HB0476ham001 94TH GENERAL ASSEMBLY

State Government Administration Committee

Filed: 3/2/2005

09400HB0476ham001 LRB094 07471 RCE 42746 a

AMENDMENT TO HOUSE BILL 476

AMENDMENT NO. ______. Amend House Bill 476 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Procurement Code is amended by changing Section 53-10 as follows:

(30 ILCS 500/53-10)

Sec. 53-10. Concessions and leases of State property.

(a) Except for property under the jurisdiction of a public institution of higher education, concessions, including the assignment, license, sale, or transfer of interests in or rights to discoveries, inventions, patents, or copyrightable works, may be entered into by the State agency with jurisdiction over the property, whether tangible or intangible. Licenses of naming rights and sponsorship rights, as those terms are defined and used in Section 7.6 of the State Property Control Act, are not concessions and are not subject to this Code except to the extent provided in that Section 7.6.

(b) Except for property under the jurisdiction of a public institution of higher education, all concessions shall be reduced to writing and shall be awarded under the provisions of Article 20, except that the contract shall be awarded to the highest and best bidder or offeror.

(Source: P.A. 90-572, eff. date - See Sec. 99-5.)

Section 10. The State Property Control Act is amended by adding Section 7.6 as follows:

(30 ILCS 605/7.6 new)

Sec. 7.6. Naming and sponsorship rights; licenses.

(a) Administrator's authority. Notwithstanding any other provision of this Act or any other law to the contrary, the administrator is authorized to license naming rights and sponsorship rights only as provided in this Section. Naming rights and sponsorship rights regarding any property or other asset of the State, whether real, personal, tangible, or intangible, may not be sold, conveyed, leased, licensed, or otherwise granted by the administrator or by any other officer, employee, or agent of the State on or after the effective date of this amendatory Act of the 94th General Assembly unless authorized in this Section.

(b) Excepted properties. Naming rights and sponsorship rights may not be licensed with respect to any of the following:

(1) the State Capitol Building in Springfield, Illinois;

(2) the Old State Capitol Building in Springfield, Illinois;

(3) the Vandalia State House in Vandalia, Illinois;

(4) the Executive Mansion in Springfield, Illinois;

(5) the Executive Mansion, also known as the Hayes House, in Du Quoin, Illinois;

(6) the Abraham Lincoln Home in Springfield, Illinois, if it becomes State real property not under the jurisdiction of the federal government;

(7) the Lincoln Tomb in Springfield, Illinois;

(8) the Abraham Lincoln Presidential Library and Museum in Springfield, Illinois;

(9) all present and future Abraham Lincoln sites not otherwise listed;

(10) all Illinois homes of all past, present, or future United States Presidents who have resided, currently reside, or in the future will reside in the State of Illinois;

(11) the burial sites of all past, present, or future United States Presidents;

(12) any State property or other asset under the jurisdiction and control of an executive branch constitutional officer other than the Governor, unless that other executive branch constitutional officer consents in writing;

(13) any State property or other asset under the jurisdiction and control of the legislative branch, unless the Joint Committee on Legislative Support Services consents in writing;

(14) any State property or other asset under the jurisdiction and control of the judicial branch, unless the Supreme Court consents in writing;

(15) any State property or other asset under the jurisdiction and control of a public institution of higher education, as defined in Section 1 of the Board of Higher Education Act, unless the applicable institution consents in writing; that consent may designate a particular fund or account of the institution into which fees under the license shall be deposited;

(16) any State property or other asset identified or named for a specific individual by Joint Resolution of the General Assembly or by statute as of the effective date of this Section or later; and

(17) any other State property or asset that on the effective date of this Section or later is designated a National Historic Landmark, listed as a State Historic Site under Section 6 of the Historic Preservation Agency Act, or listed on either the Illinois Register of Historic Places or the National Register of Historic Places, unless the State property is a university sports stadium and the federal or State agency that made the designation has the authority to consent and does consent in writing.

(c) Terms and conditions of licenses. A license of naming rights or sponsorship rights may have a term of no more than 5 years, is non-transferable, and is non-renewable (at the end of a term of a license, however, the licensee is eligible to compete for a new license as provided in subsection (d)). The licensee shall have the authority to place signs, placards, imprints, or other identifying information only on the properties or other assets specified in the license and only during the term of the license. The signs, placards, imprints, or other identifying information may contain nothing other than the name of the licensee, the licensee's logo, or both, except that with the written approval of the administrator they may contain other material. The license may, but need not, require the State to refer to a property or other asset by the name of the licensee during the term of the license, all within reasonable limitations and other than in statutes, rules, and existing supplies of forms and other documents. If a licensee materially breaches any term of a license and the Executive Ethics Commission recommends that the license be revoked, then the administrator may declare the license revoked. At least 25% of the total amount of license fees must be paid prior to the commencement of the term of the license. Any balance shall be paid on a periodic schedule agreed to by the administrator. All fees are non-refundable and shall be deposited into the General Revenue Fund, except that if a fund or account of a public institution of higher education has been designated in a consent given by that institution, fees under the applicable license shall be deposited into the designated fund or account.

