HB1075sam002 96TH GENERAL ASSEMBLY

Sen. Toi W. Hutchinson

Filed: 4/30/2010

09600HB1075sam002 LRB096 08000 AJT 40753 a

AMENDMENT TO HOUSE BILL 1075

AMENDMENT NO. ______. Amend House Bill 1075, AS AMENDED, by replacing everything after the enacting clause with the following:

"Section 1. Short title. This Act may be cited as the Illiana Expressway Public-Private Partnerships for Transportation Act.

Section 5. Public policy and legislative intent.

(a) It is the public policy of the State of Illinois to promote the development, financing, and operation of transportation facilities that serve the needs of the public, whether through traditional or innovative methods.

(b) Several states, including the State of Indiana, have utilized public-private partnerships as a successful and innovative method to develop, finance, and operate transportation facilities in a timely, efficient, and cost-effective fashion and thereby advancing the public's needs and interests.

(c) The State of Illinois and the State of Indiana have undertaken cooperative planning efforts to create a new interstate highway connecting Interstate Highway 55 in Illinois to Interstate Highway 65 in Indiana to serve the public, commonly known as the Illiana Expressway.

(d) The creation of the Illiana Expressway will promote development and investment in the State of Illinois and serve as a critical transportation in the region.

(e) The State of Indiana will develop, finance, and operate its portion of the Illiana Expressway as a public-private partnership through existing statutory authority.

(f) To ensure that the State of Illinois remains at the forefront of providing premier transportation facilities and Illinois continues its cooperative efforts with the State of Indiana, it is in the public interest to permit the Department of Transportation, on a pilot-project basis, to enter into a public-private partnership to develop, finance, and operate the new Illiana Expressway.

(g) This Act is intended to be used as a framework for future public-private partnerships authorized by law based upon the State of Illinois' experience with creating the Illiana Expressway via public-private partnership.

(h) It is the intent of this Act to encourage the practice of congestion pricing in connection with the Illiana Expressway as a toll highway, pursuant to which higher toll rates are charged during times or in locations of most congestion.

(i) It is the intent of this Act to use Illinois design professionals, construction companies, and workers to the greatest extent permitted by law by offering them the right to compete for this work.

Section 10. Definitions.

As used in this Act:

"Approved proposal" means the proposal that is approved by the Department pursuant to subsection (h) of Section 20 of this Act.

"Approved proposer" means the private entity whose proposal is the approved proposal.

"Competing proposal" means a proposal submitted by a private entity in connection with the proposed Illiana Expressway.

"Contractor" means a private entity that has entered into the public-private agreement with the Department to provide services to or on behalf of the Department.

"Department" means the Illinois Department of Transportation.

"Develop" or "development" means to do one or more of the following: plan, design, develop, lease, acquire, install, construct, reconstruct, rehabilitate, extend, or expand.

"Illiana" means the fully access-controlled Illiana Expressway connecting northwestern Indiana and northeastern Illinois, as a toll or non-toll facility, connecting Interstate 55 in northeastern Illinois with Interstate 65 in northwestern Indiana.

"Maintain" or "maintenance" includes ordinary maintenance, repair, rehabilitation, capital maintenance, maintenance replacement, and any other categories of maintenance that may be designated by the Department.

"Metropolitan planning organization" means a metropolitan planning organization designated under 23 U.S.C. Section 134 whose metropolitan planning area boundaries are partially or completely within the State.

"Operate" or "operation" means to do one or more of the following: maintain, improve, equip, modify, or otherwise operate.

"Private entity" means any combination of one or more individuals, corporations, general partnerships, limited liability companies, limited partnerships, joint ventures, business trusts, nonprofit entities, or other business entities that are parties to a proposal for Illiana or an agreement related to Illiana. A public agency may provide services to a contractor as a subcontractor or subconsultant without affecting the private status of the private entity and the ability to enter into the public-private agreement.

"Procurement Policy Board" has the meaning ascribed to that term by Section 1-15.05 and Article 5 of the Illinois Procurement Code.

"Proposal" means all materials and documents prepared by or on behalf of a private entity relating to the proposed development, financing, or operation of Illiana.

"Proposer" means a private entity that has submitted a proposal or statement of qualifications for the public-private agreement in response to a request for proposals or a request for qualifications issued by the Department under this Act.

"Public-private agreement" means the public-private agreement between the contractor and the Department relating to the development, financing, or operation of Illiana that is entered into under this Act.

"Request for proposals" means all materials and documents prepared by or on behalf of the Department to solicit proposals from private entities to enter into the public-private agreement.

"Request for qualifications" means all materials and documents prepared by or on behalf of the Department to solicit statements of qualification from private entities to enter into the public-private agreement.

"Revenues" means all revenues, including any combination of: income; earnings and interest; user fees; lease payments; allocations; federal, State, and local appropriations, grants, loans, lines of credit, and credit guarantees; bond proceeds; equity investments; service payments; or other receipts; arising out of or in connection with Illiana, including the development, financing, and operation of Illiana. The term includes money received as grants, loans, lines of credit, credit guarantees, or otherwise in aid of Illiana from the federal government, the State, a unit of local government, or any agency or instrumentality of the federal government, the State, or a unit of local government.

"Unit of local government" has the meaning ascribed to that term in Article VII, Section 1 of the Constitution of the State of Illinois and also means any unit designated as a municipal corporation.

"User fees" or "tolls" means the rates, tolls, fees, or other charges imposed by the contractor for use of all or a portion of Illiana under the public-private agreement.

Section 15. Formation of Illiana public-private agreement; project planning.

(a) The Department may exercise the powers granted by this Act to do some or all of: develop, finance, and operate any part of Illiana through public-private agreements with one or more private entities. The net proceeds arising out of the public-private agreement undertaken by the Department pursuant to this Act shall be deposited into the Road Fund.

(b) A contractor has:

(1) all powers allowed by law generally to a private entity having the same form of organization as the contractor; and

(2) the power to develop, finance, and operate Illiana and to impose user fees in connection with the use of Illiana, subject to the terms of the public-private agreement.

No tolls or user fees may be imposed by the contractor except as set forth in the public-private agreement.

(c) At least 30 days prior to the beginning of the Department's fiscal year, the Department shall submit a description of the potential Illiana project that the Department is considering undertaking under this Act to the Procurement Policy Board and each county, municipality, and metropolitan planning organization, with respect to where Illiana is located within its boundaries.

(d) The Illiana project undertaken under this Act shall be subject to all applicable planning requirements otherwise required by law, including land use planning, regional planning, transportation planning, and environmental compliance requirements.

Section 20. Procurement process.

(a) The Department shall prepare monthly written updates on the status of the implementation of this Act and provide the written updates to the Procurement Policy Board. The Board may determine the format for the written updates. The Department shall also respond promptly in writing to all inquiries and comments of the Procurement Policy Board with respect to any conduct taken by the Department to implement, execute, or administer the provisions of this Act. Upon request, the Department shall also appear and testify before the Procurement Policy Board and produce any information requested by the Procurement Policy Board.

