Public Act 097-0629
 
SB1992 EnrolledLRB097 09282 PJG 49417 b

    AN ACT concerning State government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 1. Findings; purpose; text and revisory changes;
validation; additional material.
    (a) It is the purpose of this Act to reenact the provisions
of subsection (c) of Section 5.4 of the Metropolitan Pier and
Exposition Authority Act, which a federal district court found
to be preempted under federal law on the grounds that it
regulates issues protected by Section 8 of the National Labor
Relations Act. Following the court's ruling, the parties to the
suit resolved their dispute related to the challenged
provisions. The reenactment of subsection (c) of Section 5.4
implements, in part, settlement agreements made and entered
into between the Authority and the plaintiffs that filed suit,
the Chicago Regional Council of Carpenters and the
International Brotherhood of Teamsters Local 727. The
agreements were filed with the Secretary of State Index
Department and designated as 97-GA-A01 and 97-GA-A02,
respectively.
    (b) In this Act, the base text of the reenacted Section is
set forth as it existed at the time of the federal district
court's decision. Striking and underscoring is used only to
show the changes being made to that base text. The changes
being made to this Act are consistent with the settlement
agreement or declarative of existing law.
 
    Section 5. The Metropolitan Pier and Exposition Authority
Act is amended by reenacting and changing Section 5.4 as
follows:
 
    (70 ILCS 210/5.4)
    Sec. 5.4. Exhibitor rights and work rule reforms.
 
(a) Legislative findings.
        (1) The Authority is a political subdivision of the
    State of Illinois subject to the plenary authority of the
    General Assembly and was created for the benefit of the
    general public to promote business, industry, commerce,
    and tourism within the City of Chicago and the State of
    Illinois.
        (2) The Authority owns and operates McCormick Place and
    Navy Pier, which have collectively 2.8 million square feet
    of exhibit hall space, 700,000 square feet of meeting room
    space.
        (3) The Authority is a vital economic engine that
    annually generates 65,000 jobs and $8 billion of economic
    activity for the State of Illinois through the trade shows,
    conventions, and other meetings held and attended at
    McCormick Place and Navy Pier.
        (4) The Authority supports the operation of McCormick
    Place and Navy Pier through not only fees on the rental of
    exhibit and meeting room space, electrical and utility
    service, food and beverage services, and parking, but also
    hotel room rates paid by persons staying at the
    Authority-owned hotel.
        (5) The Authority has a compelling and proprietary
    interest in the success, competitiveness, and continued
    viability of McCormick Place and Navy Pier as the owner and
    operator of the convention facilities and its obligation to
    ensure that these facilities produce sufficient operating
    revenues.
        (6) The Authority's convention facilities were
    constructed and renovated through the issuance of public
    bonds that are directly repaid by State hotel, auto rental,
    food and beverage, and airport and departure taxes paid
    principally by persons who attend, work at, exhibit, and
    provide goods and services to conventions, shows,
    exhibitions, and meetings at McCormick Place and Navy Pier.
        (7) State law also dedicates State occupation and use
    tax revenues to fulfill debt service obligations on these
    bonds should State hotel, auto rental, food and beverage,
    and airport and departure taxes fail to generate sufficient
    revenue.
        (8) Through fiscal year 2010, $55 million in State
    occupation and use taxes will have been allocated to make
    debt service payments on the Authority's bonds due to
    shortfalls in State hotel, auto rental, food and beverage,
    and airport and departure taxes. These shortfalls are
    expected to continue in future fiscal years and would
    require the annual dedication of approximately $40 million
    in State occupation and use taxes to fulfill debt service
    payments.
        (9) In 2009, managers of the International Plastics
    Showcase announced that 2009 was the last year they would
    host their exhibition at McCormick Place, as they had since
    1971, because union labor work rules and electric and food
    service costs make it uneconomical for the show managers
    and exhibitors to use McCormick Place as a convention venue
    as compared to convention facilities in Orlando, Florida
    and Las Vegas, Nevada. The exhibition used over 740,000
    square feet of exhibit space, attracted over 43,000
    attendees, generated $4.8 million of revenues to McCormick
    Place, and raised over $200,000 in taxes to pay debt
    service on convention facility bonds.
        (10) After the International Plastics Showcase
    exhibition announced its departure, other conventions and
    exhibitions managers and exhibitors also stated that they
    would not return to McCormick Place and Navy Pier for the
    same reasons cited by the International Plastics Showcase
    exhibition. In addition, still other managers and
    exhibitors stated that they would not select McCormick
    Place as a convention venue unless the union labor work
    rules and electrical and food service costs were made
    competitive with those in Orlando and Las Vegas.
        (11) The General Assembly created the Joint Committee
    on the Metropolitan Pier and Exposition Authority to
    conduct hearings and obtain facts to determine how union
    labor work rules and electrical and food service costs make
    McCormick Place and Navy Pier uneconomical as a convention
    venue.
        (12) Witness testimony and fact-gathering revealed
    that while the skilled labor provided by trade unions at
    McCormick Place and Navy Pier is second to none and is
    actually "exported" to work on conventions and exhibitions
    held in Orlando and Las Vegas, restrictive work rules on
    the activities show exhibitors may perform present
    exhibitors and show managers with an uninviting atmosphere
    and result in significantly higher costs than competing
    convention facilities.
        (13) Witness testimony and fact-gathering also
    revealed that the mark-up on electrical and food service
    imposed by the Authority to generate operating revenue for
    McCormick Place and Navy Pier also substantially increased
    exhibitor and show organizer costs to the point of excess
    when compared to competing convention facilities.
        (14) Witness testimony and fact-gathering further
    revealed that the additional departure of conventions,
    exhibitions, and trade shows from Authority facilities
    threatens the continued economic viability of these
    facilities and the stability of sufficient tax revenues
    necessary to support debt service.
        (15) In order to safeguard the Authority's and State of
    Illinois' shared compelling and proprietary interests in
    McCormick Place and Navy Pier and in response to local
    economic needs, the provisions contained in this Section
    set forth mandated changes and reforms to restore and
    ensure that (i) the Authority's facilities remain
    economically competitive with other convention venues and
    (ii) conventions, exhibitions, trade shows, and other
    meetings are attracted to and retained at Authority
    facilities by producing an exhibitor-friendly environment
    and by reducing costs for exhibitors and show managers.
        (16) The provisions set forth in this Section are
    reasonable, necessary, and narrowly tailored to safeguard
    the Authority's and State of Illinois' shared and
    compelling proprietary interests and respond to local
    economic needs as compared to the available alternative set
    forth in House Bill 4900 of the 96th General Assembly and
    proposals submitted to the Joint Committee on the
    Metropolitan Pier and Exposition Authority. Action by the
    State offers the only comprehensive means to remedy the
    circumstances set forth in these findings, despite the
    concerted and laudable voluntary efforts of the Authority,
    labor unions, show contractors, show managers, and
    exhibitors.
 
