Bill Text: IL HB5838 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Sports Facilities Authority Act. Creates the Illinois Minor League Stadium Fund as a special fund in the State treasury. Allows moneys in the Fund to be used by the Illinois Sports Facilities Authority for capital improvements at facilities that host professional sporting events for teams that are not in the National Basketball Association, National Football League, National Hockey League, or Major League Baseball. If new stadiums or arenas for Illinois teams in the National Basketball Association, National Football League, National Hockey League, or Major League Baseball are approved by the Authority, requires the Authority to include, in the final agreement for those facilities, funding for the Illinois Minor League Stadium Fund for stadiums and arenas that do not host professional sporting events for teams that play in the National Football League, the National Hockey League, National Basketball Association, or Major League Baseball. Amends the State Finance Act to make a conforming change. Effective July 1, 2024.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2024-05-09 - Added Chief Co-Sponsor Rep. Kimberly Du Buclet [HB5838 Detail]

Download: Illinois-2023-HB5838-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5838 Introduced , by Rep. Fred Crespo SYNOPSIS AS INTRODUCED:
30 ILCS 105/5.1015 new
70 ILCS 3205/8 from Ch. 85, par. 6008
70 ILCS 3205/9 from Ch. 85, par. 6009
Amends the Illinois Sports Facilities Authority Act. Creates the Illinois Minor League Stadium Fund as a special fund in the State treasury. Allows moneys in the Fund to be used by the Illinois Sports Facilities Authority for capital improvements at facilities that host professional sporting events for teams that are not in the National Basketball Association, National Football League, National Hockey League, or Major League Baseball. If new stadiums or arenas for Illinois teams in the National Basketball Association, National Football League, National Hockey League, or Major League Baseball are approved by the Authority, requires the Authority to include, in the final agreement for those facilities, funding for the Illinois Minor League Stadium Fund for stadiums and arenas that do not host professional sporting events for teams that play in the National Football League, the National Hockey League, National Basketball Association, or Major League Baseball. Amends the State Finance Act to make a conforming change. Effective July 1, 2024.
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A BILL FOR
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AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Finance Act is amended by adding
Section 5.1015 as follows:
(30 ILCS 105/5.1015 new)
Sec. 5.1015. The Illinois Minor League Stadium Fund.
Section 10. The Illinois Sports Facilities Authority Act
is amended by changing Sections 8 and 9 as follows:
(70 ILCS 3205/8) (from Ch. 85, par. 6008)
Sec. 8. Powers. In addition to the powers set forth
elsewhere in this Act, the Authority may:
(1) Adopt and alter an official seal;
(2) Sue and be sued, plead and be impleaded, all in its
own name, and agree to binding arbitration of any dispute
to which it is a party;
(3) Adopt bylaws, rules, and regulations to carry out
the provisions of this Section;
(4) Maintain an office or offices at such place as the
Authority may designate;
(5) Employ, either as regular employees or independent

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contractors, consultants, engineers, architects,
accountants, attorneys, financial experts, construction
experts and personnel, superintendents, managers and other
professional personnel, and such other personnel as may be
necessary in the judgment of the Authority, and fix their
compensation;
(6) Determine the locations of, develop, design,
establish, construct, erect, acquire, own, repair,
reconstruct, renovate, remodel, add to, extend, improve,
equip, operate, regulate and maintain facilities, and
provide financial assistance to governmental owners or
their tenants, or both, pursuant to an assistance
agreement to do the foregoing, in each case to the extent
necessary to accomplish the purposes of the Authority;
(7) Acquire, hold, lease as lessor or as lessee, use,
encumber, transfer, or dispose of real and personal
property, including the alteration of or demolition of
improvements to real estate;
(8) Enter into contracts of any kind;
(9) Regulate the use and operation of facilities that
are developed under the provisions of this Act;
(10) Enter into one or more management agreements
which conform to the requirements of this Act and which
may contain such provisions as the Authority shall
determine, including, without limitation, (i) provisions
allocating receipts from rents, rates, fees and charges

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for use of the facility or for services rendered in
connection with the facility between the Authority and the
tenant of the facility; (ii) provisions providing for or
limiting payments to the Authority for use of the facility
based on levels of attendance or receipts, or both
attendance and receipts, of the tenant from admission
charges, parking concessions, advertising, radio and
television and other sources; (iii) provisions obligating
the Authority to make payments to the tenant with respect
to expenses of routine maintenance and operation of any
facility and operating expenses of the tenant with respect
to use of the facility; (iv) provisions requiring the
Authority to pay liquidated damages to the tenant for
failure of timely completion of construction of any new
facility; (v) provisions permitting the Authority to grant
rent-free occupancy of an existing facility pending
completion of construction of any new facility and
requiring the Authority to pay certain incremental costs
of maintenance, repair, replacement and operation of an
existing facility in the event of failure of timely
completion of construction of any new facility; (vi)
provisions requiring the Authority to reimburse the tenant
for certain State and local taxes and provisions
permitting reductions of payments due the Authority by the
tenant or reimbursement of the tenant by the Authority in
the event of imposition of certain new State and local

