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1 | AN ACT concerning employment.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. If and only if House Bill 5412 of the 102nd | ||||||
5 | General Assembly becomes law, then the Department of | ||||||
6 | Transportation Law of the
Civil Administrative Code of | ||||||
7 | Illinois is amended by adding Section 2705-620 as follows: | ||||||
8 | (20 ILCS 2705/2705-620 new) | ||||||
9 | Sec. 2705-620. Bond Reform in the Construction Industry | ||||||
10 | Task Force. | ||||||
11 | (a) There is created the Bond Reform in the Construction | ||||||
12 | Industry Task Force consisting of the following members: | ||||||
13 | (1) the Governor, or his or her designee; | ||||||
14 | (2) the State Treasurer, or his or her designee; | ||||||
15 | (3) the Director of Insurance, or his or her designee; | ||||||
16 | (4) 2 members appointed by the Speaker of the House of | ||||||
17 | Representatives; | ||||||
18 | (5) 2 members appointed by the Minority Leader of the | ||||||
19 | House of Representatives; | ||||||
20 | (6) 2 members appointed by the President of the | ||||||
21 | Senate; | ||||||
22 | (7) 2 members appointed by the Minority Leader of the | ||||||
23 | Senate; and |
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1 | (8) 7 members representing the construction industry | ||||||
2 | appointed by the Governor. | ||||||
3 | The Department of Transportation shall provide | ||||||
4 | administrative support to the Task Force. | ||||||
5 | (b) The Task Force shall study innovative ways to reduce | ||||||
6 | the cost of insurance in the private and public construction | ||||||
7 | industry while protecting owners from risk of nonperformance. | ||||||
8 | The Task Force shall consider options that include, but are | ||||||
9 | not limited to, owner-financed insurance instead of | ||||||
10 | contractor-financed insurance and alternative ways to manage | ||||||
11 | risk other than bonds or other insurance products. | ||||||
12 | (c) The Task Force shall report its findings and | ||||||
13 | recommendations to the General Assembly no later than March 1, | ||||||
14 | 2023. | ||||||
15 | (d) This Section is repealed December 31, 2023. | ||||||
16 | Section 10. If and only if House Bill 5412 of the 102nd | ||||||
17 | General Assembly becomes law, then the Illinois Wage Payment | ||||||
18 | and Collection Act is amended by changing Section 13.5 as | ||||||
19 | follows: | ||||||
20 | (820 ILCS 115/13.5) | ||||||
21 | Sec. 13.5. Primary contractor responsibility for wage
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22 | claims in construction industry. | ||||||
23 | (a) For all contracts entered into on or after July 1,
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24 | 2022, a primary contractor making or taking a contract in the
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1 | State for the erection, construction, alteration, or repair of
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2 | a building, structure, or other private work in the State | ||||||
3 | where the aggregate costs of the project exceed $20,000 ,
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4 | shall assume, and is liable for, any debt owed to a
claimant | ||||||
5 | under this Section or to a third party on a wage claimant's | ||||||
6 | behalf incurred pursuant to this Act by a subcontractor at
any | ||||||
7 | tier acting under, by, or for the primary contractor for
the | ||||||
8 | wage claimant's performance of labor included in the
subject | ||||||
9 | of the contract between the primary contractor and the
owner. | ||||||
10 | This Section does not apply to work performed by a
contractor | ||||||
11 | of the federal government, the State, a special district, a | ||||||
12 | city, a county,
or any political subdivision of the State. | ||||||
13 | (b) As used in this Section: | ||||||
14 | "Construction" means building, altering, repairing, | ||||||
15 | improving, or demolishing any structure or building or making | ||||||
16 | improvements of any kind to real property. | ||||||
17 | "Primary contractor" means a contractor that has a direct
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18 | contractual relationship with a property owner. "Primary
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19 | contractor" may have the same meaning as a "general
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20 | contractor", "prime contractor", or "construction manager". A | ||||||
21 | property owner
who acts as a primary contractor related to the | ||||||
22 | erection,
construction, alteration, or repair of his or her | ||||||
23 | primary
residence
shall be exempt from liability under this
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24 | Section. | ||||||
25 | "Private work" means any erection, construction,
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26 | alteration, or repair of a building, structure, or other work. |
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1 | "Subcontractor" means a contractor that has a contractual
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2 | relationship with the primary contractor or with another
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3 | subcontractor at any tier, who furnishes any goods or services