(b) The Department shall determine and set forth the criteria for the selection process for Illiana. The Department shall use: (i) a competitive sealed bidding process; (ii) a competitive sealed proposal process; (iii) a design-build procurement process in accordance with Section 25 of this Act; or (iv) any other selection process that the Department determines is in the best interests of the State and the public. In determining the selection process, the Department shall consider how the process would result in the selection of a proposal that offers the public the best value, the lowest price or cost, the highest payment to or revenue sharing with the Department, and the imposition of tolls for the shortest period of time. If the Department elects to utilize the selection process in item (iv) of this subsection, the Department shall set forth the process in writing along with the reasons for electing to use the selection process. The Department shall submit the written explanation detailing the selection process to the Procurement Policy Board for the Board's review and approval. The Procurement Policy Board shall have 30 days from the date of receipt of the Department's written explanation to conduct the review and, in the Board's discretion, approve the Department's elected selection process. The Department shall not proceed to implement a selection process under item (iv) of this subsection without the approval of the Procurement Policy Board.

The selection of professional design firms by the Department or private entity shall comply with the Architectural, Engineering, and Land Surveying Qualifications Based Selection Act or Section 25 of this Act.

All procurement processes shall incorporate requirements and set forth goals for participation by disadvantaged business enterprises as allowed under State and federal law.

(c) The Department may establish a process for prequalification of all potential private entities. If so, then the Department shall: (i) provide a public notice of the prequalification process for such period as deemed appropriate by the Department; (ii) set forth requirements and evaluation criteria in order to become prequalified; (iii) determine which private entities that have submitted prequalification applications, if any, meet the requirements and evaluation criteria; and (iv) allow only those entities that have been prequalified to submit proposals or bids. The Department shall make publicly available on its website during the request for qualifications period information regarding firms that are prequalified by the Department pursuant to Section 20 of the Architectural, Engineering, and Land Surveying Qualifications Based Selection Act to provide architectural, engineering, and land surveying services and shall require the use of such firms for such services.

(d) Competitive sealed bidding requirements:

(1) All contracts shall be awarded by competitive sealed bidding except as otherwise provided in this Section and Section 25 of this Act.

(2) An invitation for bids shall be issued and shall include a description of the public-private partnership with a private entity for the development, finance, and operation of Illiana, and the material contractual terms and conditions applicable to the procurement.

(3) Public notice of the invitation for bids shall be published in the State of Illinois Procurement Bulletin at least 21 days before the date set in the invitation for the opening of bids.

(4) Bids shall be opened publicly in the presence of one or more witnesses at the time and place designated in the invitation for bids. The name of each bidder, the amount of each bid, and other relevant information as may be specified by rule shall be recorded. After the award of the contract, the winning bid and the record of each unsuccessful bid shall be open to public inspection.

(5) Bids shall be unconditionally accepted without alteration or correction, except as authorized in this Act. Bids shall be evaluated based on the requirements set forth in the invitation for bids, which may include criteria to determine acceptability such as inspection, testing, quality, workmanship, delivery, and suitability for a particular purpose. Those criteria that will affect the bid price and be considered in evaluation for award, such as discounts, transportation costs, and total or life cycle costs, shall be objectively measurable. The invitation for bids shall set forth the evaluation criteria to be used.

(6) Correction or withdrawal of inadvertently erroneous bids before or after award, or cancellation of awards of contracts based on bid mistakes, shall be permitted in accordance with rules. After bid opening, no changes in bid prices or other provisions of bids prejudicial to the interest of the State or fair competition shall be permitted. All decisions to permit the correction or withdrawal of bids based on bid mistakes shall be supported by written determination made by the Department.

(7) The contract shall be awarded with reasonable promptness by written notice to the lowest responsible and responsive bidder whose bid meets the requirements and criteria set forth in the invitation for bids, except when the Department determines it is not in the best interest of the State and by written explanation determines another bidder shall receive the award. The explanation shall appear in the appropriate volume of the State of Illinois Procurement Bulletin. The written explanation must include:

(A) a description of the agency's needs;

(B) a determination that the anticipated cost will be fair and reasonable;

(C) a listing of all responsible and responsive bidders; and

(D) the name of the bidder selected, pricing, and the reasons for selecting that bidder.

(8) When it is considered impracticable to initially prepare a purchase description to support an award based on price, an invitation for bids may be issued requesting the submission of unpriced offers to be followed by an invitation for bids limited to those bidders whose offers have been qualified under the criteria set forth in the first solicitation.

(e) Competitive sealed proposal requirements:

(1) When the Department determines in writing that the use of competitive sealed bidding or design-build procurement is either not practicable or not advantageous to the State, a contract may be entered into by competitive sealed proposals.

(2) Proposals shall be solicited through a request for proposals.

(3) Public notice of the request for proposals shall be published in the State of Illinois Procurement Bulletin at least 21 days before the date set in the invitation for the opening of proposals.

(4) Proposals shall be opened publicly in the presence of one or more witnesses at the time and place designated in the request for proposals, but proposals shall be opened in a manner to avoid disclosure of contents to competing offerors during the process of negotiation. A record of proposals shall be prepared and shall be open for public inspection after contract award.

(5) The requests for proposals shall state the relative importance of price and other evaluation factors. Proposals shall be submitted in 2 parts: (i) covering items except price; and (ii) covering price. The first part of all proposals shall be evaluated and ranked independently of the second part of all proposals.

(6) As provided in the request for proposals and under any applicable rules, discussions may be conducted with responsible offerors who submit proposals determined to be reasonably susceptible of being selected for award for the purpose of clarifying and assuring full understanding of and responsiveness to the solicitation requirements. Those offerors shall be accorded fair and equal treatment with respect to any opportunity for discussion and revision of proposals. Revisions may be permitted after submission and before award for the purpose of obtaining best and final offers. In conducting discussions there shall be no disclosure of any information derived from proposals submitted by competing offerors. If information is disclosed to any offeror, it shall be provided to all competing offerors.

(7) Awards shall be made to the responsible offeror whose proposal is determined in writing to be the most advantageous to the State, taking into consideration price and the evaluation factors set forth in the request for proposals. The contract file shall contain the basis on which the award is made.

(f) Based on its review and evaluation of the proposal or proposals received in response to the request for proposals, the Department shall determine which one or more proposals, if any, best serve the public purpose of this Act and satisfy the criteria set forth in the request for proposals and may approve such proposal or proposals. The Department shall submit the proposal or proposals determined to best serve the public purpose of this Act and to satisfy the criteria set forth in the request for proposals to the Commission on Government Forecasting and Accountability and the Procurement Policy Board, which, within 30 days of the submission by the Department, shall complete a review of the proposal or proposals and, jointly or separately, report on, at a minimum, the value of the proposal or proposals to the State as measured against the purpose of this Act and criteria set forth in the request for proposals. The Department shall not approve a proposal until it has received and considered the findings of the Commission on Government Forecasting and Accountability and the Procurement Policy Board as set forth in their respective reports.

(g) Before awarding a public private partnership to an offeror, the Department shall schedule and hold a public hearing or hearings on the proposed public-private partnership agreement and publish notice of the hearing or hearings at least 7 days before the hearing and in accordance with Section 4-219 of the Illinois Highway Code. The notice must include the following:

(1) the date, time, and place of the hearing and the address of the Department;

(2) the subject matter of the hearing;

(3) a description of the agreement to be awarded; and

(4) the recommendation that has been made to award the agreement to an identified contractor.

