Full Text of SB2253 99th General Assembly
SB2253 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 SB2253 Introduced 1/27/2016, by Sen. Pamela J. Althoff SYNOPSIS AS INTRODUCED: |
| 820 ILCS 130/2 | from Ch. 48, par. 39s-2 | 820 ILCS 130/4 | from Ch. 48, par. 39s-4 | 820 ILCS 130/11a | from Ch. 48, par. 39s-11a |
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Amends the Prevailing Wage Act. Defines "compensatory damages" and "actual damages" as the sum of economic and non-economic damages. Provides that any individual, contractor, or subcontractor who has been aggrieved by a filed false complaint may institute a civil action for damages, including, but not limited to, compensatory damages, legal fees, administrative fees, penalties assessed by the Department of Labor pursuant to the complaint, injunctive relief, and other appropriate equitable relief. Provides that no public body, including a home rule unit, is authorized to use as a basis for denying a contract to a contractor or subcontractor any complaint filed with the Department or any determination by the Department that the contractor or subcontractor has committed a violation under this Act, unless the contractor or subcontractor is debarred at the time of the bid. Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | | HOME RULE 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,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Prevailing Wage Act is amended by changing | 5 | | Sections 2, 4, and 11a as follows:
| 6 | | (820 ILCS 130/2) (from Ch. 48, par. 39s-2)
| 7 | | Sec. 2. This Act applies to the wages of laborers, | 8 | | mechanics and
other workers employed in any public works, as | 9 | | hereinafter defined, by
any public body and to anyone under | 10 | | contracts for public works. This includes any maintenance, | 11 | | repair, assembly, or disassembly work performed on equipment | 12 | | whether owned, leased, or rented.
| 13 | | As used in this Act, unless the context indicates | 14 | | otherwise:
| 15 | | "Public works" means all fixed works constructed or | 16 | | demolished by
any public body,
or paid for wholly or in part | 17 | | out of public funds. "Public works" as
defined herein includes | 18 | | all projects financed in whole
or in part with bonds, grants, | 19 | | loans, or other funds made available by or through the State or | 20 | | any of its political subdivisions, including but not limited | 21 | | to: bonds issued under the Industrial Project Revenue Bond
Act | 22 | | (Article 11, Division 74 of the Illinois Municipal Code), the | 23 | | Industrial
Building Revenue Bond Act, the Illinois Finance |
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| 1 | | Authority Act,
the Illinois Sports Facilities Authority Act, or | 2 | | the Build Illinois Bond Act; loans or other funds made
| 3 | | available pursuant to the Build Illinois Act; loans or other | 4 | | funds made available pursuant to the Riverfront Development | 5 | | Fund under Section 10-15 of the River Edge Redevelopment Zone | 6 | | Act; or funds from the Fund for
Illinois' Future under Section | 7 | | 6z-47 of the State Finance Act, funds for school
construction | 8 | | under Section 5 of the General Obligation Bond Act, funds
| 9 | | authorized under Section 3 of the School Construction Bond Act, | 10 | | funds for
school infrastructure under Section 6z-45 of the | 11 | | State Finance Act, and funds
for transportation purposes under | 12 | | Section 4 of the General Obligation Bond
Act. "Public works" | 13 | | also includes (i) all projects financed in whole or in part
| 14 | | with funds from the Department of Commerce and Economic | 15 | | Opportunity under the Illinois Renewable Fuels Development | 16 | | Program
Act for which there is no project labor agreement; (ii) | 17 | | all work performed pursuant to a public private agreement under | 18 | | the Public Private Agreements for the Illiana Expressway Act or | 19 | | the Public-Private Agreements for the South Suburban Airport | 20 | | Act; and (iii) all projects undertaken under a public-private | 21 | | agreement under the Public-Private Partnerships for | 22 | | Transportation Act. "Public works" also includes all projects | 23 | | at leased facility property used for airport purposes under | 24 | | Section 35 of the Local Government Facility Lease Act. "Public | 25 | | works" also includes the construction of a new wind power | 26 | | facility by a business designated as a High Impact Business |
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| 1 | | under Section 5.5(a)(3)(E) of the Illinois Enterprise Zone Act.