(b) Definitions. As used in this Section:
        "Booth" means the demarcated exhibit space of an
    exhibitor on Authority premises.
        "Contractor" or "show contractor" means any person who
    contracts with the Authority, an exhibitor, or with the
    manager of a show to provide any services related to
    drayage, rigging, carpentry, decorating, electrical,
    maintenance, mechanical, and food and beverage services or
    related trades and duties for shows on Authority premises.
        "Exhibitor" or "show exhibitor" means any person who
    contracts with the Authority or with a manager or
    contractor of a show held or to be held on Authority
    premises.
        "Exhibitor employee" means any person who has been
    employed by the exhibitor as a full-time employee for a
    minimum of 6 months before the show's opening date.
        "Hand tools" means cordless tools, power tools, and
    other tools as determined by the Authority.
        "Licensee" means any entity that uses the Authority's
    premises.
        "Manager" or "show manager" means any person that owns
    or manages a show held or to be held on Authority premises.
        "Personally owned vehicles" means the vehicles owned
    by show exhibitors or the show management, excluding
    commercially registered trucks, vans, and other vehicles
    as determined by the Authority.
        "Premises" means grounds, buildings, and facilities of
    the Authority.
        "Show" means a convention, exposition, trade show,
    event, or meeting held on Authority premises by a show
    manager or show contractor on behalf of a show manager.
        "2011 Settlement Agreement" means the agreement that
    the Authority made and entered into with the Chicago
    Regional Council of Carpenters, not including any
    revisions or amendments, and filed with the Illinois
    Secretary of State Index Department and designated as
    97-GA-A01.
        "Union employees" means workers represented by a labor
    organization, as defined in the National Labor Relations
    Act, providing skilled labor services to exhibitors, a show
    manager, or a show contractor on Authority premises.
 