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taxes, or the increase above specified levels of certain
existing State and local taxes, or both; (vii) provisions
obligating the Authority to purchase tickets to events
conducted by the tenant based upon specified attendance
levels; (viii) provisions granting the tenant the right
and option to extend the term of the management agreement;
(ix) provisions creating an assignment and pledge by the
Authority of certain of the Authority's revenues and
receipts to be received under Section 19 of this Act for
the benefit of the tenant of the facility as further
security for performance by the Authority of its
obligations under the management agreement; and (x)
provisions requiring the establishment of reserves by the
Authority or by the tenant, or both, as further security
for the performance of their respective obligations under
the management agreement;
(11) Enter into one or more assistance agreements that
conform to the requirements of this Act and that may
contain such provisions as the Authority shall determine
establishing the rights and obligations of the Authority
and the governmental owner or a tenant, or both, with
respect to the facility for which the Authority is to
provide financial assistance including, without
limitation, such provisions as are described in paragraph
(10) of this Section;
(12) Borrow money from any source for any corporate

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purpose, including working capital for its operations,
reserve funds, or interest, and to mortgage, pledge or
otherwise encumber the property or funds of the Authority
and to contract with or engage the services of any person
in connection with any financing, including financial
institutions, issuers of letters of credit, or insurers
and enter into reimbursement agreements with this person
which may be secured as if money were borrowed from the
person;
(13) Issue bonds or notes under Section 13 of this
Act;
(14) Receive and accept from any source, private or
public, contributions, gifts, or grants of money or
property;
(15) Make loans from proceeds or funds otherwise
available to the extent necessary or appropriate to
accomplish the purposes of the Authority;
(16) Provide for the insurance of any property,
operations, officers, agents or employees of the Authority
against any risk or hazard and to provide for the
indemnification of its members, employees, contractors or
agents against any and all risks;
(17) Provide relocation assistance and compensation
for landowners and their lessees displaced by any land
acquisition of the Authority, including the acquisition of
land and construction of replacement housing thereon as

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the Authority shall determine;
(18) Sell, convey, lease, or grant a permit or license
with respect to, or by agreement authorize another person
on its behalf to sell, convey, lease, or grant a permit or
license with respect to (A) the right to use or the right
to purchase tickets to use, or any other interest in, any
seat or area within a facility, (B) the right to name or
place advertising in all or any part of a facility, or (C)
any intangible personal property rights, including
intellectual property rights, appurtenant to any facility,
the proceeds of which are used for the purpose of carrying
out the powers granted by the Act;
(18.5) Provide capital grants from the Illinois Minor
League Stadium Fund;
(19) Adopt such rules as are necessary to carry out
those powers conferred and perform those duties required
by this Act;
(20) Exercise all the corporate powers granted
Illinois corporations under the Business Corporation Act
of 1983, except to the extent that powers are inconsistent
with those of a body politic and corporate of the State;
and
(21) Do all things necessary or convenient to carry
out the powers granted by this Act.
The Authority may not construct or enter into a contract
to construct more than one new stadium facility and may not

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enter into assistance agreements providing for the
reconstruction, renovation, remodeling, extension, or
improvement of all or substantially all of more than one
existing facility unless authorized by law.
The Authority may adopt such rules pursuant to the
Illinois Administrative Procedure Act as are necessary to
carry out those powers and duties conferred by this Act. The
Authority may initially adopt, by January 1, 1989, such rules
as emergency rules in accordance with the provisions of
Section 5-45 of the Illinois Administrative Procedure Act. For
purposes of the Illinois Administrative Procedure Act, the
adoption of the initial rules shall be deemed to be an
emergency and necessary for the public interest, safety and
welfare.
(Source: P.A. 91-935, eff. 6-1-01.)
(70 ILCS 3205/9) (from Ch. 85, par. 6009)
Sec. 9. Duties. In addition to the powers set forth
elsewhere in this Act, subject to the terms of any agreements
with the holders of the Authority's bonds or notes, the
Authority shall:
(1) Comply with all zoning, building, and land use
controls of the municipality within which is located any
stadium facility owned by the Authority or for which the
Authority provides financial assistance.
(2) With respect to a facility owned or to be owned by