At the hearing, the Department shall allow the public to be heard on the proposed public-private agreement.

(h) After the procedures required in this Section have been completed, the Department shall make a determination as to whether the successful contractor should be designated as Illiana approved proposal and shall submit the decision to the Governor and to the Governor's Office of Management and Budget. After review of the Department's determination, the Governor may accept or reject the determination. If the Governor accepts the determination of the Department, the Governor shall designate the successful approved proposal as the operator for Illiana.

(i) In addition to any other rights under this Act, in connection with any procurement under this Act, the following rights are reserved by the Department:

(1) to withdraw a request for qualifications or a request for proposals at any time, and to publish a new request for qualifications or request for proposals;

(2) to not approve a proposal for any reason;

(3) to not award the public-private agreement for any reason;

(4) to request clarifications to any statement of qualifications or proposal received, to seek one or more revised proposals or one or more best and final offers, or to conduct negotiations with one or more private entities that have submitted proposals;

(5) to modify, during the pendency of a procurement, the terms, provisions, and conditions of a request for qualifications or request for proposals or the technical specifications or form of the public-private agreement;

(6) to interview proposers; and

(7) any other rights available to the Department under applicable law and regulations.

(j) If the Department and the Governor designates an approved proposer for Illiana, the Department shall execute the public-private agreement, publish notice of the execution of the public-private agreement on its website and in a newspaper or newspapers of general circulation within the county or counties in which Illiana is to be located, and publish the entire agreement on its website.

(k) If the estimated construction cost is over $50,000,000, the Department must also require the approved proposer to pay the costs for an independent audit of any and all traffic and cost estimates associated with the approved proposal, as well as a review of all public costs and potential liabilities to which taxpayers could be exposed (including improvements to other transportation facilities that may be needed as a result of the approved proposal, failure by the approved proposer to reimburse the Department for services provided, and potential risk and liability in the event the approved proposer defaults on the public-private agreement or on bonds issued for the project). This independent audit must be conducted by an independent consultant selected by the Department.

(l) The Department may also apply for, execute, or endorse applications submitted by private entities to obtain federal credit assistance for the Illiana project under this Act.

Section 25. Design-build procurement.

(a) This Section 25 shall apply only if the Department intends to execute a design-build agreement, in which case the Department shall abide by the requirements and procedures of this Section 25 in addition to other applicable requirements and procedures set forth in this Act.

(b)(1) The Department must issue a notice of intent to receive proposals for the project at least 14 days before issuing the request for the qualifications. The Department must publish the advance notice in a daily newspaper of general circulation in the county where the Department is located. The Department is encouraged to use publication of the notice in related construction industry service publications. A brief description of the proposed procurement must be included in the notice. The Department must provide a copy of the request for qualifications to any party requesting a copy.

(2) The request for qualifications shall be prepared for Illiana and must contain, without limitation, the following information: (i) the name of the Department; (ii) a preliminary schedule for the completion of the contract; (iii) the proposed budget for Illiana, the source of funds, and the currently available funds at the time the request for proposal is submitted; (iv) prequalification criteria for design-build entities wishing to submit proposals (the Department shall include, at a minimum, its normal prequalification, licensing, registration, and other requirements, but nothing contained herein precludes the use of additional prequalification criteria by the Department); (v) material requirements of the contract, including but not limited to, the proposed terms and conditions, required performance and payment bonds, insurance, and the entity's plan to comply with the utilization goals established by the corporate authorities of the Department for minority and women business enterprises and to comply with Section 2-105 of the Illinois Human Rights Act; (vi) the performance criteria; (vii) the evaluation criteria for each phase of the solicitation; and (viii) the number of entities that will be considered for the request for proposals phase.

(3) The Department may include any other relevant information in the request for qualifications that it chooses to supply. The private entity shall be entitled to rely upon the accuracy of this documentation in the development of its statement of qualifications and its proposal.

(4) The date that statements of qualifications are due must be at least 21 calendar days after the date of the issuance of the request for qualifications. In the event the cost of the project is estimated to exceed $12,000,000, then the statement of qualifications due date must be at least 28 calendar days after the date of the issuance of the request for qualifications. The Department shall include in the request for proposals a minimum of 30 days to develop the proposals after the selection of entities from the evaluation of the statements of qualifications is completed.

(c)(1) The Department shall develop, with the assistance of a licensed design professional, the request for qualifications and the request for proposals, which shall include scope and performance criteria. The scope and performance criteria must be in sufficient detail and contain adequate information to reasonably apprise the private entities of the Department's overall programmatic needs and goals, including criteria and preliminary design plans, general budget parameters, schedule, and delivery requirements.

(2) Each request for qualifications and request for proposals shall also include a description of the level of design to be provided in the proposals. This description must include the scope and type of renderings, drawings, and specifications that, at a minimum, will be required by the Department to be produced by the private entities.

(3) The scope and performance criteria shall be prepared by a design professional who is an employee of the Department, or the Department may contract with an independent design professional selected under the Architectural, Engineering, and Land Surveying Qualifications Based Selection Act to provide these services.

(4) The design professional that prepares the scope and performance criteria is prohibited from participating in any private entity proposal for the project.

(d)(1) The Department must use a two phase procedure for the selection of the successful design-build entity. The request for qualifications phase will evaluate and shortlist the private entities based on qualifications, and the request for proposals will evaluate the technical and cost proposals.

(2) The Department shall include in the request for qualifications the evaluating factors to be used in the request for qualifications phase. These factors are in addition to any prequalification requirements of private entities that the Department has set forth. Each request for qualifications shall establish the relative importance assigned to each evaluation factor and subfactor, including any weighting of criteria to be employed by the Department. The Department must maintain a record of the evaluation scoring to be disclosed in event of a protest regarding the solicitation.

The Department shall include the following criteria in every request for qualifications phase evaluation of private entities: (i) experience of personnel; (ii) successful experience with similar project types; (iii) financial capability; (iv) timeliness of past performance; (v) experience with similarly sized projects; (vi) successful reference checks of the firm; (vii) commitment to assign personnel for the duration of the project and qualifications of the entity's consultants; and (viii) ability or past performance in meeting or exhausting good faith efforts to meet the utilization goals for business enterprises established in the Business Enterprise for Minorities, Females, and Persons with Disabilities Act and in complying with Section 2-105 of the Illinois Human Rights Act. No proposal shall be considered that does not include an entity's plan to comply with the requirements established in the minority and women business enterprises and economically disadvantaged firms established by the corporate authorities of the Department and with Section 2-105 of the Illinois Human Rights Act. The Department may include any additional relevant criteria in the request for qualifications phase that it deems necessary for a proper qualification review.

Upon completion of the qualifications evaluation, the Department shall create a shortlist of the most highly qualified private entities.

The Department shall notify the entities selected for the shortlist in writing. This notification shall commence the period for the preparation of the request for proposals phase technical and cost evaluations. The Department must allow sufficient time for the shortlist entities to prepare their proposals considering the scope and detail requested by the Department.

