HB2961eng 104TH GENERAL ASSEMBLY

HB2961 Engrossed LRB104 09927 SPS 19997 b

AN ACT concerning employment.

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

Section 1. Short title. This Act may be cited as the Best Interest of the State Act.

Section 5. Findings and Purpose.

(a) The purpose of this Act is to:

(1) ensure that construction projects in Illinois require project labor agreements that provide access to minorities, women, veterans, and persons with disabilities; and

(2) improve access to apprenticeships and construction employment for workers in rural areas and workers from groups traditionally underrepresented in the construction industry, including minorities, women, veterans, and persons with disabilities.

(b) The General Assembly finds and declares the following:

(1) Construction workers are highly skilled professionals and should be afforded all the benefits of a high-quality job, including competitive pay, job security, advancement opportunities, and fully funded benefits, including healthcare benefits, work-family benefits, and retirement benefits.

(2) It is in the best interest of this State's construction workforce to ensure that workers have equal access to apprenticeships in the construction industry, regardless of where they live, and to ensure that employers subject to project labor agreements are making efforts in good faith to use local workers on construction projects.

(3) It is in the best interest of this State's construction workforce, including current and future apprentices, for workers employed on public works projects to reflect the demographic makeup of the community in which the project is taking place.

(4) It is in the best interest of this State and all of the residents of this State for the General Assembly to adopt policies that provide opportunity for all workers, regardless of race, geographic location, creed, or gender to participate in the construction workforce.

Section 10. Definitions. As used in this Act:

"Collective bargaining unit" means a labor organization that provides workers to a construction project.

"Commission" means the Commission on Equity and Inclusion.

"Demographic makeup" means the determination of the demographic makeup of a county made by the Commission as set forth in Section 25.

"Individuals with barriers to employment" means a person who (i) has been released from incarceration by the Department of Corrections or a county or local law enforcement authority; (ii) does not have a high school diploma or equivalent; (iii) demonstrates few marketable abilities or skills for employment; or (iv) has no prior job-seeking skills.

"Labor organization" has the meaning set forth in 29 U.S.C. 152.

"Project labor agreement" means an agreement that meets the content requirements set forth in Section 25 of the Project Labor Agreements Act. "Project labor agreement" also includes any construction project that requires the use of a project labor agreement under State law.

Section 15. Project labor agreement requirements. Any collective bargaining unit, contractor, or subcontractor participating in a project labor agreement shall satisfy the following requirements to promote parity statewide in consideration of racial and demographic makeup, and adherence to training and safety standards:

(1) employees performing work at the construction project subject to a project labor agreement shall have completed OSHA 10 Safety Training;

(2) any collective bargaining unit, contractor, or subcontractor subject to the project labor agreement shall provide or participate in a program that provides pre-apprenticeship training programs exclusively for Illinois residents who are individuals with barriers to employment and that partners with an office of a local workforce investment area designated by the Department of Commerce and Economic Opportunity or a community-based organization;

(3) any collective bargaining unit participating in a project labor agreement shall, 180 days after the effective date of this Act, provide at least (i) 10% of the workers to the project who meet the definitions under Section 2 of the Business Enterprise for Minorities, Women, and Persons with Disabilities Act and Section 10 of the Veterans Preference in Private Employment Act or (ii) a percentage of workers to the project who reflect the demographic makeup of the county where the project is located based on the determination made by the Commission as set forth in Section 25;

(4) any collective bargaining unit participating in a project labor agreement, on or after January 1, 2026, shall provide at least (i) 15% of the workers to the project who meet the definition under Section 2 of the Business Enterprise for Minorities, Women, and Persons with Disabilities Act and Section 10 of the Veterans Preference in Private Employment Act or (ii) a percentage of workers to the project who reflect the demographic makeup of the county where the project is located based on the determination made by the Commission as set forth in Section 25;

