97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB1550

 

Introduced 2/9/2011, by Sen. William R. Haine

 

SYNOPSIS AS INTRODUCED:
 
820 ILCS 130/2  from Ch. 48, par. 39s-2
820 ILCS 130/3  from Ch. 48, par. 39s-3
820 ILCS 130/4  from Ch. 48, par. 39s-4

    Amends the Prevailing Wage Act. Provides that for a laborer, worker, or mechanic engaged in the transportation of aggregate or excavated materials or the operation of equipment to haul aggregate or excavated materials to or from the site of the building or construction job, the Department of Labor shall take into consideration the applicable prevailing wage rate and the Illinois Department of Transportation's current method of establishing equipment rates for trucks on public works projects. Defines various terms.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning employment.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Prevailing Wage Act is amended by changing
5Sections 2, 3, and 4 as follows:
 
6    (820 ILCS 130/2)  (from Ch. 48, par. 39s-2)
7    Sec. 2. This Act applies to the wages of laborers,
8mechanics and other workers employed in any public works, as
9hereinafter defined, by any public body and to anyone under
10contracts for public works. This includes any maintenance,
11repair, assembly, or disassembly work performed on equipment
12whether owned, leased, or rented.
13    As used in this Act, unless the context indicates
14otherwise:
15    "Public works" means all fixed works constructed or
16demolished by any public body, or paid for wholly or in part
17out of public funds. "Public works" as defined herein includes
18all projects financed in whole or in part with bonds, grants,
19loans, or other funds made available by or through the State or
20any of its political subdivisions, including but not limited
21to: bonds issued under the Industrial Project Revenue Bond Act
22(Article 11, Division 74 of the Illinois Municipal Code), the
23Industrial Building Revenue Bond Act, the Illinois Finance

 

 

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1Authority Act, the Illinois Sports Facilities Authority Act, or
2the Build Illinois Bond Act; loans or other funds made
3available pursuant to the Build Illinois Act; or funds from the
4Fund for Illinois' Future under Section 6z-47 of the State
5Finance Act, funds for school construction under Section 5 of
6the General Obligation Bond Act, funds authorized under Section
73 of the School Construction Bond Act, funds for school
8infrastructure under Section 6z-45 of the State Finance Act,
9and funds for transportation purposes under Section 4 of the
10General Obligation Bond Act. "Public works" also includes (i)
11all projects financed in whole or in part with funds from the
12Department of Commerce and Economic Opportunity under the
13Illinois Renewable Fuels Development Program Act for which
14there is no project labor agreement and (ii) all work performed
15pursuant to a public private agreement under the Public Private
16Agreements for the Illiana Expressway Act. "Public works" also
17includes all projects at leased facility property used for
18airport purposes under Section 35 of the Local Government
19Facility Lease Act. "Public works" also includes the
20construction of a new wind power facility by a business
21designated as a High Impact Business under Section 5.5(a)(3)(E)
22of the Illinois Enterprise Zone Act. "Public works" does not
23include work done directly by any public utility company,
24whether or not done under public supervision or direction, or
25paid for wholly or in part out of public funds. "Public works"
26does not include projects undertaken by the owner at an

 

 

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1owner-occupied single-family residence or at an owner-occupied
2unit of a multi-family residence.
3    "Construction" means all work on public works involving
4laborers, workers or mechanics. This includes any maintenance,
5repair, assembly, or disassembly work performed on equipment
6whether owned, leased, or rented.
7    "Locality" means the county where the physical work upon
8public works is performed, except (1) that if there is not
9available in the county a sufficient number of competent
10skilled laborers, workers and mechanics to construct the public
11works efficiently and properly, "locality" includes any other
12county nearest the one in which the work or construction is to
13be performed and from which such persons may be obtained in
14sufficient numbers to perform the work and (2) that, with
15respect to contracts for highway work with the Department of
16Transportation of this State, "locality" may at the discretion
17of the Secretary of the Department of Transportation be
18construed to include two or more adjacent counties from which
19workers may be accessible for work on such construction.
20    "Public body" means the State or any officer, board or
21commission of the State or any political subdivision or
22department thereof, or any institution supported in whole or in
23part by public funds, and includes every county, city, town,
24village, township, school district, irrigation, utility,
25reclamation improvement or other district and every other
26political subdivision, district or municipality of the state

 

 

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1whether such political subdivision, municipality or district
2operates under a special charter or not.
3    The terms "general prevailing rate of hourly wages",
4"general prevailing rate of wages" or "prevailing rate of
5wages" when used in this Act mean the hourly cash wages plus
6fringe benefits for training and apprenticeship programs
7approved by the U.S. Department of Labor, Bureau of
8Apprenticeship and Training, health and welfare, insurance,
9vacations and pensions paid generally, in the locality in which
10the work is being performed, to employees engaged in work of a
11similar character on public works.
12    "Aggregate or excavated materials" includes, but is not
13limited to, rock, gravel, sand, pebbles, dirt, soil, clay,
14bitumen, cultured/polymer, cement, concrete, asphalt, slag,
15grindings, and recycled materials.
16    A "stockpile" is aggregate or excavated materials that are
17placed in a location for temporary storage when all or
18substantially all of the aggregate or excavated material is
19relocated by loading and hauling it to another location for
20final placement.
21    "Trucking broker" means an individual or business entity,
22the activities of which include, but are not limited to:
23        (1) contracting to provide trucking services in the
24    construction industry to users of such services;
25        (2) contracting to obtain such service from providers
26    of trucking services;