(3) The Department shall include in the request for proposals the evaluating factors to be used in the technical and cost submission components. Each request for proposals shall establish, for both the technical and cost submission components, the relative importance assigned to each evaluation factor and subfactor, including any weighting of criteria to be employed by the Department. The Department must maintain a record of the evaluation scoring to be disclosed in event of a protest regarding the solicitation.

The Department shall include the following criteria in every request for proposals phase technical evaluation of private entities: (i) compliance with objectives of the project; (ii) compliance of proposed services to the request for proposal requirements; (iii) quality of products or materials proposed; (iv) quality of design parameters; (v) design concepts; (vi) innovation in meeting the scope and performance criteria; and (vii) constructability of the proposed project. The Department may include any additional relevant technical evaluation factors it deems necessary for proper selection.

The Department shall include the following criteria in every request for proposals phase cost evaluation: the total project cost and the time of completion. The Department may include any additional relevant technical evaluation factors it deems necessary for proper selection. The guaranteed maximum project cost criteria weighing factor shall not exceed 30%.

The Department shall directly employ or retain a licensed design professional to evaluate the technical and cost submissions to determine if the technical submissions are in accordance with generally accepted industry standards.

(e) Statements of qualifications and proposals must be properly identified and sealed. Statements of qualifications and proposals may not be reviewed until after the deadline for submission has passed as set forth in the request for qualifications or the request for proposals. All private entities submitting statements of qualifications or proposals shall be disclosed after the deadline for submission, and all private entities who are selected for request for proposals phase evaluation shall also be disclosed at the time of that determination.

Phase II design-build proposals shall include a bid bond in the form and security as designated in the request for proposals. Proposals shall also contain a separate sealed envelope with the cost information within the overall proposal submission. Proposals shall include a list of all design professionals and other entities to which any work identified in Section 30-30 of the Illinois Procurement Code as a subdivision of construction work may be subcontracted during the performance of the contract.

Statements of qualifications and proposals must meet all material requirements of the request for qualifications or request for proposals, or else they may be rejected as non-responsive. The Department shall have the right to reject any and all statements of qualifications and proposals.

The drawings and specifications of any unsuccessful statement of qualifications or proposal shall remain the property of the private entity.

The Department shall review the statements of qualifications and the proposals for compliance with the performance criteria and evaluation factors.

Statements of qualifications and proposals may be withdrawn prior to the due date and time for submissions for any cause. After evaluation begins by the Department, clear and convincing evidence of error is required for withdrawal.

Section 30. Interim agreements.

(a) Prior to or in connection with the negotiation of the public-private agreement, the Department may enter into an interim agreement with the approved proposer. Neither the Department nor the approved proposer is authorized to commence or perform any construction-related activities pursuant to the interim agreement. Such interim agreement may:

(1) permit the approved proposer to commence activities relating to the proposed Illiana project as the Department and the approved proposer shall agree to and for which the approved proposer may be compensated, including, but not limited to, project planning, advance right-of-way acquisition, design and engineering, environmental analysis and mitigation, survey, conducting transportation and revenue studies, and ascertaining the availability of financing;

(2) establish the process and timing of the exclusive negotiation of the public-private agreement with an approved proposer;

(3) require that in the event the Department determines not to proceed with the project after the approved proposer and the Department have executed an interim agreement, and thereby terminates the interim agreement or declines to proceed with negotiation of the public-private agreement with an approved proposer, the Department shall pay to the approved proposer certain costs incurred by the approved proposer;

(4) establish the ownership in the State of Illinois of the concepts and designs in the event of termination of the interim agreement;

(5) establish procurement procedures for (i) the selection of professional design firms using procedures outlined in the Architectural, Engineering, and Land Surveying Qualifications Based Selection Act for the selection of design professional firms and (ii) the selection of construction companies using procedures outlined in the Illinois Procurement Code; and

(6) contain any other provisions related to any aspect of Illiana that the parties may deem appropriate.

(b) The Department may enter into an interim agreement with multiple approved proposers if the Department determines in writing that it is in the public interest to do so.

(c) The approved proposer shall select firms that are prequalified by the Department pursuant to Section 20 of the Architectural, Engineering, and Land Surveying Qualifications Based Selection Act to provide architectural, engineering, and land surveying services to undertake activities related to Illiana.

Section 35. Public-private agreement.

(a) Unless undertaking actions otherwise permitted in an interim agreement entered into under Section 30 of this Act, before developing, financing, or operating Illiana, the approved proposer shall enter into the public-private agreement with the Department. Subject to the requirements of this Act, the public-private agreement may provide that the approved proposer, acting on behalf of the Department, is partially or entirely responsible for any combination of developing, financing, or operating Illiana under terms set forth in the public-private agreement.

(b) The public-private agreement may, as determined appropriate by the Department for Illiana, provide for some or all of the following:

(1) Construction, financing, and operation of Illiana under terms set forth in the public-private agreement, in any form as deemed appropriate by the Department, including, but not limited to, a long-term concession and lease, a design-bid-build agreement, a design-build agreement, a design-build-maintain agreement, a design-build-operate-maintain agreement and a design-build-finance-operate-maintain agreement.

(2) Delivery of performance and payment bonds or other performance security determined suitable by the Department, including letters of credit, United States bonds and notes, parent guaranties, and cash collateral, in connection with the development, financing, or operation of Illiana, in the forms and amounts set forth in the public-private agreement or otherwise determined as satisfactory by the Department and payment bond beneficiaries who have a direct contractual relationship with the contractor or a subcontractor of the contractor to supply labor or material. The payment or performance bond or alternative form of performance security is not required for the portion of the public-private agreement that includes only design, planning, or financing services, the performance of preliminary studies, or the acquisition of real property.

(3) Review of plans for any development or operation, or both, by the Department.

(4) Inspection of any construction of or improvements to Illiana by the Department or another entity designated by the Department or under the public-private agreement to ensure that the construction or improvements conform to the standards set forth in the public-private agreement or are otherwise acceptable to the Department.

(5) Maintenance of:

(A) one or more policies of public liability insurance (copies of which shall be filed with the Department accompanied by proofs of coverage); or

(B) self-insurance; each in form and amount as set forth in the public-private agreement or otherwise satisfactory to the Department as reasonably sufficient to insure coverage of tort liability to the public and employees and to enable the continued operation of Illiana.

(6) Where operations are included within the contractor's obligations under the public-private agreement, monitoring of the maintenance practices of the contractor by the Department or another entity designated by the Department or under the public-private agreement and the taking of the actions the Department finds appropriate to ensure that Illiana is properly maintained.

(7) Reimbursement to be paid to the Department as set forth in the public-private agreement for services provided by the Department.

(8) Filing of appropriate financial statements and reports as set forth in the public-private agreement or as otherwise in a form acceptable to the Department on a periodic basis.

(9) Compensation or payments to the contractor. Compensation or payments may include any or a combination of the following:

(A) a base fee and additional fee for project savings as the design-builder of the construction project;

(B) a development fee, payable on a lump-sum basis, progress payment basis, time and materials basis, or another basis deemed appropriate by the Department;

(C) an operations fee, payable on a lump-sum basis, time and material basis, periodic basis, or another basis deemed appropriate by the Department;

(D) some or all of the revenues, if any, arising out of operation of Illiana;

(E) a maximum rate of return on investment or return on equity or a combination of the two;

(F) in-kind services, materials, property, equipment, or other items;

(G) compensation in the event of any termination;

(H) availability payments or similar arrangements whereby payments are made to the contractor pursuant to the terms set forth in the public-private agreement or related agreements; or

(I) other compensation set forth in the public-private agreement or otherwise deemed appropriate by the Department.

