Public Act 102-1065
 
HB4600 EnrolledLRB102 23985 SPS 33190 b


  
    AN ACT concerning employment.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  




 
    Section 5. If and only if House Bill 5412 of the 102nd 
General Assembly becomes law, then the Department of 
Transportation Law of the
Civil Administrative Code of 
Illinois is amended by adding Section 2705-620 as follows:
 
    (20 ILCS 2705/2705-620 new)
    Sec. 2705-620. Bond Reform in the Construction Industry 
Task Force.
    (a)   There is created the Bond Reform in the Construction 
Industry Task Force consisting of the following members:
        (1) the Governor, or his or her designee;
        (2)  the State Treasurer, or his or her designee;
        (3)   the Director of Insurance, or his or her designee;
        (4)   2 members appointed by the Speaker of the House of 
    Representatives;
        (5)   2 members appointed by the Minority Leader of the 
    House of Representatives;
        (6)   2 members appointed by the President of the 
    Senate;
        (7)   2 members appointed by the Minority Leader of the 
    Senate; and
        (8)   7 members representing the construction industry 
    appointed by the Governor.
    The Department of Transportation shall provide 
administrative support to the Task Force. 
    (b)   The Task Force shall study innovative ways to reduce 
the cost of insurance in the private and public construction 
industry while protecting owners from risk of nonperformance. 
The Task Force shall consider options that include, but are 
not limited to, owner-financed insurance instead of 
contractor-financed insurance and alternative ways to manage 
risk other than bonds or other insurance products.
    (c)   The Task Force shall report its findings and 
recommendations to the General Assembly no later than March 1, 
2023.
    (d)   This Section is repealed December 31, 2023. 
 
    Section 10. If and only if House Bill 5412 of the 102nd 
General Assembly becomes law, then the Illinois Wage Payment 
and Collection Act is amended  by changing Section 13.5 as 
follows:
 
    (820 ILCS 115/13.5)
    Sec. 13.5. Primary contractor responsibility for wage

claims in construction industry.
    (a)     For all contracts entered into on or after July 1,

2022, a primary contractor making or taking a contract in the

State for the erection, construction, alteration, or repair of

a building, structure, or other private work in the State 
where the aggregate costs of the project exceed $20,000 ,

shall assume, and is liable for, any debt owed to a
claimant 
under this Section or to a third party on a wage claimant's 
behalf incurred pursuant to this Act by a subcontractor at
any 
tier acting under, by, or for the primary contractor for
the 
wage claimant's performance of labor included in the











subject 
of the contract between the primary contractor and the
owner. 
This Section does not apply to work performed by a
contractor 
of the federal government, the State, a special district, a 
city, a county,
or any political subdivision of the State.
    (b)   As used in this Section:
    "Construction" means building, altering, repairing, 
improving, or demolishing any structure or building or making 
improvements of any kind to real property.
    "Primary contractor" means a contractor that has a direct

contractual relationship with a property owner. "Primary

contractor" may have the same meaning as a "general

contractor", "prime contractor", or "construction manager". A 
property owner
who acts as a primary contractor related to the 
erection,
construction, alteration, or repair of his or her 
primary
residence
shall be exempt from liability under this

Section.
    "Private work" means any erection, construction,

alteration, or repair of a building, structure, or other work.
    "Subcontractor" means a contractor that has a contractual

relationship with the primary contractor or with another

subcontractor at any tier, who furnishes any goods or services

in connection with the contract between the primary contractor

and the property owner, but does not include contractors who

solely provide goods and transport of such goods related to

the contract.
    (c)   The primary contractor's liability under this Section

shall extend only to any unpaid wages or fringe or other 
benefit payments or contributions, including interest owed, 
penalties assessed by the Department,


and reasonable 
attorney's fees, but shall not extend to
liquidated damages.
    (d)   A primary contractor or any other person shall not

evade or commit any act that negates the requirements of this

Section. Except as otherwise provided in a contract between

the primary contractor and the subcontractor, the

subcontractor shall indemnify the primary contractor for any

wages, fringe or other benefit payments or contributions, 
damages, interest, penalties, or attorney's fees owed
as a 
result of the subcontractor's failure to pay wages or fringe 
or other benefit payments or contributions
 as provided in this 
Section, unless
the subcontractor's failure to pay was due to 
the
primary contractor's failure to pay moneys due to the

subcontractor in accordance with the terms of their

contractual relationship.
    (e)   Nothing in this Section shall supersede or modify the 
obligations and liability that any primary contractor, 
subcontractor, or property owner may bear as an employer under 
this Act or any other applicable law. The obligations and 
remedies provided in this Section shall be in addition to any 
obligations and remedies otherwise provided by law. Nothing in 
this Section shall be construed to impose liability on a 
primary contractor for anything other than unpaid wages, 
fringe or other benefit payments or contributions, penalties 
assessed by the Department, interest owed, and reasonable 
attorney's fees.
    (f)   Claims brought pursuant to this Section shall be done

so in accordance with Section 11 and 11.5 of this Act. Nothing 
in this Section shall be construed to provide a third party 
with the right to file a complaint with the Department 
alleging violation of this Section.
    (g) The following shall be exempt from liability under 
this Section:
        (1) primary contractors who are parties to a 
    collective bargaining agreement on the project where the 
    work is being performed; and
        (2) primary contractors making or taking a contract in 
    the State for the alteration or repair of an existing 
    single-family dwelling or to a single residential unit in 
    an existing multi-unit structure. Primary contractors who 
    are parties to a collective bargaining agreement on the 
    project where the work is being performed shall be exempt 
    from this Section. 
    (h)   Prior to the commencement of any civil action, a 
claimant or a representative of a claimant shall provide 
written notice to the employer and to the primary contractor 
detailing the nature and basis for the claim. Failure of the 
employer or the primary contractor to resolve the claim within 
10 days after receipt of this notice, or during any agreed upon 
period extending this deadline, may result in the filing of a 
civil action to enforce the provisions of this Act.
    (i) Claims brought pursuant to this Section shall be filed 
with the Department of Labor or filed with the circuit court 
within 3 years after the wages, final compensation, or wage 
supplements were due. This subsection does not apply to any 
other claims under this Act or any other applicable law 
against a primary contractor, subcontractor, or homeowner as 
an employer. 

(Source: 10200HB5412eng.)
 

    Section 99. Effective date. This Act takes effect upon 
becoming law or on the date House Bill 5412 of the 102nd 
General Assembly takes effect, whichever is later.