(5) any contractor or subcontractor participating in a project labor agreement shall, 180 days after the effective date of this Act, employ at least (i) 10% of its workforce who meet the definition under Section 2 of the Business Enterprise for Minorities, Women, and Persons with Disabilities Act and Section 10 of the Veterans Preference in Private Employment Act or (ii) a percentage of its employees who reflect the demographic makeup of the county where the project is located based on the determination made by the Commission as set forth in Section 25;

(6) any contractor or subcontractor participating in a project labor agreement shall, on or after January 1, 2026, employ at least (i) 15% of its employees who meet the definition under Section 2 of the Business Enterprise for Minorities, Women, and Persons with Disabilities and Section 10 of the Veterans Preference in Private Employment Act or (ii) a percentage of its employees who reflect the demographic makeup of the county where the project is located based on the determination made by the Commission as set forth in Section 25;

(7) any collective bargaining unit subject to a project labor agreement shall provide to its members a health and benefit plan that is in compliance with the federal Employee Retirement Income Security Act of 1974 and that is not listed on the U.S. Department of Labor's multiple employer pension plan list as critical and declining status, critical status, or endangered status; and

(8) any contractor or subcontractor subject to a project labor agreement shall provide to its employees health insurance and a retirement plan that is in compliance with the federal Employee Retirement Income Security Act of 1974 and that is not listed on the U.S. Department of Labor's multiple employer pension plan list as critical and declining status, critical status, or endangered status.

Section 20. Prequalification.

(a) Any collective bargaining unit, contractor, and subcontractor may prequalify with the Commission by indicating in writing that the collective bargaining, contractor, or subcontractor meets all the requirements of Section 15 and is not currently debarred under the Prevailing Wage Act. A prequalified collective bargaining unit, contractor, or subcontractor shall:

(1) be allowed to provide and hire its own workers for the project;

(2) be allowed to fund its own health and welfare benefits of its employees and shall only be liable for any health and welfare benefits required by a collective bargaining unit for members of the collective bargaining unit used by the contractor or subcontractor under the project labor agreement; and

(3) only be required to meet the terms of the project labor agreement during the project and not held signatory to a collective bargaining agreement once the contractor or subcontractor has completed its work on the project.

(b) A collective bargaining unit, contractor, or subcontractor shall remain prequalified for a period of one year after the date of approval by the Commission.

Section 25. Determination of demographic makeup.

(a) The Commission shall determine for each county in this State the demographic makeup of each county by using the most recent federal census data. The Commission shall post on its website its determination of the demographic makeup of each county of this State.

(b) The Commission shall include in its determination of the demographic makeup of each county (i) minority persons, as that term is defined in the Business Enterprise for Minorities, Women, and Persons with Disabilities Act; (ii) veterans, as that term is defined in the Veterans Preference in Private Employment Act; and (iii) persons who are located in rural or similarly situated geographic regions of this State.

Section 30. Complaints and appeals.

(a) A collective bargaining unit, contractor, or subcontractor that believes a collective bargaining unit, contractor, or subcontractor subject to a project labor agreement does not satisfy the requirements of Section 15 may file a complaint with the Commission.

(b) A collective bargaining unit, contractor, or subcontractor that the Commission determines has not satisfied the requirements set forth in Section 15 may file an appeal of the determination with the Commission.

(c) Any collective bargaining unit, contractor, or subcontractor determined to not be in compliance with this Act shall be prohibited from participating in a project labor agreement until it shows by a preponderance of the evidence that it is in compliance with this Act.

Section 35. Remediation fee.

(a) A collective bargaining unit, contractor, or subcontractor determined to not be in compliance with paragraphs (3), (4), (5), or (6) of subsection (b) of Section 15 shall pay to the Commission a remediation fee equal to the number of hours worked that failed to meet the employment guideline times the prevailing wage of the trade or trades. The Commission shall determine the remediation fee amount by using the certified payroll filed with the Department of Labor for the project.

(b) A collective bargaining unit, contractor or subcontractor determined not to be in compliance with paragraphs (3), (4), (5), or (6) of subsection (b) of Section 15 shall pay to the Commission a remediation fee, not to exceed $5,000 for each violation for each employee affected.

