99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB3970

 

Introduced , by Rep. Joe Sosnowski

 

SYNOPSIS AS INTRODUCED:
 
820 ILCS 130/2  from Ch. 48, par. 39s-2
820 ILCS 130/4  from Ch. 48, par. 39s-4

    Amends the Prevailing Wage Act. Provides that "public works" does not include gardening-related maintenance projects, including but not limited to watering and pruning. Deletes provisions regarding investigatory hearings by the Department of Labor regarding new wage classifications. Requires the creation of any new prevailing wage classification to be established by the General Assembly.


LRB099 10003 JLS 30223 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3970LRB099 10003 JLS 30223 b

1    AN ACT concerning employment.
 
2    WHEREAS, The Illinois Administrative Procedure Act
3conditions the authority of a State agency's implementation,
4application, interpretation, or prescription of law or policy
5on rules being adopted in accordance with all provisions of
6that Act; therefore,
 
7    Be it enacted by the People of the State of Illinois,
8represented in the General Assembly:
 
9    Section 5. The Prevailing Wage Act is amended by changing
10Sections 2 and 4 as follows:
 
11    (820 ILCS 130/2)  (from Ch. 48, par. 39s-2)
12    Sec. 2. This Act applies to the wages of laborers,
13mechanics and other workers employed in any public works, as
14hereinafter defined, by any public body and to anyone under
15contracts for public works. This includes any maintenance,
16repair, assembly, or disassembly work performed on equipment
17whether owned, leased, or rented.
18    As used in this Act, unless the context indicates
19otherwise:
20    "Public works" means all fixed works constructed or
21demolished by any public body, or paid for wholly or in part
22out of public funds. "Public works" as defined herein includes

 

 

HB3970- 2 -LRB099 10003 JLS 30223 b

1all projects financed in whole or in part with bonds, grants,
2loans, or other funds made available by or through the State or
3any of its political subdivisions, including but not limited
4to: bonds issued under the Industrial Project Revenue Bond Act
5(Article 11, Division 74 of the Illinois Municipal Code), the
6Industrial Building Revenue Bond Act, the Illinois Finance
7Authority Act, the Illinois Sports Facilities Authority Act, or
8the Build Illinois Bond Act; loans or other funds made
9available pursuant to the Build Illinois Act; loans or other
10funds made available pursuant to the Riverfront Development
11Fund under Section 10-15 of the River Edge Redevelopment Zone
12Act; or funds from the Fund for Illinois' Future under Section
136z-47 of the State Finance Act, funds for school construction
14under Section 5 of the General Obligation Bond Act, funds
15authorized under Section 3 of the School Construction Bond Act,
16funds for school infrastructure under Section 6z-45 of the
17State Finance Act, and funds for transportation purposes under
18Section 4 of the General Obligation Bond Act. "Public works"
19also includes (i) all projects financed in whole or in part
20with funds from the Department of Commerce and Economic
21Opportunity under the Illinois Renewable Fuels Development
22Program Act for which there is no project labor agreement; (ii)
23all work performed pursuant to a public private agreement under
24the Public Private Agreements for the Illiana Expressway Act or
25the Public-Private Agreements for the South Suburban Airport
26Act; and (iii) all projects undertaken under a public-private

 

 

HB3970- 3 -LRB099 10003 JLS 30223 b

1agreement under the Public-Private Partnerships for
2Transportation Act. "Public works" also includes all projects
3at leased facility property used for airport purposes under
4Section 35 of the Local Government Facility Lease Act. "Public
5works" also includes the construction of a new wind power
6facility by a business designated as a High Impact Business
7under Section 5.5(a)(3)(E) of the Illinois Enterprise Zone Act.
8"Public works" does not include work done directly by any
9public utility company, whether or not done under public
10supervision or direction, or paid for wholly or in part out of
11public funds. "Public works" also includes any corrective
12action performed pursuant to Title XVI of the Environmental
13Protection Act for which payment from the Underground Storage
14Tank Fund is requested. "Public works" does not include
15projects undertaken by the owner at an owner-occupied
16single-family residence or at an owner-occupied unit of a
17multi-family residence. "Public works" does not include
18gardening-related maintenance projects, including watering and
19pruning. "Public works" does not include work performed for
20soil and water conservation purposes on agricultural lands,
21whether or not done under public supervision or paid for wholly
22or in part out of public funds, done directly by an owner or
23person who has legal control of those lands.
24    "Construction" means all work on public works involving
25laborers, workers or mechanics. This includes any maintenance,
26repair, assembly, or disassembly work performed on equipment

 

 