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4 | in connection with the contract between the primary contractor
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5 | and the property owner, but does not include contractors who
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6 | solely provide goods and transport of such goods related to
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7 | the contract. | ||||||
8 | (c) The primary contractor's liability under this Section
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9 | shall extend only to any unpaid wages or fringe or other | ||||||
10 | benefit payments or contributions, including interest owed, | ||||||
11 | penalties assessed by the Department,
and reasonable | ||||||
12 | attorney's fees, but shall not extend to
liquidated damages. | ||||||
13 | (d) A primary contractor or any other person shall not
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14 | evade or commit any act that negates the requirements of this
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15 | Section. Except as otherwise provided in a contract between
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16 | the primary contractor and the subcontractor, the
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17 | subcontractor shall indemnify the primary contractor for any
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18 | wages, fringe or other benefit payments or contributions, | ||||||
19 | damages, interest, penalties, or attorney's fees owed
as a | ||||||
20 | result of the subcontractor's failure to pay wages or fringe | ||||||
21 | or other benefit payments or contributions
as provided in this | ||||||
22 | Section, unless
the subcontractor's failure to pay was due to | ||||||
23 | the
primary contractor's failure to pay moneys due to the
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24 | subcontractor in accordance with the terms of their
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25 | contractual relationship. | ||||||
26 | (e) Nothing in this Section shall supersede or modify the |
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1 | obligations and liability that any primary contractor, | ||||||
2 | subcontractor, or property owner may bear as an employer under | ||||||
3 | this Act or any other applicable law. The obligations and | ||||||
4 | remedies provided in this Section shall be in addition to any | ||||||
5 | obligations and remedies otherwise provided by law. Nothing in | ||||||
6 | this Section shall be construed to impose liability on a | ||||||
7 | primary contractor for anything other than unpaid wages, | ||||||
8 | fringe or other benefit payments or contributions, penalties | ||||||
9 | assessed by the Department, interest owed, and reasonable | ||||||
10 | attorney's fees. | ||||||
11 | (f) Claims brought pursuant to this Section shall be done
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12 | so in accordance with Section 11 and 11.5 of this Act. Nothing | ||||||
13 | in this Section shall be construed to provide a third party | ||||||
14 | with the right to file a complaint with the Department | ||||||
15 | alleging violation of this Section. | ||||||
16 | (g) The following shall be exempt from liability under | ||||||
17 | this Section: | ||||||
18 | (1) primary contractors who are parties to a | ||||||
19 | collective bargaining agreement on the project where the | ||||||
20 | work is being performed; and | ||||||
21 | (2) primary contractors making or taking a contract in | ||||||
22 | the State for the alteration or repair of an existing | ||||||
23 | single-family dwelling or to a single residential unit in | ||||||
24 | an existing multi-unit structure. Primary contractors who | ||||||
25 | are parties to a collective bargaining agreement on the | ||||||
26 | project where the work is being performed shall be exempt |
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1 | from this Section. | ||||||
2 | (h) Prior to the commencement of any civil action, a | ||||||
3 | claimant or a representative of a claimant shall provide | ||||||
4 | written notice to the employer and to the primary contractor | ||||||
5 | detailing the nature and basis for the claim. Failure of the | ||||||
6 | employer or the primary contractor to resolve the claim within | ||||||
7 | 10 days after receipt of this notice, or during any agreed upon | ||||||
8 | period extending this deadline, may result in the filing of a | ||||||
9 | civil action to enforce the provisions of this Act. | ||||||
10 | (i) Claims brought pursuant to this Section shall be filed | ||||||
11 | with the Department of Labor or filed with the circuit court | ||||||
12 | within 3 years after the wages, final compensation, or wage | ||||||
13 | supplements were due. This subsection does not apply to any | ||||||
14 | other claims under this Act or any other applicable law | ||||||
15 | against a primary contractor, subcontractor, or homeowner as | ||||||
16 | an employer.
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17 | (Source: 10200HB5412eng.)
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18 | Section 99. Effective date. This Act takes effect upon | ||||||
19 | becoming law or on the date House Bill 5412 of the 102nd | ||||||
20 | General Assembly takes effect, whichever is later.
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