(c) Any funds collected by the Commission under this Act shall be deposited into the Local Construction Training and Development Fund.

Section 40. The Local Construction Training and Development Fund. The Local Construction Training and Development Fund is created as a special fund in the State treasury for the purpose of receiving moneys in accordance with subsection (c) of Section 35. Moneys in the fund shall be used by the Commission to:

(1) implement and enforce this Act; and

(2) award grants to support:

(A) local construction workforce training programs that are approved and registered by the U.S. Department of Labor and are recognized by the Department of Commerce and Economic Opportunity; and

(B) construction projects aimed at repurposing, redeveloping, or revitalizing nonperforming or underutilized real estate assets for the purpose of creating affordable workforce housing.

Section 45. Rulemaking. The Commission shall adopt any rules necessary for the implementation and enforcement of this Act, including procedures for hearings on issues of compliance with this Act.

Section 90. The State Finance Act is amended by adding Section 5.1030 as follows:

(30 ILCS 105/5.1030 new)

Sec. 5.1030. The Local Construction Training and Development Fund.

Section 95. The Project Labor Agreements Act is amended by changing Section 35 as follows:

(30 ILCS 571/35)

Sec. 35. Compliance. All State departments, agencies, authorities, boards, and instrumentalities shall ensure that all public works projects are implemented in a manner consistent with the terms of this Act and are in full compliance with all statutes, regulations, and Executive Orders, including the Best Interest of the State Act.

(Source: P.A. 97-199, eff. 7-27-11.)

Section 100. The Commission on Equity and Inclusion Act is amended by changing Section 40-10 as follows:

(30 ILCS 574/40-10)

(Text of Section before amendment by P.A. 103-961)

Sec. 40-10. Powers and duties. In addition to the other powers and duties which may be prescribed in this Act or elsewhere, the Commission shall have the following powers and duties:

(1) The Commission shall have a role in all State and university procurement by facilitating and streamlining communications between the Business Enterprise Council for Minorities, Women, and Persons with Disabilities, the purchasing entities, the Chief Procurement Officers, and others.

(2) The Commission may create a scoring evaluation for State agency directors, public university presidents and chancellors, and public community college presidents. The scoring shall be based on the following 3 principles: (i) increasing capacity; (ii) growing revenue; and (iii) enhancing credentials. These principles should be the foundation of the agency compliance plan required under Section 6 of the Business Enterprise for Minorities, Women, and Persons with Disabilities Act.

(3) The Commission shall exercise the authority and duties provided to it under Section 5-7 of the Illinois Procurement Code.

(4) The Commission, working with State agencies, shall provide support for diversity in State hiring.

(5) The Commission shall supervise the implementation and effectiveness of supplier diversity training of the State procurement workforce.

(6) Each January, and as otherwise frequently as may be deemed necessary and appropriate by the Commission, the Commission shall propose and submit to the Governor and the General Assembly legislative changes to increase inclusion and diversity in State government.

(7) The Commission shall have oversight over the following entities:

(A) the Illinois African-American Family Commission;

(B) the Illinois Latino Family Commission;

(C) the Asian American Family Commission;

(D) the Illinois Muslim American Advisory Council;

(E) the Illinois African-American Fair Contracting Commission created under Executive Order 2018-07; and

(F) the Business Enterprise Council for Minorities, Women, and Persons with Disabilities.

(8) The Commission shall adopt any rules necessary for the implementation and administration of the requirements of this Act.

(9) The Commission shall exercise the authority and duties provided to it under Section 45-57 of the Illinois Procurement Code.

(10) The Commission is responsible for completing studies as required by Section 35-15 of the Illinois Community Reinvestment Act.

(11) The Commission shall exercise the authority and duties provided to it under the Best Interest of the State Act.

(Source: P.A. 102-29, eff. 6-25-21; 102-671, eff. 11-30-21; 103-865, eff. 1-1-25; 103-959, eff. 1-1-25; revised 11-26-24.)