HB3970- 4 -LRB099 10003 JLS 30223 b

1whether owned, leased, or rented.
2    "Locality" means the county where the physical work upon
3public works is performed, except (1) that if there is not
4available in the county a sufficient number of competent
5skilled laborers, workers and mechanics to construct the public
6works efficiently and properly, "locality" includes any other
7county nearest the one in which the work or construction is to
8be performed and from which such persons may be obtained in
9sufficient numbers to perform the work and (2) that, with
10respect to contracts for highway work with the Department of
11Transportation of this State, "locality" may at the discretion
12of the Secretary of the Department of Transportation be
13construed to include two or more adjacent counties from which
14workers may be accessible for work on such construction.
15    "Public body" means the State or any officer, board or
16commission of the State or any political subdivision or
17department thereof, or any institution supported in whole or in
18part by public funds, and includes every county, city, town,
19village, township, school district, irrigation, utility,
20reclamation improvement or other district and every other
21political subdivision, district or municipality of the state
22whether such political subdivision, municipality or district
23operates under a special charter or not.
24    The terms "general prevailing rate of hourly wages",
25"general prevailing rate of wages" or "prevailing rate of
26wages" when used in this Act mean the hourly cash wages plus

 

 

HB3970- 5 -LRB099 10003 JLS 30223 b

1annualized fringe benefits for training and apprenticeship
2programs approved by the U.S. Department of Labor, Bureau of
3Apprenticeship and Training, health and welfare, insurance,
4vacations and pensions paid generally, in the locality in which
5the work is being performed, to employees engaged in work of a
6similar character on public works.
7(Source: P.A. 97-502, eff. 8-23-11; 98-109, eff. 7-25-13;
898-482, eff. 1-1-14; 98-740, eff. 7-16-14; 98-756, eff.
97-16-14.)
 
10    (820 ILCS 130/4)  (from Ch. 48, par. 39s-4)
11    Sec. 4. Ascertaining prevailing wage.
12    (a) The public body awarding any contract for public work
13or otherwise undertaking any public works, shall ascertain the
14general prevailing rate of hourly wages in the locality in
15which the work is to be performed, for each craft or type of
16worker or mechanic needed to execute the contract, and where
17the public body performs the work without letting a contract
18therefor, shall ascertain the prevailing rate of wages on a per
19hour basis in the locality, and such public body shall specify
20in the resolution or ordinance and in the call for bids for the
21contract, that the general prevailing rate of wages in the
22locality for each craft or type of worker or mechanic needed to
23execute the contract or perform such work, also the general
24prevailing rate for legal holiday and overtime work, as
25ascertained by the public body or by the Department of Labor

 

 

HB3970- 6 -LRB099 10003 JLS 30223 b

1shall be paid for each craft or type of worker needed to
2execute the contract or to perform such work, and it shall be
3mandatory upon the contractor to whom the contract is awarded
4and upon any subcontractor under him, and where the public body
5performs the work, upon the public body, to pay not less than
6the specified rates to all laborers, workers and mechanics
7employed by them in the execution of the contract or such work;
8provided, however, that if the public body desires that the
9Department of Labor ascertain the prevailing rate of wages, it
10shall notify the Department of Labor to ascertain the general
11prevailing rate of hourly wages for work under contract, or for
12work performed by a public body without letting a contract as
13required in the locality in which the work is to be performed,
14for each craft or type of worker or mechanic needed to execute
15the contract or project or work to be performed. Upon such
16notification the Department of Labor shall ascertain such
17general prevailing rate of wages, and certify the prevailing
18wage to such public body.
19    (a-1) The public body or other entity awarding the contract
20shall cause to be inserted in the project specifications and
21the contract a stipulation to the effect that not less than the
22prevailing rate of wages as found by the public body or
23Department of Labor or determined by the court on review shall
24be paid to all laborers, workers and mechanics performing work
25under the contract.
26    (a-2) When a public body or other entity covered by this

 

 

HB3970- 7 -LRB099 10003 JLS 30223 b

1Act has awarded work to a contractor without a public bid,
2contract or project specification, such public body or other
3entity shall comply with subsection (a-1) by providing the
4contractor with written notice on the purchase order related to
5the work to be done or on a separate document indicating that
6not less than the prevailing rate of wages as found by the
7public body or Department of Labor or determined by the court
8on review shall be paid to all laborers, workers, and mechanics
9performing work on the project.
10    (a-3) Where a complaint is made and the Department of Labor
11determines that a violation occurred, the Department of Labor
12shall determine if proper written notice under this Section 4
13was given. If proper written notice was not provided to the
14contractor by the public body or other entity, the Department
15of Labor shall order the public body or other entity to pay any
16interest, penalties or fines that would have been owed by the
17contractor if proper written notice were provided. The failure
18by a public body or other entity to provide written notice does
19not relieve the contractor of the duty to comply with the
20prevailing wage rate, nor of the obligation to pay any back
21wages, as determined under this Act. For the purposes of this
22subsection, back wages shall be limited to the difference
23between the actual amount paid and the prevailing rate of wages
24required to be paid for the project. The failure of a public
25body or other entity to provide written notice under this
26Section 4 does not diminish the right of a laborer, worker, or

 

 