 

 

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1        (3) dispatching the providers of the services to do
2    work as required by the users of the services;
3        (4) receiving payment from the users in consideration
4    of the trucking services provided; and
5        (5) making payment to the providers for the services.
6    "Trucking firm" means any legal business entity that owns
7one or more vehicles and hires the vehicles out for services to
8trucking brokers or contractors on public works projects.
9    "Independent truck owner-operator" means an individual,
10partnership, or principal stockholder of a corporation who owns
11or holds a vehicle under lease and who contracts that vehicle
12and the owner's services to an entity which provides
13construction services to a public works project.
14    "Transportation of aggregate or excavated materials" means
15any required hauling activities on the site of or to or from a
16public works project or stockpile regardless of whether the
17activity is performed by the prime contractor, subcontractor,
18trucking broker, trucking firm, independent contractor, or
19employee or agent of any of the foregoing entities, and
20regardless of which entity or person hires or contracts with
21another. The transportation of aggregate or excavated
22materials by employees of a contractor or subcontractor that
23operates an asphalt or concrete plant, that was moved into a
24gravel pit, borrow pit, or other location not on the project,
25primarily to serve public works projects is considered work
26under the contract.

 

 

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1    The transportation of aggregate or excavated materials
2includes, but is not limited to:
3        (1) the hauling of any or all stockpiled materials on
4    the project work site to other locations on the same
5    project even if the trucks leave the work site at some
6    point;
7        (2) the delivery of materials from any facility or any
8    stockpile to the project and the return haul to the
9    starting location either empty or loaded;
10        (3) the delivery of materials from another
11    construction project site to the public works project and
12    the return haul empty or loaded;
13        (4) the hauling required to remove any materials from
14    the public works project to a location off the project site
15    and the return haul either empty or loaded; and
16        (5) the delivery of materials by an employee of a
17    seller or supplier and the return haul to the off-site
18    facility or any stockpile empty or loaded by an employee of
19    the seller or supplier.
20(Source: P.A. 95-341, eff. 8-21-07; 96-28, eff. 7-1-09; 96-58,
21eff. 1-1-10; 96-186, eff. 1-1-10; 96-913, eff. 6-9-10; 96-1000,
22eff. 7-2-10.)
 
23    (820 ILCS 130/3)  (from Ch. 48, par. 39s-3)
24    Sec. 3. Not less than the general prevailing rate of hourly
25wages for work of a similar character on public works in the

 

 

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1locality in which the work is performed, and not less than the
2general prevailing rate of hourly wages for legal holiday and
3overtime work, shall be paid to all laborers, workers and
4mechanics employed by or on behalf of any public body engaged
5in the construction or demolition of public works. This
6includes any maintenance, repair, assembly, or disassembly
7work performed on equipment whether owned, leased, or rented.
8All Only such laborers, workers and mechanics as are directly
9employed by contractors or subcontractors in actual
10construction work on the site of the building or construction
11job shall be deemed to be employed upon public works. Laborers
12, and laborers, workers and mechanics engaged in the
13transportation of materials and equipment to or from the site
14shall also be deemed to be employed upon public works, except
15that the transportation of non-aggregate materials or
16equipment , but not including the transportation by the sellers
17and suppliers or the manufacture or processing of materials or
18equipment, in the execution of any contract or contracts for
19public works with any public body shall not be deemed to be
20employed upon public works. The transportation of aggregate or
21excavated materials to the job site or stockpile shall be
22deemed to be employment upon public works. The wage for a
23tradesman performing maintenance is equivalent to that of a
24tradesman engaged in construction or demolition.
25(Source: P.A. 95-341, eff. 8-21-07; 96-186, eff. 1-1-10.)
 

 

 

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1    (820 ILCS 130/4)  (from Ch. 48, par. 39s-4)
2    Sec. 4. Ascertaining prevailing wage.
3    (a) The public body awarding any contract for public work
4or otherwise undertaking any public works, shall ascertain the
5general prevailing rate of hourly wages in the locality in
6which the work is to be performed, for each craft or type of
7worker or mechanic needed to execute the contract, and where
8the public body performs the work without letting a contract
9therefor, shall ascertain the prevailing rate of wages on a per
10hour basis in the locality, and such public body shall specify
11in the resolution or ordinance and in the call for bids for the
12contract, that the general prevailing rate of wages in the
13locality for each craft or type of worker or mechanic needed to
14execute the contract or perform such work, also the general
15prevailing rate for legal holiday and overtime work, as
16ascertained by the public body or by the Department of Labor
17shall be paid for each craft or type of worker needed to
18execute the contract or to perform such work, and it shall be
19mandatory upon the contractor to whom the contract is awarded
20and upon any subcontractor under him, and where the public body
21performs the work, upon the public body, to pay not less than
22the specified rates to all laborers, workers and mechanics
23employed by them in the execution of the contract or such work;
24provided, however, that if the public body desires that the
25Department of Labor ascertain the prevailing rate of wages, it
26shall notify the Department of Labor to ascertain the general