| 2 | | "Public works" does not include work done directly by any | 3 | | public utility company, whether or not done under public | 4 | | supervision or direction, or paid for wholly or in part out of | 5 | | public funds. "Public works" also includes any corrective | 6 | | action performed pursuant to Title XVI of the Environmental | 7 | | Protection Act for which payment from the Underground Storage | 8 | | Tank Fund is requested. "Public works" does not include | 9 | | projects undertaken by the owner at an owner-occupied | 10 | | single-family residence or at an owner-occupied unit of a | 11 | | multi-family residence. "Public works" does not include work | 12 | | performed for soil and water conservation purposes on | 13 | | agricultural lands, whether or not done under public | 14 | | supervision or paid for wholly or in part out of public funds, | 15 | | done directly by an owner or person who has legal control of | 16 | | those lands.
| 17 | | "Compensatory damages" or "actual damages" are the sum of | 18 | | economic and non-economic damages. | 19 | | "Construction" means all work on public works involving | 20 | | laborers,
workers or mechanics. This includes any maintenance, | 21 | | repair, assembly, or disassembly work performed on equipment | 22 | | whether owned, leased, or rented.
| 23 | | "Locality" means the county where the physical work upon | 24 | | public works
is performed, except (1) that if there is not | 25 | | available in the county a
sufficient number of competent | 26 | | skilled laborers, workers and mechanics
to construct the public |
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| 1 | | works efficiently and properly, "locality"
includes any other | 2 | | county nearest the one in which the work or
construction is to | 3 | | be performed and from which such persons may be
obtained in | 4 | | sufficient numbers to perform the work and (2) that, with
| 5 | | respect to contracts for highway work with the Department of
| 6 | | Transportation of this State, "locality" may at the discretion | 7 | | of the
Secretary of the Department of Transportation be | 8 | | construed to include
two or more adjacent counties from which | 9 | | workers may be accessible for
work on such construction.
| 10 | | "Public body" means the State or any officer, board or | 11 | | commission of
the State or any political subdivision or | 12 | | department thereof, or any
institution supported in whole or in | 13 | | part by public funds,
and includes every county, city, town,
| 14 | | village, township, school district, irrigation, utility, | 15 | | reclamation
improvement or other district and every other | 16 | | political subdivision,
district or municipality of the state | 17 | | whether such political
subdivision, municipality or district | 18 | | operates under a special charter
or not.
| 19 | | The terms "general prevailing rate of hourly wages", | 20 | | "general
prevailing rate of wages" or "prevailing rate of | 21 | | wages" when used in
this Act mean the hourly cash wages plus | 22 | | annualized fringe benefits for training and
apprenticeship | 23 | | programs approved by the U.S. Department of Labor, Bureau of
| 24 | | Apprenticeship and Training, health and welfare, insurance, | 25 | | vacations and
pensions paid generally, in the
locality in which | 26 | | the work is being performed, to employees engaged in
work of a |
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| 1 | | similar character on public works.
| 2 | | (Source: P.A. 97-502, eff. 8-23-11; 98-109, eff. 7-25-13; | 3 | | 98-482, eff. 1-1-14; 98-740, eff. 7-16-14; 98-756, eff. | 4 | | 7-16-14.)
