HB0476eng 94TH GENERAL ASSEMBLY

HB0476 Engrossed LRB094 07471 RCE 37634 b

AN ACT concerning ethics.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

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 subject to 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. The administrator, as defined in this Section, 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 to which this Section applies, 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 except as provided in this Section. Naming and sponsorship rights are subject to all other applicable statutes that are not inconsistent with the provisions of this Section; to the extent of any conflict, however, this Section controls.

(b) Certain properties and other assets; no license. Naming rights and sponsorship rights may not be licensed with respect to (i) any of the following or (ii) any property or other asset associated with 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) the Illinois State Museum in Springfield, Illinois;

(13) 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

(14) 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 (i) may have a term of no more than 10 years and shall include a termination option in favor of the State after 5 years, (ii) is non-transferable, and (iii) 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 authorized 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. Except with respect to property or other assets of a public institution of higher education, no naming or sponsorship right, however, may be characterized or treated as "official" or in a similar fashion. 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. Fees shall be deposited into the General Revenue Fund, except that, if a fund or account has been designated in a license granted by an administrator designated by the Attorney General, the Secretary of State, the Comptroller, the Treasurer, or a public institution of higher education, then 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 proposal that yields 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 any one or more 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 proposal that yields the most advantageous benefits and considerations to the State. The administrator may give notice of and negotiate multiple licenses for identical naming or sponsorship rights as part of a single notice, negotiation, and licensing process. In the case of naming or sponsorship rights for a single event or a continuous series of related events, the administrator may grant multiple licenses not based on the standard of "highest and best" proposals if the end result is the most beneficial 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) Personal gifts. If one or more natural persons, as such, make a gift, bequest, or devise to a State officer or entity to which this Section applies and that does not result in any pecuniary benefit (other than a tax benefit) to the person or persons, then, at the request of the administrator and with the approval of the Executive Ethics Commission in the same manner as provided in subsection (f), the administrator may grant naming rights, sponsorship rights, or both, so long as the rights are of no pecuniary benefit to the person or persons, subject only to the limitations in subsection (c) on identifying information and characterization as "official" or in a similar fashion. The sole purpose of the gift, bequest, or devise must be to assist the recipient in fulfilling the recipient's core mission or purpose.

(f) Approval by Executive Ethics Commission. Upon determining to grant a license, the administrator must, within 15 calendar days, deliver a written notice setting forth all of the pertinent facts relating to the proposal, proposer, and proposed license 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 within 15 calendar days, 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's approval shall not be unreasonably withheld.

Within 40 calendar days after its actual receipt from the administrator of notice of a proposed license or amendment to a license, the Commission shall either approve or disapprove the proposed license or amendment and shall notify the administrator and other parties to the proposed license or amendment of its decision. The Commission may, in its discretion and before the running of the time period in which it must make a decision, grant itself one extension of up to an additional 40 calendar days in which to make a decision by notifying the administrator and other parties to the proposed license or amendment. If the Commission requests additional or supplemental information from the administrator or a party to the proposed license or amendment, the running of the time limit in which the Commission must make its decision is suspended, and the 40-day period begins anew when the information is delivered to the Commission. If the Commission fails to render a decision within the applicable time period, the proposed license or amendment is deemed approved.

(g) Rules. Each administrator and the Executive Ethics Commission may, 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 except as provided in this subsection. The Executive Ethics Commission may adopt rules authorizing the administrator to grant licenses without pre-approval under subsection (f), but the rules must specify, by category, those emergency and other extenuating situations in which pre-approval is waived, must provide for prompt review by the Commission after the granting of the license, and may contain other provisions the Commission deems necessary to prevent abuse of this procedure.

(h) 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.

(i) Small consideration. If the value of the consideration for an individual naming or sponsorship right does not exceed $25,000, the administrator may grant the right, subject only to the limitations in subsection (c) on identifying information and characterization as "official" or in a similar fashion, but the administrator must deliver a written notice giving the details to the Executive Ethics Commission at least one full business day before the administrator agrees to grant the right. Naming or sponsorship rights shall not be artificially divided in an attempt to qualify under this subsection.

(j) Applicability. This Section does not apply to naming rights and sponsorship rights with respect to property or other assets under the jurisdiction and control of the legislative branch or the judicial branch of the State. This Section applies to all naming rights and sponsorship rights granted with respect to the State Fair, as defined in Section 2 of the State Fair Act, on or after January 1, 2006. This Section applies to all other naming rights and sponsorship rights granted on or after the effective date of this amendatory Act of the 94th General Assembly.

(k) Retention of records. The administrator must maintain all records relating to (i) each license of naming rights or sponsorship rights for at least 7 years after the expiration of the term of the license and (ii) each proposal for naming rights or sponsorship rights that does not result in a license being granted to the proposer for at least 7 years after the proposal was submitted.

(l) Definitions. In this Section:

Notwithstanding Section 1.03 of this Act, in this Section "administrator" means (i) an officer or employee designated by the Attorney General with respect to the property and other assets under the jurisdiction and control of the Attorney General; (ii) an officer or employee designated by the Secretary of State with respect to the property and other assets under the jurisdiction and control of the Secretary of State; (iii) an officer or employee designated by the Comptroller with respect to the property and other assets under the jurisdiction and control of the Comptroller; (iv) an officer or employee designated by the Treasurer with respect to the property and other assets under the jurisdiction and control of the Treasurer; (v) an officer or employee designated by the board of trustees of a public institution of higher education, as defined in Section 1 of the Board of Higher Education Act, with respect to the property and other assets under the jurisdiction and control of that public institution of higher education; and (vi) the Director of Central Management Services with respect to all other property and other assets to which this Section applies.

"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.

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

(n) 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 upon becoming law.