(c) Exhibitor rights.
        In order to control costs, increase the
    competitiveness, and promote and provide for the economic
    stability of Authority premises, all Authority contracts
    with exhibitors, contractors, and managers shall include
    the following minimum terms and conditions:
        (1) Consistent with safety and the skills and training
    necessary to perform the task, as determined by the
    Authority, an exhibitor and exhibitor employees are
    permitted in a booth of any size with the use of the
    exhibitor's ladders and hand tools to:
            (i) set-up and dismantle exhibits displayed on
        Authority premises;
            (ii) assemble and disassemble materials,
        machinery, or equipment on Authority premises; and
            (iii) install all signs, graphics, props,
        balloons, other decorative items, and the exhibitor's
        own drapery, including the skirting of exhibitor
        tables, on the Authority's premises.
        (2) An exhibitor and exhibitor employees are permitted
    in a booth of any size to deliver, set-up, plug in,
    interconnect, and operate an exhibitor's electrical
    equipment, computers, audio-visual devices, and other
    equipment.
        (3) An exhibitor and exhibitor employees are permitted
    in a booth of any size to skid, position, and re-skid all
    exhibitor material, machinery, and equipment on Authority
    premises.
        (4) An exhibitor and exhibitor employees are
    prohibited at any time from using scooters, forklifts,
    pallet jacks, condors, scissors lifts, motorized dollies,
    or similar motorized or hydraulic equipment on Authority
    premises.
        (5) The Authority shall designate areas, in its
    discretion, where exhibitors may unload and load exhibitor
    materials from privately owned vehicles at Authority
    premises with the use of non-motorized hand trucks and
    dollies.
        (6) On Monday through Friday for any consecutive 8-hour
    period during the hours of 6:00 a.m. and 10:00 p.m., union
    employees on Authority premises shall be paid
    straight-time hourly wages plus fringe benefits. Union
    employees shall be paid straight-time and a half hourly
    wages plus fringe benefits for labor services provided
    after any consecutive 8-hour period; provided, however,
    that between the hours of midnight and 6:00 a.m. union
    employees shall be paid double straight-time wages plus
    fringe benefits for labor services.
        (7) On Monday through Friday for any consecutive 8-hour
    period during the hours of 6:00 a.m. and 10:00 p.m., a show
    manager or contractor shall charge an exhibitor only for
    labor services provided by union employees on Authority
    premises based on straight-time hourly wages plus fringe
    benefits along with a reasonable mark-up. After any
    consecutive 8-hour period, a show manager or contractor
    shall charge an exhibitor only for labor services provided
    by union employees based on straight-time and a half hourly
    wages plus fringe benefits along with a reasonable mark-up;
    provided, however, that between the hours of midnight and
    6:00 a.m. a show manager or contractor shall charge an
    exhibitor only for labor services provided by union
    employees based on double straight-time wages plus fringe
    benefits along with a reasonable mark-up.
        (8) (Blank). On Saturdays for any consecutive 8-hour
    period, union employees on Authority premises shall be paid
    straight-time and a half hourly wages plus fringe benefits.
    After any consecutive 8-hour period, union employees on
    Authority premises shall be paid double straight-time
    hourly wages plus fringe benefits; provided, however, that
    between the hours of midnight and 6:00 a.m. union employees
    shall be paid double straight-time wages plus fringe
    benefits for labor services.
        (9) (Blank). On Saturdays for any consecutive 8-hour
    period, a show manager or contractor shall charge an
    exhibitor only for labor services provided by union
    employees on Authority premises based on straight-time and
    a half hourly wages plus fringe benefits along with a
    reasonable mark-up. After any consecutive 8-hour period, a
    show manager or contractor shall charge an exhibitor only
    for labor services provided by union employees based on
    double straight-time hourly wages plus fringe benefits
    along with a reasonable mark-up; provided, however, that
    between the hours of midnight and 6:00 a.m. a show manager
    or contractor shall charge an exhibitor only for labor
    services provided by union employees based on double
    straight-time wages plus fringe benefits along with a
    reasonable mark-up.
        (10) (Blank). On Sundays and on State and federal
    holidays, union employees on Authority premises shall be
    paid double straight-time hourly wages plus fringe
    benefits.
        (11) (Blank). On Sundays and on State and federal
    holidays, a show manager or contractor shall charge an
    exhibitor only for labor services provided by union
    employees on Authority premises based on double
    straight-time hourly wages plus fringe benefits along with
    a reasonable mark-up.
        (12) The Authority has the power to determine, after
    consultation with the Advisory Council, the work
    jurisdiction and scope of work of union employees on
    Authority premises during the move-in, move-out, and run of
    a show, provided that any affected labor organization may
    contest the Authority's determination through a binding
    decision of an independent, third-party arbitrator. When
    making the determination, the Authority or arbitrator, as
    the case may be, shall consider the training and skills
    required to perform the task, past practices on Authority
    premises, safety, and the need for efficiency and exhibitor
    satisfaction. These factors shall be considered in their
    totality and not in isolation. The Authority's
    determination must be made in writing, set forth an
    explanation and statement of the reason or reasons
    supporting the determination, and be provided to each
    affected labor organization. The changes in this item (12)
    by this amendatory Act of the 97th General Assembly are
    declarative of existing law and shall not be construed as a
    new enactment. Nothing in this item permits the Authority
    to eliminate any labor organization representing union
    employees that provide labor services on the move-in,
    move-out, and run of the show as of the effective date of
    this amendatory Act of the 96th General Assembly.
        (13) (Blank). During the run of a show, all stewards of
    union employees shall be working stewards. Subject to the
    discretion of the Authority, no more than one working
    steward per labor organization representing union
    employees providing labor services on Authority premises
    shall be used per building and per show.
        (14) An exhibitor or show manager may request by name
    specific union employees to provide labor services on
    Authority premises consistent with all State and federal
    laws. Union employees requested by an exhibitor shall take
    priority over union employees requested by a show manager.
        (15) A show manager or show contractor on behalf of a
    show manager may retain an electrical contractor approved
    by the Authority or Authority-provisioned electrical
    services to provide electrical services on the premises. If
    a show manager or show contractor on behalf of a show
    manager retains Authority-provisioned electrical services,
    then the Authority shall offer these services at a rate not
    to exceed the cost of providing those services.
        (16) Crew sizes for any task or operation shall not
    exceed 2 persons unless, after consultation with the
    Advisory Council, the Authority determines otherwise based
    on the task, skills, and training required to perform the
    task and on safety.
        (17) An exhibitor may bring food and beverages on the
    premises of the Authority for personal consumption.
        (18) Show managers and contractors shall comply with
    any audit performed under subsection (e) of this Section.
        (19) A show manager or contractor shall charge an
    exhibitor only for labor services provided by union
    employees on Authority premises on a minimum half-hour
    basis.
    The Authority has the power to implement, enforce, and
administer the exhibitor rights set forth in this subsection,
including the promulgation of rules. The Authority also has the
power to determine violations of this subsection and implement
appropriate remedies, including, but not limited to, barring
violators from Authority premises. The provisions set forth in
this Section are binding and equally applicable to any show
conducted at Navy Pier, and this statement of the law is
declarative of existing law and shall not be construed as a new
enactment. The Authority may waive the applicability of only
item (6) of this subsection (c) to the extent necessary and
required to comply with paragraph 1 of Section F of the 2011
Settlement Agreement, as set forth on Page 12 of that
Agreement.
 
