Full Text of HB4600 102nd General Assembly
HB4600sam002 102ND GENERAL ASSEMBLY | Sen. Cristina Castro Filed: 4/6/2022
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| 1 | | AMENDMENT TO HOUSE BILL 4600
| 2 | | AMENDMENT NO. ______. Amend House Bill 4600 by replacing | 3 | | everything after the enacting clause with the following:
| 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 |
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| 1 | | Representatives; | 2 | | (5) 2 members appointed by the Minority Leader of the | 3 | | House of Representatives; | 4 | | (6) 2 members appointed by the President of the | 5 | | Senate; | 6 | | (7) 2 members appointed by the Minority Leader of the | 7 | | Senate; and | 8 | | (8) 7 members representing the construction industry | 9 | | appointed by the Governor. | 10 | | The Department of Transportation shall provide | 11 | | administrative support to the Task Force. | 12 | | (b) The Task Force shall study innovative ways to reduce | 13 | | the cost of insurance in the private and public construction | 14 | | industry while protecting owners from risk of nonperformance. | 15 | | The Task Force shall consider options that include, but are | 16 | | not limited to, owner-financed insurance instead of | 17 | | contractor-financed insurance and alternative ways to manage | 18 | | risk other than bonds or other insurance products. | 19 | | (c) The Task Force shall report its findings and | 20 | | recommendations to the General Assembly no later than March 1, | 21 | | 2023. | 22 | | (d) This Section is repealed December 31, 2023. | 23 | | Section 10. If and only if House Bill 5412 of the 102nd | 24 | | General Assembly becomes law, then the Illinois Wage Payment | 25 | | and Collection Act is amended by changing Section 13.5 as |
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| 1 | | follows: | 2 | | (820 ILCS 115/13.5) | 3 | | Sec. 13.5. Primary contractor responsibility for wage
| 4 | | claims in construction industry. | 5 | | (a) For all contracts entered into on or after July 1,
| 6 | | 2022, a primary contractor making or taking a contract in the
| 7 | | State for the erection, construction, alteration, or repair of
| 8 | | a building, structure, or other private work in the State | 9 | | where the aggregate costs of the project exceed $20,000 ,
| 10 | | shall assume, and is liable for, any debt owed to a
claimant | 11 | | under this Section or to a third party on a wage claimant's | 12 | | behalf incurred pursuant to this Act by a subcontractor at
any | 13 | | tier acting under, by, or for the primary contractor for
the | 14 | | wage claimant's performance of labor included in the
subject | 15 | | of the contract between the primary contractor and the
owner. | 16 | | This Section does not apply to work performed by a
contractor | 17 | | of the federal government, the State, a special district, a | 18 | | city, a county,
or any political subdivision of the State. | 19 | | (b) As used in this Section: | 20 | | "Construction" means building, altering, repairing, | 21 | | improving, or demolishing any structure or building or making | 22 | | improvements of any kind to real property. | 23 | | "Primary contractor" means a contractor that has a direct
| 24 | | contractual relationship with a property owner. "Primary
| 25 | | contractor" may have the same meaning as a "general
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| 1 | | contractor", "prime contractor", or "construction manager". A | 2 | | property owner
who acts as a primary contractor related to the | 3 | | erection,
construction, alteration, or repair of his or her | 4 | | primary
residence
shall be exempt from liability under this
| 5 | | Section. | 6 | | "Private work" means any erection, construction,
| 7 | | alteration, or repair of a building, structure, or other work. | 8 | | "Subcontractor" means a contractor that has a contractual
| 9 | | relationship with the primary contractor or with another
| 10 | | subcontractor at any tier, who furnishes any goods or services
| 11 | | in connection with the contract between the primary contractor
| 12 | | and the property owner, but does not include contractors who
| 13 | | solely provide goods and transport of such goods related to
| 14 | | the contract. | 15 | | (c) The primary contractor's liability under this Section
| 16 | | shall extend only to any unpaid wages or fringe or other | 17 | | benefit payments or contributions, including interest owed, | 18 | | penalties assessed by the Department,
and reasonable | 19 | | attorney's fees, but shall not extend to
liquidated damages. | 20 | | (d) A primary contractor or any other person shall not
| 21 | | evade or commit any act that negates the requirements of this
| 22 | | Section. Except as otherwise provided in a contract between
| 23 | | the primary contractor and the subcontractor, the
| 24 | | subcontractor shall indemnify the primary contractor for any
| 25 | | wages, fringe or other benefit payments or contributions, | 26 | | damages, interest, penalties, or attorney's fees owed
as a |
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| 1 | | result of the subcontractor's failure to pay wages or fringe | 2 | | or other benefit payments or contributions
as provided in this | 3 | | Section, unless
the subcontractor's failure to pay was due to | 4 | | the
primary contractor's failure to pay moneys due to the
| 5 | | subcontractor in accordance with the terms of their
| 6 | | contractual relationship. | 7 | | (e) Nothing in this Section shall supersede or modify the | 8 | | obligations and liability that any primary contractor, | 9 | | subcontractor, or property owner may bear as an employer under | 10 | | this Act or any other applicable law. The obligations and | 11 | | remedies provided in this Section shall be in addition to any | 12 | | obligations and remedies otherwise provided by law. Nothing in | 13 | | this Section shall be construed to impose liability on a | 14 | | primary contractor for anything other than unpaid wages, | 15 | | fringe or other benefit payments or contributions, penalties | 16 | | assessed by the Department, interest owed, and reasonable | 17 | | attorney's fees. | 18 | | (f) Claims brought pursuant to this Section shall be done
| 19 | | so in accordance with Section 11 and 11.5 of this Act. Nothing | 20 | | in this Section shall be construed to provide a third party | 21 | | with the right to file a complaint with the Department | 22 | | alleging violation of this Section. | 23 | | (g) The following shall be exempt from liability under | 24 | | this Section: | 25 | | (1) primary contractors who are parties to a | 26 | | collective bargaining agreement on the project where the |
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| 1 | | work is being performed; and | 2 | | (2) primary contractors making or taking a contract in | 3 | | the State for the alteration or repair of an existing | 4 | | single-family dwelling or to a single residential unit in | 5 | | an existing multi-unit structure. Primary contractors who | 6 | | are parties to a collective bargaining agreement on the | 7 | | project where the work is being performed shall be exempt | 8 | | from this Section. | 9 | | (h) Prior to the commencement of any civil action, a | 10 | | claimant or a representative of a claimant shall provide | 11 | | written notice to the employer and to the primary contractor | 12 | | detailing the nature and basis for the claim. Failure of the | 13 | | employer or the primary contractor to resolve the claim within | 14 | | 10 days after receipt of this notice, or during any agreed upon | 15 | | period extending this deadline, may result in the filing of a | 16 | | civil action to enforce the provisions of this Act. | 17 | | (i) Claims brought pursuant to this Section shall be filed | 18 | | with the Department of Labor or filed with the circuit court | 19 | | within 3 years after the wages, final compensation, or wage | 20 | | supplements were due. This subsection does not apply to any | 21 | | other claims under this Act or any other applicable law | 22 | | against a primary contractor, subcontractor, or homeowner as | 23 | | an employer.
| 24 | | (Source: 10200HB5412eng.)
| 25 | | Section 99. Effective date. This Act takes effect upon |
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| 1 | | becoming law or on the date House Bill 5412 of the 102nd | 2 | | General Assembly takes effect, whichever is later.".
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