(10) Compensation or payments to the Department, if any. Compensation or payments may include any or a combination of the following:

(A) a concession or lease payment or other fee, which may be payable upfront or on a periodic basis or on another basis deemed appropriate by the Department;

(B) sharing of revenues, if any, from the operation of Illiana;

(C) sharing of project savings from the construction of Illiana;

(D) payment for any services, materials, equipment, personnel, or other items provided by the Department to the contractor under the public-private agreement; or

(E) other compensation set forth in the public-private agreement or otherwise deemed appropriate by the Department.

(11) The date and terms of termination of the contractor's authority and duties under the public-private agreement and the circumstances under which the contractor's authority and duties may be terminated prior to that date.

(12) Reversion of Illiana to the Department at the termination or expiration of the public-private agreement.

(13) Rights and remedies of the Department in the event that the contractor defaults or otherwise fails to comply with the terms of the public-private agreement.

(14) Establishing procurement procedures for (i) the selection of professional design firms using procedures outlined in the Architectural, Engineering, and Land Surveying Qualifications Based Selection Act for the selection of design professional firms and (ii) the selection of construction companies using procedures outlined in the Illinois Procurement Code.

(15) Other terms, conditions, and provisions that the Department believes are in the public interest.

(c) The Department may fix and revise the amounts of user fees that a contractor may charge and collect for the use of any part of Illiana in accordance with the public-private agreement. In fixing the amounts, the Department may establish maximum amounts for the user fees and may provide that the maximums and any increases or decreases of those maximums shall be based upon the indices, methodologies, or other factors the Department considers appropriate.

(d) the public-private agreement may:

(1) authorize the imposition of tolls in any manner determined appropriate by the Department for Illiana;

(2) authorize the contractor to adjust the user fees for the use of Illiana, so long as the amounts charged and collected by the contractor do not exceed the maximum amounts established by the Department under this Act;

(3) provide that any adjustment by the contractor permitted under paragraph (2) of this subsection (d) may be based on the indices, methodologies, or other factors described in the public-private agreement or approved by the Department;

(4) authorize the contractor to charge and collect user fees through methods, including, but not limited to, automatic vehicle identification systems, electronic toll collection systems, and, to the extent permitted by law, global positioning system-based, photo-based, or video-based toll collection enforcement, provided that to the maximum extent feasible the contractor will (i) utilize open road tolling methods that allow payment of tolls at highway speeds and (ii) comply with United States Department of Transportation requirements and best practices with respect to tolling methods; and

(5) authorize the collection of user fees by a third party.

(e) In the public-private agreement, the Department may agree to make grants or loans for the development or operation, or both, of Illiana from time to time from amounts received from the federal government or any agency or instrumentality of the federal government or from any State or local agency.

(f) Upon the termination or expiration of the public-private agreement, including a termination for default, the Department shall have the right to take over Illiana and to succeed to all of the right, title, and interest in Illiana, subject to any liens on revenues previously granted by the contractor to any person providing financing for Illiana.

(g) If the Department elects to take over Illiana as provided in subsection (f) of this Section, the Department may do the following:

(1) develop, finance, or operate the project, including through the public-private agreement entered into in accordance with this Act; or

(2) impose, collect, retain, and use user fees, if any, for the project.

(h) If the Department elects to take over Illiana as provided in subsection (f) of this Section, the Department may use the revenues, if any, for any lawful purpose, including to:

(1) make payments to individuals or entities in connection with any financing of Illiana;

(2) permit a contractor to receive some or all of the revenues under the public-private agreement entered into under this Act;

(3) pay development costs of Illiana;

(4) pay current operation costs of Illiana; and

(5) pay the contractor for any compensation or payment owing upon termination.

(i) All real property acquired as a part of Illiana shall be held in the name of the State of Illinois upon termination of Illiana.

(j) The full faith and credit of the State or any political subdivision of the State or the Department is not pledged to secure any financing of the contractor by the election to take over Illiana. Assumption of development or operation, or both, of Illiana does not obligate the State or any political subdivision of the State or the Department to pay any obligation of the contractor.

(k) The Department may enter into the public-private agreement with multiple approved proposers if the Department determines in writing that it is in the public interest to do so.

(l) The public-private agreement shall not include any provision under which the Department agrees to restrict or to provide compensation to the private entity for the construction or operation of a competing transportation facility during the term of the public-private agreement.

(m) With respect to a public-private agreement entered into by the Department, the Department shall certify in its State budget request to the Governor each year the amount required by the Department during the next State fiscal year to enable the Department to make any payment obligated to be made by the Department pursuant to that public-private agreement, and the Governor shall include that amount in the State budget submitted to the General Assembly.

Section 40. Development and operations standards for Illiana.

(a) The plans and specifications, if any, for Illiana developed under this Act must comply with:

(1) the Department's standards for other projects of a similar nature or as otherwise provided in the public-private agreement;

(2) the Professional Engineering Practice Act of 1989, the Structural Engineering Practice Act of 1989, the Illinois Architecture Practice Act of 1989, and the Illinois Professional Land Surveyor Act of 1989; and

(3) any other applicable State or federal standards.

(b) The Illiana Expressway constructed or operated under this Act is considered to be part of the State highway system for purposes of identification, maintenance standards, and enforcement of traffic laws under the jurisdiction of the Department.

(c) The Department may enter into agreements with the contractor for maintenance or other services under this Act.

(d) Any electronic toll collection system used on the toll highway as part of Illiana must be compatible with the electronic toll collection system used by the Illinois State Toll Highway Authority.

Section 45. Financial arrangements.

(a) The Department may do any combination of applying for, executing, or endorsing applications submitted by private entities to obtain federal, State, or local credit assistance developing, financing, or operating Illiana under this Act, including loans, lines of credit, and guarantees.

(b) The Department may take any action to obtain federal, State, or local assistance for Illiana that serves the public purpose of this Act and may enter into any contracts required to receive the federal assistance. The Department may determine that it serves the public purpose of this Act for all or any portion of the costs of Illiana to be paid, directly or indirectly, from the proceeds of a grant or loan, line of credit, or loan guarantee made by a local, State, or federal government or any agency or instrumentality of a local, State, or federal government. Such assistance may include, but not be limited to, federal credit assistance pursuant to the Transportation Infrastructure Finance and Innovation Act (TIFIA).

(c) The Department may agree to make grants or loans for the development, financing, or operation of Illiana from time to time, from amounts received from the federal, State, or local government or any agency or instrumentality of the federal, State, or local government.

(d) Any financing of Illiana may be in the amounts and upon the terms and conditions that are determined by the parties to the public-private agreement.

(e) For the purpose of financing Illiana, the contractor and the Department may do the following:

(1) propose to use any and all revenues that may be available to them;

(2) enter into grant agreements;

(3) access any other funds available to the Department; and

(4) accept grants from the Department or other public or private agency or entity.