(d) Competitive negotiation. A license of naming rights or sponsorship rights may be granted only on the basis of the highest and best competitively negotiated proposals that yield the most advantageous benefits and considerations to the State. The administrator shall give notice that the administrator will accept proposals for the licensing of naming rights or sponsorship rights with respect to specified properties or other assets by publication in the Illinois Procurement Bulletin not less than 7 business days before the day upon which proposals will be accepted. The administrator shall give such other notice as the administrator deems appropriate. Proposals shall not be sealed and shall be part of the public record. The administrator shall conduct open, competitive negotiations with those who have submitted proposals in order to obtain the highest and best competitively negotiated proposals that yield the most advantageous benefits and considerations to the State. If a proposal satisfactory to the administrator is not negotiated, the administrator may give notice as provided in this subsection and accept additional proposals.

Subject to the provisions of this Section, the administrator shall have all power necessary to grant the license and enter into any agreements and execute any documents necessary to exercise the authority granted by this Section. The administrator shall have authority to order such surveys, abstracts of title, or commitments for title insurance as may, in the administrator's reasonable discretion, be deemed necessary to demonstrate good and marketable title to the naming rights or sponsorship rights.

(e) Qualification of proposers and licensees. An individual or entity that wishes to submit a proposal must be prequalified by the administrator. Neither the name, logo, products, services, nor business relationships of the proposer shall be such as to bring disrepute upon the State if associated with any State property or other asset. To prequalify, a proposer must satisfy the administrator that the proposer meets all of the ethics requirements applicable to contractors and bidders and to their officers, agents, and employees under Sections 50-5 (bribery), 50-10 (felons), 50-11 (debt delinquency), 50-13 (conflicts of interest), 50-25 (inducement), 50-30 (revolving door), 50-35 (disclosure), 50-40 (anticompetitive practices), 50-50 (insider information), 50-65 (suspension), and 50-70 (additional provisions) of the Illinois Procurement Code. Each license granted under this Section is deemed to contain a provision that it is a material breach of the license if the licensee becomes ineligible to be prequalified or otherwise becomes disqualified under this subsection.

(f) Approval by Executive Ethics Commission. Upon determining highest and best proposals, the administrator must deliver a written notice setting forth all of the pertinent facts relating to proposals, proposers, and proposed licenses to the Executive Ethics Commission. A license shall not be granted unless approved in advance by the Commission. If the administrator proposes to amend an existing license, the administrator must deliver notice of the proposed amendment to the Commission, and the amendment shall not be made unless approved in advance by the Commission. The Commission's review shall be based solely on ethical and ethics related standards imposed by the law and on avoiding the appearance of impropriety. The Commission shall act with reasonable promptness in approving or disapproving proposals. The Commission's approval shall not be unreasonably withheld.

(g) Rules. The administrator and the Executive Ethics Commission may each, separately, adopt rules to implement their several functions under this Section. The rules may not, however, waive or provide for the waiver of any of the requirements of this Section.

(h) Donations. If one or more natural persons, as such, make a gift, bequest, or devise with a fair market value in excess of $5,000,000 of land or that is used to acquire land, construct a new building, or both, then, at the request of the State officer or agency with jurisdiction and control of the land, building, or both and with the approval of the Executive Ethics Commission as provided in subsection (f), the administrator may grant a license under this Section that is (i) for a term in excess of 5 years, renewable, or both, (ii) with minimal or no consideration, and (iii) without competitive negotiation under subsection (d).

(i) Blind vendors. The provisions of this Section are subject to, and do not supersede, any of the provisions of the Blind Persons Operating Vending Facilities Act, any other State or federal law granting preference to blind persons, or any rules or regulations adopted pursuant to any of those laws.

(j) Definitions. In this Section:

"Naming rights" means the right to associate the name or identifying mark of any person or entity with the name or identity of any State property or other asset.

"Sponsorship rights" means the right to associate the name or identifying mark of any person or entity with any State program or event on the grounds of, in, or with respect to any State property or other asset.

(k) This Section shall be construed to ensure that all naming and sponsorship rights are strictly controlled under the terms of this Section.

(l) Severability. The provisions of this Section are severable under Section 1.31 of the Statute on Statutes.

Section 99. Effective date. This Act takes effect September 1, 2005.".