Bill Text: IL SB2171 | 2011-2012 | 97th General Assembly | Amended

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Bill Title: Amends the Property Tax Code. Makes a technical change in a Section concerning exemptions for property used for charitable purposes.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Failed) 2013-01-08 - Session Sine Die [SB2171 Detail]

Download: Illinois-2011-SB2171-Amended.html

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Sen. James F. Clayborne, Jr.

Filed: 3/14/2011

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AMENDMENT TO SENATE BILL 2171
AMENDMENT NO. ______. Amend Senate Bill 2171 by replacing
everything after the enacting clause with the following:
"Section 5. 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.
(a) Notwithstanding anything in this Code to the contrary,
all property owned by a municipality with a population of over
500,000 inhabitants, 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, or a municipality with home rule powers that is
contiguous to a municipality with a population of over 500,000
inhabitants, or property that as of December 31, 2010 is exempt

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from real estate taxes and is owned by a tax-exempt entity,
shall remain exempt from taxation and any leasehold interest in
that property shall not be subject to taxation under Section
9-195 if 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 lessee municipality or unit of local government (i) a right
to use, control, and possess the property either directly or
through its exempt subsidiary or affiliate or (ii) a right for
the municipality or unit of local government 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 shall no
longer be exempt under this subsection as of the date when the
right of the lessee municipality or unit of local government to
use, control, and possess the property or for the municipality
or unit of local government to require the performance of
services is terminated and the lessee municipality or unit of
local government no longer has any option to purchase or
otherwise reacquire the interest in the property to the extent
that such an option or right of reacquisition was part of the
lease or a provision of the original sale 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

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500,000 inhabitants, 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, or a municipality with home rule powers that is
contiguous to 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.

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(Source: P.A. 96-779, eff. 8-28-09.)
Section 10. The Local Government Facility Lease Act is
amended by changing Sections 5, 20, 25, 30, 35, and 40 as
follows:
(50 ILCS 615/5)
Sec. 5. Definitions. As used in this Act:
"Covered entity" means a municipality or other unit of
local government or an entity receiving tax-exempt status
pursuant to Section 501(c)(3) of the Internal Revenue Code.
"Facility property" means property owned or leased by a
covered entity 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 covered entity municipality or other unit
of local government for a public purpose 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 or subleased by a covered entity to a private entity for
continued use for the same public airport, parking, or waste
disposal or processing purpose as that of the covered entity at
the time of the lease.

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"Lease" means a lease or sublease between a covered entity
and a private entity.
"Lessee" means the lessee or sublessee in a lease or
sublease between a covered entity and a private entity.
"Lessor" means the lessor or sublessor in a lease or
sublease between a covered entity and a private entity.
"Public purpose" means any project or facility that is
acquired, constructed, improved, rehabilitated, reconstructed,
replaced, or maintained by a covered entity and that is
acquired or undertaken for the benefit of the community.
"Public purpose" includes, but is not limited to, a hospital or
any other facility created or established for the purpose of
providing medical services or treatment, an airport, a parking
facility, or a waste disposal or processing facility. "Public
purpose" does not include use for the purpose of any airport
property, as defined under Section 10 of the O'Hare
Modernization Act.
(Source: P.A. 94-750, eff. 5-9-06.)
(50 ILCS 615/20)
Sec. 20. Use of sale or lease proceeds by lessor.
(a) With respect to any leased facility property that is
sold by a covered entity and subsequently leased back by that
covered entity used for airport purposes, at least 90% of the
net proceeds of the sale lease shall be expended or obligated
by the covered entity lessor municipality for:

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(i) the construction and maintenance of infrastructure
within the municipality where the property is located;
(ii) contributions to pension funds created for
municipal employees employed by the lessee of leased
facility property or municipal employees within the
municipality where the property is located; or
(iii) any combination of (i) or (ii).
(b) With respect to any leased facility property, at least
90% of the net proceeds of the lease shall be expended or
obligated by the covered entity for:
(i) the construction and maintenance of infrastructure
within the municipality where the property is located;
(ii) contributions to pension funds created for
employees employed by the lessee of leased facility
property or municipal employees within the municipality
where the property is located; or
(iii) any combination of (i) or (ii).
(c) (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), and the amount of net proceeds expended or obligated for
item (ii) in subsection (b) may not exceed the amount of net
proceeds expended or obligated for item (i) in subsection (b).
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 facility

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property or leased facility property or otherwise required to
be paid out of the lease proceeds of the sale or lease.
(Source: P.A. 94-750, eff. 5-9-06.)
(50 ILCS 615/25)
Sec. 25. Project labor agreements for projects funded by
sale or airport lease proceeds. With respect to the
construction of public works funded by the proceeds described
in Section 20 of this Act, 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
covered entity 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

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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.
(Source: P.A. 94-750, eff. 5-9-06.)
(50 ILCS 615/30)
Sec. 30. Labor neutrality and card check procedure
agreement at the leased facility 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

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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.
(Source: P.A. 94-750, eff. 5-9-06.)
(50 ILCS 615/35)
Sec. 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 covered
entity 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
covered entity's lessor's employees who previously performed
that work. The covered entity lessor shall certify to the

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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, the Economic Development Area Tax Increment Allocation
Act, and the Illinois Health Facilities Planning Act.
(Source: P.A. 94-750, eff. 5-9-06.)
(50 ILCS 615/40)
Sec. 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 covered entity municipality who are
employed, at the time of the lease, with respect to the
facility property used for airport purposes; and
(2) the covered entity municipality must offer
employment in another department, division, or unit of the
covered entity municipality, under substantially similar
terms and conditions, to employees of the covered entity
municipality who are employed, at the time of the lease,
with respect to the facility property used for airport
purposes.
(Source: P.A. 94-750, eff. 5-9-06.)".