(f) For the purpose of financing Illiana, public funds may be used and mixed and aggregated with funds provided by or on behalf of the contractor or other private entities.

(g) For the purpose of financing Illiana, the Department is authorized to do any combination of applying for, executing, or endorsing applications for an allocation of tax-exempt bond financing authorization provided by Section 142(m) of the United States Internal Revenue Code, as well as financing available under any other federal law or program.

(h) Any bonds, debt, or other securities or other financing issued for the purposes of this Act shall not be deemed to constitute a debt of the State or any political subdivision of the State or a pledge of the faith and credit of the State or any political subdivision of the State.

Section 50. Acquisition of property.

(a) The Department may exercise any power of condemnation or eminent domain, including quick-take powers, that it has under law, including, in the case of the Department, all powers for acquisition of property rights granted it in the Illinois Highway Code, for the purpose of acquiring any lands or estates or interests in land for Illiana to the extent provided in the public-private agreement or otherwise to the extent that the Department finds that the action serves the public purpose of this Act and deems it appropriate in the exercise of its powers under this Act.

(b) The Department and an approved proposer may enter into the leases, licenses, easements, and other grants of property interests that the Department determines necessary to carry out this Act.

Section 55. Labor.

(a) The public-private agreement related to Illiana shall require the contractor to enter into a project labor agreement.

(b) The public-private agreement related to Illiana shall require all construction contractors to comply with the requirements of Section 30-22 of the Illinois Procurement Code as they apply to responsible bidders and to present satisfactory evidence of that compliance to the Department, unless Illiana is federally funded and the application of those requirements would jeopardize the receipt or use of federal funds in support of Illiana.

(c) Each contractor and sub-contractor participating in a public-private agreement related to Illiana shall, with respect to employees assigned work related to Illiana and who are not otherwise members of an existing bargaining unit cognizable under the National Labor Relations Act of 1935, and where not otherwise prohibited by applicable law, the contractor 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 work related to Illiana and shall have no 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; and prohibition of coercion or intimidation of employees by either the employer or the union.

Section 60. Law enforcement.

(a) All law enforcement officers of the State and of each affected local jurisdiction have the same powers and jurisdiction within the limits of Illiana as they have in their respective areas of jurisdiction.

(b) Law enforcement officers shall have access to Illiana at any time for the purpose of exercising the law enforcement officers' powers and jurisdiction.

(c) The traffic and motor vehicle laws of the State of Illinois or, if applicable, any local jurisdiction shall be the same as those applying to conduct on similar projects in the State of Illinois or the local jurisdiction.

(d) Punishment for infractions and offenses shall be as prescribed by law for conduct occurring on similar projects in the State of Illinois or the local jurisdiction.

Section 65. Term of agreement; reversion of property to the Department.

(a) The term of the public-private agreement, including all extensions, may not exceed 99 years.

(b) The Department shall terminate the contractor's authority and duties under the public-private agreement on the date set forth in the public-private agreement.

(c) Upon termination of the public-private agreement, the authority and duties of the contractor under this Act cease, except for those duties and obligations that extend beyond the termination, as set forth in the public-private agreement, and all interests in Illiana shall revert to the Department.

Section 70. Additional powers of the Department with respect to Illiana.

(a) The Department may exercise any powers provided under this Act in participation or cooperation with any governmental entity and enter into any contracts to facilitate that participation or cooperation without compliance with any other statute. The Department shall cooperate with other governmental entities under this Act.

(b) The Department may make and enter into all contracts and agreements necessary or incidental to the performance of the Department's duties and the execution of the Department's powers under this Act. Except as otherwise required by law, these contracts or agreements are not subject to any approvals other than the approval of the Department, Governor, or federal agencies.

(c) The Department may pay the costs incurred under the public-private agreement entered into under this Act from any funds available to the Department for the purpose of Illiana under this Act or any other statute.

(d) The Department or other State agency may not take any action that would impair the public-private agreement entered into under this Act, except as provided by law.

(e) The Department may enter into an agreement between and among the contractor, the Department, and the Department of State Police concerning the provision of law enforcement assistance with respect to Illiana under this Act.

(f) The Department is authorized to enter into arrangements with the Department of State Police related to costs incurred in providing law enforcement assistance under this Act.

Section 75. Prohibited local action. A unit of local government may not take any action that would have the effect of impairing the public-private agreement under this Act.

Section 80. Powers liberally construed. The powers conferred by this Act shall be liberally construed in order to accomplish their purposes and shall be in addition and supplemental to the powers conferred by any other law. If any other law or rule is inconsistent with this Act, this Act is controlling as to any public-private agreement entered into under this Act.

Section 85. Full and complete authority. This Act contains full and complete authority for agreements and leases with private entities to carry out the activities described in this Act. Except as otherwise required by law, no procedure, proceedings, publications, notices, consents, approvals, orders, or acts by the Department or any other State or local agency or official are required to enter into an agreement or lease.

Section 90. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.

Section 905. The Department of Transportation Law of the Civil Administrative Code of Illinois is amended by adding Section 2705-220 as follows:

(20 ILCS 2705/2705-220 new)

Sec. 2705-220. Public-private partnerships for transportation. The Department may exercise all powers granted to it under the Illiana Expressway Public-Private Partnerships for Transportation Act.

Section 910. The Illinois Finance Authority Act is amended by adding Section 825-105 as follows:

(20 ILCS 3501/825-105 new)

Sec. 825-105. Illiana financing. For the purpose of financing Illiana under the Illiana Expressway Public-Private Partnerships for Transportation Act, the Authority is authorized to apply for an allocation of tax-exempt bond financing authorization provided by Section 142(m) of the United States Internal Revenue Code, as well as financing available under any other federal law or program.

Section 915. The Illinois Procurement Code is amended by changing Section 1-10 as follows:

(30 ILCS 500/1-10)

Sec. 1-10. Application.

(a) This Code applies only to procurements for which contractors were first solicited on or after July 1, 1998. This Code shall not be construed to affect or impair any contract, or any provision of a contract, entered into based on a solicitation prior to the implementation date of this Code as described in Article 99, including but not limited to any covenant entered into with respect to any revenue bonds or similar instruments. All procurements for which contracts are solicited between the effective date of Articles 50 and 99 and July 1, 1998 shall be substantially in accordance with this Code and its intent.

(b) This Code shall apply regardless of the source of the funds with which the contracts are paid, including federal assistance moneys. This Code shall not apply to:

(1) Contracts between the State and its political subdivisions or other governments, or between State governmental bodies except as specifically provided in this Code.

(2) Grants, except for the filing requirements of Section 20-80.

(3) Purchase of care.

(4) Hiring of an individual as employee and not as an independent contractor, whether pursuant to an employment code or policy or by contract directly with that individual.

(5) Collective bargaining contracts.

(6) Purchase of real estate, except that notice of this type of contract with a value of more than $25,000 must be published in the Procurement Bulletin within 7 days after the deed is recorded in the county of jurisdiction. The notice shall identify the real estate purchased, the names of all parties to the contract, the value of the contract, and the effective date of the contract.

(7) Contracts necessary to prepare for anticipated litigation, enforcement actions, or investigations, provided that the chief legal counsel to the Governor shall give his or her prior approval when the procuring agency is one subject to the jurisdiction of the Governor, and provided that the chief legal counsel of any other procuring entity subject to this Code shall give his or her prior approval when the procuring entity is not one subject to the jurisdiction of the Governor.