(d) Advisory Council.
        (1) An Advisory Council is hereby established to ensure
    an active and productive dialogue between all affected
    stakeholders to ensure exhibitor satisfaction for
    conventions, exhibitions, trade shows, and meetings held
    on Authority premises.
        (2) The composition of the Council shall be determined
    by the Authority consistent with its existing practice for
    labor-management relations.
        (3) The Council shall hold meetings no less than once
    every 90 days.
 
(e) Audit of exhibitor rights.
    The Authority shall retain the services of a person to
complete, at least twice per calendar year, a financial
statement audit and compliance attestation examination to
determine and verify that the exhibitor rights set forth in
this Section have produced cost reductions for exhibitors and
those cost reductions have been fairly passed along to
exhibitors. The financial statement audit shall be performed in
accordance with generally accepted auditing standards. The
compliance attestation examination shall be (i) performed in
accordance with attestation standards established by the
American Institute of Certified Public Accountants and shall
examine the compliance with the requirements set forth in this
Section and (ii) conducted by a licensed public accounting
firm, selected by the Authority from a list of firms
prequalified to do business with the Illinois Auditor General.
Upon request, a show contractor or manager shall provide the
Authority or person retained to provide auditing services with
any information and other documentation reasonably necessary
to perform the obligations set forth in this subsection. Upon
completion, the report shall be submitted to the Authority and
made publicly available on the Authority's website.
 
(f) Exhibitor service reforms. The Authority shall make every
effort to substantially reduce exhibitor's costs for
participating in shows.
        (1) Any contract to provide food or beverage services
    in the buildings and facilities of the Authority, except
    Navy Pier, shall be provided at a rate not to exceed the
    cost established in the contract. The Board shall
    periodically review all food and beverage contracts.
        (2) A department or unit of the Authority shall not
    serve as the exclusive provider of electrical services.
        (3) Exhibitors shall receive a detailed statement of
    all costs associated with utility services, including the
    cost of labor, equipment, and materials.
 
(g) Severability. If any provision of this Section or its
application to any person or circumstance is held invalid, the
invalidity of that provision or application does not affect
other provisions or applications of this Section that can be
given effect without the invalid provision or application.
(Source: P.A. 96-898, eff. 5-27-10; 96-899, eff. 5-28-10.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.