HB3970- 8 -LRB099 10003 JLS 30223 b

1mechanic to the prevailing rate of wages as determined under
2this Act.
3    (b) It shall also be mandatory upon the contractor to whom
4the contract is awarded to insert into each subcontract and
5into the project specifications for each subcontract a written
6stipulation to the effect that not less than the prevailing
7rate of wages shall be paid to all laborers, workers, and
8mechanics performing work under the contract. It shall also be
9mandatory upon each subcontractor to cause to be inserted into
10each lower tiered subcontract and into the project
11specifications for each lower tiered subcontract a stipulation
12to the effect that not less than the prevailing rate of wages
13shall be paid to all laborers, workers, and mechanics
14performing work under the contract. A contractor or
15subcontractor who fails to comply with this subsection (b) is
16in violation of this Act.
17    (b-1) When a contractor has awarded work to a subcontractor
18without a contract or contract specification, the contractor
19shall comply with subsection (b) by providing a subcontractor
20with a written statement indicating that not less than the
21prevailing rate of wages shall be paid to all laborers,
22workers, and mechanics performing work on the project. A
23contractor or subcontractor who fails to comply with this
24subsection (b-1) is in violation of this Act.
25    (b-2) Where a complaint is made and the Department of Labor
26determines that a violation has occurred, the Department of

 

 

HB3970- 9 -LRB099 10003 JLS 30223 b

1Labor shall determine if proper written notice under this
2Section 4 was given. If proper written notice was not provided
3to the subcontractor by the contractor, the Department of Labor
4shall order the contractor to pay any interest, penalties, or
5fines that would have been owed by the subcontractor if proper
6written notice were provided. The failure by a contractor to
7provide written notice to a subcontractor does not relieve the
8subcontractor of the duty to comply with the prevailing wage
9rate, nor of the obligation to pay any back wages, as
10determined under this Act. For the purposes of this subsection,
11back wages shall be limited to the difference between the
12actual amount paid and the prevailing rate of wages required
13for the project. However, if proper written notice was not
14provided to the contractor by the public body or other entity
15under this Section 4, the Department of Labor shall order the
16public body or other entity to pay any interest, penalties, or
17fines that would have been owed by the subcontractor if proper
18written notice were provided. The failure by a public body or
19other entity to provide written notice does not relieve the
20subcontractor of the duty to comply with the prevailing wage
21rate, nor of the obligation to pay any back wages, as
22determined under this Act. For the purposes of this subsection,
23back wages shall be limited to the difference between the
24actual amount paid and the prevailing rate of wages required
25for the project. The failure to provide written notice by a
26public body, other entity, or contractor does not diminish the

 

 

HB3970- 10 -LRB099 10003 JLS 30223 b

1right of a laborer, worker, or mechanic to the prevailing rate
2of wages as determined under this Act.
3    (c) A public body or other entity shall also require in all
4contractor's and subcontractor's bonds that the contractor or
5subcontractor include such provision as will guarantee the
6faithful performance of such prevailing wage clause as provided
7by contract or other written instrument. All bid specifications
8shall list the specified rates to all laborers, workers and
9mechanics in the locality for each craft or type of worker or
10mechanic needed to execute the contract.
11    (d) If the Department of Labor revises the prevailing rate
12of hourly wages to be paid by the public body or other entity,
13the revised rate shall apply to such contract, and the public
14body or other entity shall be responsible to notify the
15contractor and each subcontractor, of the revised rate.
16    The public body or other entity shall discharge its duty to
17notify of the revised rates by inserting a written stipulation
18in all contracts or other written instruments that states the
19prevailing rate of wages are revised by the Department of Labor
20and are available on the Department's official website. This
21shall be deemed to be proper notification of any rate changes
22under this subsection.
23    (e) (Blank) Two or more investigatory hearings under this
24Section on the issue of establishing a new prevailing wage
25classification for a particular craft or type of worker shall
26be consolidated in a single hearing before the Department. Such

 

 

HB3970- 11 -LRB099 10003 JLS 30223 b

1consolidation shall occur whether each separate investigatory
2hearing is conducted by a public body or the Department. The
3party requesting a consolidated investigatory hearing shall
4have the burden of establishing that there is no existing
5prevailing wage classification for the particular craft or type
6of worker in any of the localities under consideration.
7    (f) It shall be mandatory upon the contractor or
8construction manager to whom a contract for public works is
9awarded to post, at a location on the project site of the
10public works that is easily accessible to the workers engaged
11on the project, the prevailing wage rates for each craft or
12type of worker or mechanic needed to execute the contract or
13project or work to be performed. In lieu of posting on the
14project site of the public works, a contractor which has a
15business location where laborers, workers, and mechanics
16regularly visit may: (1) post in a conspicuous location at that
17business the current prevailing wage rates for each county in
18which the contractor is performing work; or (2) provide such
19laborer, worker, or mechanic engaged on the public works
20project a written notice indicating the prevailing wage rates
21for the public works project. A failure to post or provide a
22prevailing wage rate as required by this Section is a violation
23of this Act.
24    (g) The creation of any new prevailing wage classification
25shall be established by the General Assembly.
26(Source: P.A. 96-437, eff. 1-1-10; 97-964, eff. 1-1-13.)