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| Public Act 097-0629
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| SB1992 Enrolled | LRB097 09282 PJG 49417 b |
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AN ACT concerning State government.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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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 |
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being made to this Act are consistent with the settlement |
agreement or declarative of existing law.
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Section 5. The Metropolitan Pier and Exposition Authority |
Act is amended by reenacting and changing Section 5.4 as |
follows:
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(70 ILCS 210/5.4) |
Sec. 5.4. Exhibitor rights and work rule reforms.
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(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. |
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(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 |
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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 |
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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, |
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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, |
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labor unions, show contractors, show managers, and |
exhibitors.
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(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 |
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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.
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(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 |
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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. |
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(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 |
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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 |
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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 |
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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 |
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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 |
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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.
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(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.
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(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 |
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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.
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(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 |
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cost of labor, equipment, and materials.
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(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.
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(Source: P.A. 96-898, eff. 5-27-10; 96-899, eff. 5-28-10.)
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