(8) Contracts for services to Northern Illinois University by a person, acting as an independent contractor, who is qualified by education, experience, and technical ability and is selected by negotiation for the purpose of providing non-credit educational service activities or products by means of specialized programs offered by the university.

(9) Procurement expenditures by the Illinois Conservation Foundation when only private funds are used.

(10) Except for Section 20-160 and Article 50 of this Code, and as expressly set forth in the Illiana Expressway Public-Private Partnerships for Transportation Act, the provisions of this Code do not apply to the procurement process provided for under the Illiana Expressway Public-Private Partnerships for Transportation Act.

(c) This Code does not apply to the electric power procurement process provided for under Section 1-75 of the Illinois Power Agency Act and Section 16-111.5 of the Public Utilities Act.

(d) Except for Section 20-160 and Article 50 of this Code, and as expressly required by Section 9.1 of the Illinois Lottery Law, the provisions of this Code do not apply to the procurement process provided for under Section 9.1 of the Illinois Lottery Law.

(Source: P.A. 95-481, eff. 8-28-07; 95-615, eff. 9-11-07; 95-876, eff. 8-21-08; 96-840, eff. 12-23-09.)

Section 920. The Public Construction Bond Act is amended by adding Section 1.5 as follows:

(30 ILCS 550/1.5 new)

Sec. 1.5. Public-private agreements. This Act applies to any public-private agreement entered into under the Illiana Expressway Public-Private Partnerships for Transportation Act.

Section 925. The Employment of Illinois Workers on Public Works Act is amended by adding Section 2.5 as follows:

(30 ILCS 570/2.5 new)

Sec. 2.5. Public-private agreements. This Act applies to any public-private agreement entered into under the Illiana Expressway Public-Private Partnerships for Transportation Act.

Section 930. The Business Enterprise for Minorities, Females, and Persons with Disabilities Act is amended by adding Section 2.5 as follows:

(30 ILCS 575/2.5 new)

Sec. 2.5. Public-private agreements. This Act applies to any public-private agreement entered into under the Illiana Expressway Public-Private Partnerships for Transportation Act.

Section 935. The Retailers' Occupation Tax Act is amended by adding Section 1q as follows:

(35 ILCS 120/1q new)

Sec. 1q. Building materials exemption; Illiana public-private partnership.

(a) Each retailer that makes a qualified sale of building materials to be incorporated into "Illiana" as defined in the Illiana Expressway Public-Private Partnerships for Transportation Act, by remodeling, rehabilitating, or new construction, may deduct receipts from those sales when calculating the tax imposed by this Act.

(b) As used in this Section, "qualified sale" means a sale of building materials that will be incorporated into Illiana for which a Certificate of Eligibility for Sales Tax Exemption has been issued by the Illinois Department of Transportation, which has authority over the project.

(c) To document the exemption allowed under this Section, the retailer must obtain from the purchaser a copy of the Certificate of Eligibility for Sales Tax Exemption issued by the Illinois Department of Transportation, which has jurisdiction over the project into which the building materials will be incorporated is located. The Certificate of Eligibility for Sales Tax Exemption must contain all of the following:

(1) statement that the project identified in the Certificate meets all the requirements of the Illinois Department of Transportation;

(2) the location or address of the project; and

(3) the signature of the Secretary of the Illinois Department of Transportation, which has authority over Illiana or the Secretary's delegate.

(d) In addition to meeting the requirements of subsection (c) of this Act, the retailer must obtain a certificate from the purchaser that contains all of the following:

(1) a statement that the building materials are being purchased for incorporation into Illiana in accordance with the Illiana Expressway Public-Private Partnerships for Transportation Act;

(2) the location or address of the project into which the building materials will be incorporated;

(3) the name of the project;

(4) a description of the building materials being purchased; and

(5) the purchaser's signature and date of purchase.

(e) This Section is exempt from Section 2-70 of this Act.

Section 940. The Property Tax Code is amended by changing Section 15-55 as follows:

(35 ILCS 200/15-55)

Sec. 15-55. State property.

(a) All property belonging to the State of Illinois is exempt. However, the State agency holding title shall file the certificate of ownership and use required by Section 15-10, together with a copy of any written lease or agreement, in effect on March 30 of the assessment year, concerning parcels of 1 acre or more, or an explanation of the terms of any oral agreement under which the property is leased, subleased or rented.

The leased property shall be assessed to the lessee and the taxes thereon extended and billed to the lessee, and collected in the same manner as for property which is not exempt. The lessee shall be liable for the taxes and no lien shall attach to the property of the State.

For the purposes of this Section, the word "leases" includes licenses, franchises, operating agreements and other arrangements under which private individuals, associations or corporations are granted the right to use property of the Illinois State Toll Highway Authority and includes all property of the Authority used by others without regard to the size of the leased parcel.

(b) However, all property of every kind belonging to the State of Illinois, which is or may hereafter be leased to the Illinois Prairie Path Corporation, shall be exempt from all assessments, taxation or collection, despite the making of any such lease, if it is used for:

(1) conservation, nature trail or any other charitable, scientific, educational or recreational purposes with public benefit, including the preserving and aiding in the preservation of natural areas, objects, flora, fauna or biotic communities;

(2) the establishment of footpaths, trails and other protected areas;

(3) the conservation of the proper use of natural resources or the promotion of the study of plant and animal communities and of other phases of ecology, natural history and conservation;

(4) the promotion of education in the fields of nature, preservation and conservation; or

(5) similar public recreational activities conducted by the Illinois Prairie Path Corporation.

No lien shall attach to the property of the State. No tax liability shall become the obligation of or be enforceable against Illinois Prairie Path Corporation.

(c) If the State sells the James R. Thompson Center or the Elgin Mental Health Center and surrounding land located at 750 S. State Street, Elgin, Illinois, as provided in subdivision (a)(2) of Section 7.4 of the State Property Control Act, to another entity whose property is not exempt and immediately thereafter enters into a leaseback or other agreement that directly or indirectly gives the State a right to use, control, and possess the property, that portion of the property leased and occupied exclusively by the State shall remain exempt under this Section. For the property to remain exempt under this subsection (c), the State must retain an option to purchase the property at a future date or, within the limitations period for reverters, the property must revert back to the State.

If the property has been conveyed as described in this subsection (c), the property is no longer exempt pursuant to this Section as of the date when:

(1) the right of the State to use, control, and possess the property has been terminated; or

(2) the State no longer has an option to purchase or otherwise acquire the property and there is no provision for a reverter of the property to the State within the limitations period for reverters.

Pursuant to Sections 15-15 and 15-20 of this Code, the State shall notify the chief county assessment officer of any transaction under this subsection (c). The chief county assessment officer shall determine initial and continuing compliance with the requirements of this Section for tax exemption. Failure to notify the chief county assessment officer of a transaction under this subsection (c) or to otherwise comply with the requirements of Sections 15-15 and 15-20 of this Code shall, in the discretion of the chief county assessment officer, constitute cause to terminate the exemption, notwithstanding any other provision of this Code.