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the Authority, enter or have entered into a management
agreement with a tenant of the Authority to operate the
facility that requires the tenant to operate the facility
for a period at least as long as the term of any bonds
issued to finance the development, establishment,
construction, erection, acquisition, repair,
reconstruction, remodeling, adding to, extension,
improvement, equipping, operation, and maintenance of the
facility. Such agreement shall contain appropriate and
reasonable provisions with respect to termination, default
and legal remedies.
(3) With respect to a facility owned or to be owned by
a governmental owner other than the Authority, enter into
an assistance agreement with either a governmental owner
of a facility or its tenant, or both, that requires the
tenant, or if the tenant is not a party to the assistance
agreement requires the governmental owner to enter into an
agreement with the tenant that requires the tenant to use
the facility for a period at least as long as the term of
any bonds issued to finance the reconstruction,
renovation, remodeling, extension or improvement of all or
substantially all of the facility.
(4) Create and maintain a separate financial reserve
for repair and replacement of capital assets of any
facility owned by the Authority or for which the Authority
provides financial assistance and deposit into this

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reserve not less than $1,000,000 per year for each such
facility beginning at such time as the Authority and the
tenant, or the Authority and a governmental owner of a
facility, as applicable, shall agree.
(5) In connection with prequalification of general
contractors for the construction of a new stadium facility
or the reconstruction, renovation, remodeling, extension,
or improvement of all or substantially all of an existing
facility, the Authority shall require submission of a
commitment detailing how the general contractor will
expend 25% or more of the dollar value of the general
contract with one or more minority-owned businesses and 5%
or more of the dollar value with one or more women-owned
businesses. This commitment may be met by contractor's
status as a minority-owned businesses or women-owned
businesses, by a joint venture or by subcontracting a
portion of the work with or by purchasing materials for
the work from one or more such businesses, or by any
combination thereof. Any contract with the general
contractor for construction of the new stadium facility
and any contract for the reconstruction, renovation,
remodeling, adding to, extension or improvement of all or
substantially all of an existing facility shall require
the general contractor to meet the foregoing obligations
and shall require monthly reporting to the Authority with
respect to the status of the implementation of the

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contractor's affirmative action plan and compliance with
that plan. This report shall be filed with the General
Assembly. The Authority shall establish and maintain an
affirmative action program designed to promote equal
employment opportunity which specifies the goals and
methods for increasing participation by minorities and
women in a representative mix of job classifications
required to perform the respective contracts. The
Authority shall file a report before March 1 of each year
with the General Assembly detailing its implementation of
this paragraph. The terms "minority-owned businesses",
"women-owned businesses", and "business owned by a person
with a disability" have the meanings given to those terms
in the Business Enterprise for Minorities, Women, and
Persons with Disabilities Act.
(6) Provide for the construction of any new facility
pursuant to one or more contracts which require delivery
of a completed facility at a fixed maximum price to be
insured or guaranteed by a third party determined by the
Authority to be financially capable of causing completion
of such construction of the new facility.
In connection with any assistance agreement with a
governmental owner that provides financial assistance for a
facility to be used by a National Football League team, the
assistance agreement shall provide that the Authority or its
agent shall enter into the contract or contracts for the

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design and construction services or design/build services for
such facility and thereafter transfer its rights and
obligations under the contract or contracts to the
governmental owner of the facility. In seeking parties to
provide design and construction services or design/build
services with respect to such facility, the Authority may use
such procurement procedures as it may determine, including,
without limitation, the selection of design professionals and
construction managers or design/builders as may be required by
a team that is at risk, in whole or in part, for the cost of
design and construction of the facility.
An assistance agreement may not provide, directly or
indirectly, for the payment to the Chicago Park District of
more than a total of $10,000,000 on account of the District's
loss of property or revenue in connection with the renovation
of a facility pursuant to the assistance agreement.
The Illinois Minor League Stadium Fund is created as a
special fund in the State treasury. Moneys in the Fund shall be
used by the Authority for capital improvements at facilities
that host professional sporting events for teams that are not
in the National Basketball Association, National Football
League, National Hockey League, or Major League Baseball. If
new stadiums or arenas for Illinois teams in the National
Basketball Association, National Football League, National
Hockey League, or Major League Baseball are approved by the
Authority, the Authority shall include, in the final agreement

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for those facilities, funding for the Illinois Minor League
Stadium Fund for stadiums and arenas that do not host
professional sporting events for teams that play in the
National Football League, the National Hockey League, National
Basketball Association, or Major League Baseball.
(Source: P.A. 100-391, eff. 8-25-17.)