(Text of Section after amendment by P.A. 103-961)

Sec. 40-10. Powers and duties. In addition to the other powers and duties which may be prescribed in this Act or elsewhere, the Commission shall have the following powers and duties:

(1) The Commission shall have a role in all State and university procurement by facilitating and streamlining communications between the Business Enterprise Council for Minorities, Women, and Persons with Disabilities, the purchasing entities, the Chief Procurement Officers, and others.

(2) The Commission may create a scoring evaluation for State agency directors, public university presidents and chancellors, and public community college presidents. The scoring shall be based on the following 3 principles: (i) increasing capacity; (ii) growing revenue; and (iii) enhancing credentials. These principles should be the foundation of the agency compliance plan required under Section 6 of the Business Enterprise for Minorities, Women, and Persons with Disabilities Act.

(3) The Commission shall exercise the authority and duties provided to it under Section 5-7 of the Illinois Procurement Code.

(4) The Commission, working with State agencies, shall provide support for diversity in State hiring.

(5) The Commission shall supervise the implementation and effectiveness of supplier diversity training of the State procurement workforce.

(6) Each January, and as otherwise frequently as may be deemed necessary and appropriate by the Commission, the Commission shall propose and submit to the Governor and the General Assembly legislative changes to increase inclusion and diversity in State government.

(7) The Commission shall have oversight over the following entities:

(A) the Illinois African-American Family Commission;

(B) the Illinois Latino Family Commission;

(C) the Asian American Family Commission;

(D) the Illinois Muslim American Advisory Council;

(E) the Illinois African-American Fair Contracting Commission created under Executive Order 2018-07; and

(F) the Business Enterprise Council for Minorities, Women, and Persons with Disabilities.

(7.5) The Commission shall have oversight over the collection of supplier diversity reports by State agencies to the extent that those agencies are required to collect supplier diversity reports. This oversight shall include publishing, on the Commission's website, a copy of each such supplier diversity report submitted to a State agency and may include conducting an annual hearing with each State agency to discuss ongoing compliance with supplier diversity reporting requirements. The Commission is not responsible for ensuring compliance by the filers of supplier diversity reports to their respective agencies. The agencies subject to oversight by the Commission and the relevant voluntary supplier diversity reports include the following:

(A) the Health Facilities and Services Review Board for hospitals;

(B) the Department of Commerce and Economic Opportunity for tax credit recipients under the Economic Development for a Growing Economy Tax Credit Act;

(C) the Illinois Commerce Commission for utilities and railroads;

(D) the Illinois Gaming Board for casinos; and

(E) the Illinois Racing Board for race tracks.

(7.6) The Commission may hold public workshops focused on specific industries and reports to collaboratively connect diverse enterprises with entities that manage supplier diversity programs. These workshops may be modeled after Illinois Commerce Commission hearings for utilities and railroads that include a collaborative discussion of filed supplier diversity reports.

(8) The Commission shall adopt any rules necessary for the implementation and administration of the requirements of this Act.

(9) The Commission shall exercise the authority and duties provided to it under Section 45-57 of the Illinois Procurement Code.

(10) The Commission is responsible for completing studies as required by Section 35-15 of the Illinois Community Reinvestment Act.

(11) The Commission shall exercise the authority and duties provided to it under the Best Interest of the State Act.

(Source: P.A. 102-29, eff. 6-25-21; 102-671, eff. 11-30-21; 103-865, eff. 1-1-25; 103-959, eff. 1-1-25; 103-961, eff. 7-1-25; revised 11-26-24.)

Section 995. No acceleration or delay. Where this Act makes changes in a statute that is represented in this Act by text that is not yet or no longer in effect (for example, a Section represented by multiple versions), the use of that text does not accelerate or delay the taking effect of (i) the changes made by this Act or (ii) provisions derived from any other Public Act.

Section 997. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.

Section 999. Effective date. This Act takes effect January 1, 2026.