(c-1) If the Illinois State Toll Highway Authority sells the Illinois State Toll Highway Authority headquarters building and surrounding land, located at 2700 Ogden Avenue, Downers Grove, Illinois as provided in subdivision (a)(2) of Section 7.5 of the State Property Control Act, to another entity whose property is not exempt and immediately thereafter enters into a leaseback or other agreement that directly or indirectly gives the State or the Illinois State Toll Highway Authority a right to use, control, and possess the property, that portion of the property leased and occupied exclusively by the State or the Authority shall remain exempt under this Section. For the property to remain exempt under this subsection (c), the Authority must retain an option to purchase the property at a future date or, within the limitations period for reverters, the property must revert back to the Authority.

If the property has been conveyed as described in this subsection (c), the property is no longer exempt pursuant to this Section as of the date when:

(1) the right of the State or the Authority to use, control, and possess the property has been terminated; or

(2) the Authority no longer has an option to purchase or otherwise acquire the property and there is no provision for a reverter of the property to the Authority within the limitations period for reverters.

Pursuant to Sections 15-15 and 15-20 of this Code, the Authority shall notify the chief county assessment officer of any transaction under this subsection (c). The chief county assessment officer shall determine initial and continuing compliance with the requirements of this Section for tax exemption. Failure to notify the chief county assessment officer of a transaction under this subsection (c) or to otherwise comply with the requirements of Sections 15-15 and 15-20 of this Code shall, in the discretion of the chief county assessment officer, constitute cause to terminate the exemption, notwithstanding any other provision of this Code.

(d) The fair market rent of each parcel of real property in Will County owned by the State of Illinois for the purpose of developing an airport by the Department of Transportation shall include the assessed value of leasehold tax. The lessee of each parcel of real property in Will County owned by the State of Illinois for the purpose of developing an airport by the Department of Transportation shall not be liable for the taxes thereon. In order for the State to compensate taxing districts for the leasehold tax under this paragraph the Will County Supervisor of Assessments shall certify, in writing, to the Department of Transportation, the amount of leasehold taxes extended for the 2002 property tax year for each such exempt parcel. The Department of Transportation shall pay to the Will County Treasurer, from the Tax Recovery Fund, on or before July 1 of each year, the amount of leasehold taxes for each such exempt parcel as certified by the Will County Supervisor of Assessments. The tax compensation shall terminate on December 31, 2020. It is the duty of the Department of Transportation to file with the Office of the Will County Supervisor of Assessments an affidavit stating the termination date for rental of each such parcel due to airport construction. The affidavit shall include the property identification number for each such parcel. In no instance shall tax compensation for property owned by the State be deemed delinquent or bear interest. In no instance shall a lien attach to the property of the State. In no instance shall the State be required to pay leasehold tax compensation in excess of the Tax Recovery Fund's balance.

(e) Public Act 81-1026 applies to all leases or agreements entered into or renewed on or after September 24, 1979.

(f) Notwithstanding anything to the contrary in this Section, all property owned by the State that is defined as part of Illiana under the Illiana Expressway Public-Private Partnerships for Transportation Act and that is used for transportation purposes and that is leased for those purposes to another entity whose property is not exempt shall remain exempt, and any leasehold interest in the property shall not be subject to taxation under Section 9-195 of this Act.

(Source: P.A. 95-331, eff. 8-21-07; 96-192, eff. 8-10-09.)

Section 945. The Prevailing Wage Act is amended by changing Section 2 as follows:

(820 ILCS 130/2) (from Ch. 48, par. 39s-2)

Sec. 2. This Act applies to the wages of laborers, mechanics and other workers employed in any public works, as hereinafter defined, by any public body and to anyone under contracts for public works. This includes any maintenance, repair, assembly, or disassembly work performed on equipment whether owned, leased, or rented.

As used in this Act, unless the context indicates otherwise:

"Public works" means all fixed works constructed or demolished by any public body, or paid for wholly or in part out of public funds. "Public works" as defined herein includes all projects financed in whole or in part with bonds, grants, loans, or other funds made available by or through the State or any of its political subdivisions, including but not limited to: bonds issued under the Industrial Project Revenue Bond Act (Article 11, Division 74 of the Illinois Municipal Code), the Industrial Building Revenue Bond Act, the Illinois Finance Authority Act, the Illinois Sports Facilities Authority Act, or the Build Illinois Bond Act; loans or other funds made available pursuant to the Build Illinois Act; or funds from the Fund for Illinois' Future under Section 6z-47 of the State Finance Act, funds for school construction under Section 5 of the General Obligation Bond Act, funds authorized under Section 3 of the School Construction Bond Act, funds for school infrastructure under Section 6z-45 of the State Finance Act, and funds for transportation purposes under Section 4 of the General Obligation Bond Act. "Public works" also includes (i) all projects financed in whole or in part with funds from the Department of Commerce and Economic Opportunity under the Illinois Renewable Fuels Development Program Act for which there is no project labor agreement and (ii) all projects undertaken under the public-private agreement under the Illiana Expressway Public-Private Partnerships for Transportation Act for the Illiana Expressway. "Public works" also includes all projects at leased facility property used for airport purposes under Section 35 of the Local Government Facility Lease Act. "Public works" also includes the construction of a new wind power facility by a business designated as a High Impact Business under Section 5.5(a)(3)(E) of the Illinois Enterprise Zone Act. "Public works" does not include work done directly by any public utility company, whether or not done under public supervision or direction, or paid for wholly or in part out of public funds. "Public works" does not include projects undertaken by the owner at an owner-occupied single-family residence or at an owner-occupied unit of a multi-family residence.

"Construction" means all work on public works involving laborers, workers or mechanics. This includes any maintenance, repair, assembly, or disassembly work performed on equipment whether owned, leased, or rented.

"Locality" means the county where the physical work upon public works is performed, except (1) that if there is not available in the county a sufficient number of competent skilled laborers, workers and mechanics to construct the public works efficiently and properly, "locality" includes any other county nearest the one in which the work or construction is to be performed and from which such persons may be obtained in sufficient numbers to perform the work and (2) that, with respect to contracts for highway work with the Department of Transportation of this State, "locality" may at the discretion of the Secretary of the Department of Transportation be construed to include two or more adjacent counties from which workers may be accessible for work on such construction.

"Public body" means the State or any officer, board or commission of the State or any political subdivision or department thereof, or any institution supported in whole or in part by public funds, and includes every county, city, town, village, township, school district, irrigation, utility, reclamation improvement or other district and every other political subdivision, district or municipality of the state whether such political subdivision, municipality or district operates under a special charter or not.

The terms "general prevailing rate of hourly wages", "general prevailing rate of wages" or "prevailing rate of wages" when used in this Act mean the hourly cash wages plus fringe benefits for training and apprenticeship programs approved by the U.S. Department of Labor, Bureau of Apprenticeship and Training, health and welfare, insurance, vacations and pensions paid generally, in the locality in which the work is being performed, to employees engaged in work of a similar character on public works.

(Source: P.A. 95-341, eff. 8-21-07; 96-28, eff. 7-1-09; 96-58, eff. 1-1-10; 96-186, eff. 1-1-10; revised 8-20-09.)

Section 999. Effective date. This Act takes effect upon becoming law.".