 

 

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1prevailing rate of hourly wages for work under contract, or for
2work performed by a public body without letting a contract as
3required in the locality in which the work is to be performed,
4for each craft or type of worker or mechanic needed to execute
5the contract or project or work to be performed. Upon such
6notification the Department of Labor shall ascertain such
7general prevailing rate of wages, and certify the prevailing
8wage to such public body. For a laborer, worker, or mechanic
9engaged in the transportation of aggregate or excavated
10materials or the operation of equipment to haul aggregate or
11excavated materials to or from the site of the building or
12construction job, the Department of Labor shall take into
13consideration the applicable prevailing wage rate and the
14Illinois Department of Transportation's current method of
15establishing equipment rates for trucks on public works
16projects.
17    (a-1) The public body or other entity awarding the contract
18shall cause to be inserted in the project specifications and
19the contract a stipulation to the effect that not less than the
20prevailing rate of wages as found by the public body or
21Department of Labor or determined by the court on review shall
22be paid to all laborers, workers and mechanics performing work
23under the contract.
24    (a-2) When a public body or other entity covered by this
25Act has awarded work to a contractor without a public bid,
26contract or project specification, such public body or other

 

 

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1entity shall comply with subsection (a-1) by providing the
2contractor with written notice on the purchase order related to
3the work to be done or on a separate document indicating that
4not less than the prevailing rate of wages as found by the
5public body or Department of Labor or determined by the court
6on review shall be paid to all laborers, workers, and mechanics
7performing work on the project.
8    (a-3) Where a complaint is made and the Department of Labor
9determines that a violation occurred, the Department of Labor
10shall determine if proper written notice under this Section 4
11was given. If proper written notice was not provided to the
12contractor by the public body or other entity, the Department
13of Labor shall order the public body or other entity to pay any
14interest, penalties or fines that would have been owed by the
15contractor if proper written notice were provided. The failure
16by a public body or other entity to provide written notice does
17not relieve the contractor of the duty to comply with the
18prevailing wage rate, nor of the obligation to pay any back
19wages, as determined under this Act. For the purposes of this
20subsection, back wages shall be limited to the difference
21between the actual amount paid and the prevailing rate of wages
22required to be paid for the project. The failure of a public
23body or other entity to provide written notice under this
24Section 4 does not diminish the right of a laborer, worker, or
25mechanic to the prevailing rate of wages as determined under
26this Act.

 

 

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

 

 

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

 

 

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1    (c) A public body or other entity shall also require in all
2contractor's and subcontractor's bonds that the contractor or
3subcontractor include such provision as will guarantee the
4faithful performance of such prevailing wage clause as provided
5by contract or other written instrument. All bid specifications
6shall list the specified rates to all laborers, workers and
7mechanics in the locality for each craft or type of worker or
8mechanic needed to execute the contract.
9    (d) If the Department of Labor revises the prevailing rate
10of hourly wages to be paid by the public body, the revised rate
11shall apply to such contract, and the public body shall be
12responsible to notify the contractor and each subcontractor, of
13the revised rate.
14    (e) Two or more investigatory hearings under this Section
15on the issue of establishing a new prevailing wage
16classification for a particular craft or type of worker shall
17be consolidated in a single hearing before the Department. Such
18consolidation shall occur whether each separate investigatory
19hearing is conducted by a public body or the Department. The
20party requesting a consolidated investigatory hearing shall
21have the burden of establishing that there is no existing
22prevailing wage classification for the particular craft or type
23of worker in any of the localities under consideration.
24    (f) It shall be mandatory upon the contractor or
25construction manager to whom a contract for public works is
26awarded to post, at a location on the project site of the

 

 

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1public works that is easily accessible to the workers engaged
2on the project, the prevailing wage rates for each craft or
3type of worker or mechanic needed to execute the contract or
4project or work to be performed. In lieu of posting on the
5project site of the public works, a contractor which has a
6business location where laborers, workers, and mechanics
7regularly visit may: (1) post in a conspicuous location at that
8business the current prevailing wage rates for each county in
9which the contractor is performing work; or (2) provide such
10laborer, worker, or mechanic engaged on the public works
11project a written notice indicating the prevailing wage rates
12for the public works project. A failure to post or provide a
13prevailing wage rate as required by this Section is a violation
14of this Act.
15(Source: P.A. 95-331, eff. 8-21-07; 96-437, eff. 1-1-10.)