Sec. 25. Project labor agreements for projects funded by | 6 | | sale or airport lease proceeds. With respect to the | 7 | | construction of public works funded by the proceeds described | 8 | | in Section 20 of this Act , where the project has an estimated | 9 | | contract value of $500,000 or more, where there has been a | 10 | | written determination that the public interest in cost, timely | 11 | | and orderly construction, labor stability, and advancement of | 12 | | minority-owned and women-owned businesses and minority and | 13 | | female employment would be served by a project labor agreement, | 14 | | and where not otherwise prohibited by applicable law, the | 15 | | covered entity municipality or municipal corporation | 16 | | responsible for implementing the project shall in good faith | 17 | | negotiate a project labor agreement with labor organizations | 18 | | engaged in the construction industry. Any project labor | 19 | | agreement shall: | 20 | | (1) set forth effective, immediate, and mutually | 21 | | binding procedures for resolving jurisdictional disputes | 22 | | and grievances arising before completion of work; | 23 | | (2) contain guarantees against strikes, lockouts, or | 24 | | similar actions; | 25 | | (3) ensure a reliable source of skilled and experienced |
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| 1 | | labor; | 2 | | (4) further public policy objectives as to improved | 3 | | employment opportunities for minorities and women in the | 4 | | construction industry to the extent permitted by State and | 5 | | federal law; | 6 | | (5) be made binding on all contractors and | 7 | | subcontractors on the public works project through | 8 | | inclusion of appropriate bid specifications in all | 9 | | relevant bid documents; and | 10 | | (6) include such other terms as the parties deem | 11 | | appropriate.
| 12 | | (Source: P.A. 94-750, eff. 5-9-06.) | 13 | | (50 ILCS 615/30)
| 14 | | Sec. 30. Labor neutrality and card check procedure | 15 | | agreement at the leased facility property. With respect to | 16 | | employees assigned to work on the premises of leased facility | 17 | | property used for airport purposes and who are not otherwise | 18 | | members of an existing bargaining unit cognizable under the | 19 | | National Labor Relations Act, and where not otherwise | 20 | | prohibited by applicable law, the lessee shall negotiate in | 21 | | good faith, with any union that seeks to represent its | 22 | | employees, for a labor neutrality and card check procedure | 23 | | agreement. The agreement shall apply only to employees actually | 24 | | assigned to work on the premises of the leased facility | 25 | | property used for airport purposes and shall have no |
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| 1 | | applicability to employees not so assigned. The agreement shall | 2 | | contain provisions accomplishing the following objectives: | 3 | | resolution by a third party neutral of disagreements regarding | 4 | | bargaining unit scope, inclusions, and exclusions; | 5 | | determination of the existence of majority support for a | 6 | | bargaining agent by means of a card check procedure; employer | 7 | | neutrality; prohibition of coercion or intimidation of | 8 | | employees by either the employer or the union; and a | 9 | | prohibition on strikes, work stoppages, or picketing for the | 10 | | duration of the agreement.
| 11 | | (Source: P.A. 94-750, eff. 5-9-06.) | 12 | | (50 ILCS 615/35)
| 13 | | Sec. 35. Wage requirements. In order to protect the wages, | 14 | | working conditions, and job opportunities of employees | 15 | | employed by the lessee of leased facility property used for | 16 | | airport purposes to perform work on the site of the leased | 17 | | premises previously performed by employees of the covered | 18 | | entity lessor on the site of the leased premises and who were | 19 | | in recognized bargaining units at the time of the lease, the | 20 | | lessee, and any subcontractor retained by the lessee to perform | 21 | | such work on the site of the leased premises, shall be required | 22 | | to pay to those employees an amount not less than the economic | 23 | | equivalent of the standard of wages and benefits enjoyed by the | 24 | | covered entity's lessor's employees who previously performed | 25 | | that work. The covered entity lessor shall certify to the |
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| 1 | | lessee the amount of wages and benefits (or their equivalent) | 2 | | as of the time of the lease, and any changes to those amounts | 3 | | as they may occur during the term of the lease. All projects at | 4 | | the leased facility property used for airport purposes shall be | 5 | | considered public works for purposes of the Prevailing Wage | 6 | | Act , the Economic Development Area Tax Increment Allocation | 7 | | Act, and the Illinois Health Facilities Planning Act .
| 8 | | (Source: P.A. 94-750, eff. 5-9-06.) | 9 | | (50 ILCS 615/40)
| 10 | | Sec. 40. Required offers of employment. As part of any | 11 | | transaction to lease facility property that is used for airport | 12 | | purposes : | 13 | | (1) the lessee must offer employment, under | 14 | | substantially similar terms and conditions, to the | 15 | | employees of the covered entity municipality who are | 16 | | employed, at the time of the lease, with respect to the | 17 | | facility property used for airport purposes ; and | 18 | | (2) the covered entity municipality must offer | 19 | | employment in another department, division, or unit of the | 20 | | covered entity municipality , under substantially similar | 21 | | terms and conditions, to employees of the covered entity | 22 | | municipality who are employed, at the time of the lease, | 23 | | with respect to the facility property used for airport | 24 | | purposes .
| 25 | | (Source: P.A. 94-750, eff. 5-9-06.)".
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