| 5 | | (820 ILCS 130/4) (from Ch. 48, par. 39s-4)
| 6 | | Sec. 4. Ascertaining prevailing wage. | 7 | | (a) The public body awarding any contract for public work | 8 | | or
otherwise undertaking any public works, shall ascertain the | 9 | | general
prevailing rate of hourly wages in the locality in | 10 | | which the work is to
be performed, for each craft or type of | 11 | | worker or mechanic needed to
execute the contract, and where | 12 | | the public body performs the work
without letting a contract | 13 | | therefor, shall ascertain the prevailing rate
of wages on a per | 14 | | hour basis in the locality, and such public body shall
specify | 15 | | in the resolution or ordinance and in the call for bids for the
| 16 | | contract, that the general prevailing rate of wages in the | 17 | | locality for
each craft or type of worker or mechanic needed to | 18 | | execute the contract
or perform such work, also the general | 19 | | prevailing rate for legal holiday
and overtime work, as | 20 | | ascertained by the public body or by the
Department of Labor | 21 | | shall be paid for each craft or type of worker
needed to | 22 | | execute the contract or to perform such work, and it shall be
| 23 | | mandatory upon the contractor to whom the contract is awarded | 24 | | and upon
any subcontractor under him, and where the public body | 25 | | performs the
work, upon the public body, to pay not less than |
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| 1 | | the specified rates to
all laborers, workers and mechanics | 2 | | employed by them in the execution of
the contract or such work; | 3 | | provided, however, that if the public body
desires that the | 4 | | Department of Labor ascertain the prevailing rate of
wages, it | 5 | | shall notify the Department of Labor to ascertain the general
| 6 | | prevailing rate of hourly wages for work under contract, or for | 7 | | work
performed by a public body without letting a contract as | 8 | | required in the
locality in which the work is to be performed, | 9 | | for each craft or type of
worker or mechanic needed to execute | 10 | | the contract or project or work to
be performed. Upon such | 11 | | notification the Department of Labor shall
ascertain such | 12 | | general prevailing rate of wages, and certify the
prevailing | 13 | | wage to such public body. | 14 | | (a-1) The public body or other entity awarding the
contract | 15 | | shall cause to be inserted in the project specifications and | 16 | | the
contract a stipulation to the
effect that not less than the | 17 | | prevailing rate of wages as found by the
public body or | 18 | | Department of Labor or determined by the court on review
shall | 19 | | be paid to all laborers, workers and mechanics performing work
| 20 | | under the contract.
| 21 | | (a-2) When a public body or other entity covered by this | 22 | | Act has awarded work to a contractor without a public bid, | 23 | | contract or project specification, such public body or other | 24 | | entity shall comply with subsection (a-1) by providing the | 25 | | contractor with written notice on the purchase order related to | 26 | | the work to be done or on a separate document indicating that |
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| 1 | | not less than the prevailing rate of wages as found by the | 2 | | public body or Department of Labor or determined by the court | 3 | | on review shall be paid to all laborers, workers, and mechanics | 4 | | performing work on the project. | 5 | | (a-3) Where a complaint is made and the Department of Labor | 6 | | determines that a violation occurred, the Department of Labor | 7 | | shall determine if proper written notice under this Section 4 | 8 | | was given. If proper written notice was not provided to the | 9 | | contractor by the public body or other entity, the Department | 10 | | of Labor shall order the public body or other entity to pay any | 11 | | interest, penalties or fines that would have been owed by the | 12 | | contractor if proper written notice were provided. The failure | 13 | | by a public body or other entity to provide written notice does | 14 | | not relieve the contractor of the duty to comply with the | 15 | | prevailing wage rate, nor of the obligation to pay any back | 16 | | wages, as determined under this Act. For the purposes of this | 17 | | subsection, back wages shall be limited to the difference | 18 | | between the actual amount paid and the prevailing rate of wages | 19 | | required to be paid for the project. The failure of a public | 20 | | body or other entity to provide written notice under this | 21 | | Section 4 does not diminish the right of a laborer, worker, or | 22 | | mechanic to the prevailing rate of wages as determined under | 23 | | this Act. | 24 | | (a-4) Any individual, contractor, or subcontractor who has | 25 | | been aggrieved by a filed false complaint may institute a civil | 26 | | action for damages, including, but not limited to, compensatory |
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| 1 | | damages, legal fees, administrative fees, penalties assessed | 2 | | by the Department of Labor pursuant to the complaint, | 3 | | injunctive relief, and other appropriate equitable relief. Any | 4 | | person found to knowingly file a false complaint shall be | 5 | | liable to the individual, contractor, or subcontractor who was | 6 | | falsely accused for damages as provided in this subsection. | 7 | | (b) It shall also be mandatory upon the contractor to whom | 8 | | the contract is
awarded
to insert into each subcontract and | 9 | | into the project specifications for each
subcontract a written | 10 | | stipulation to the effect that not less than the
prevailing
| 11 | | rate of wages shall be paid to all laborers, workers, and | 12 | | mechanics performing
work under the contract. It shall also be | 13 | | mandatory upon each subcontractor to
cause to be inserted into | 14 | | each lower tiered subcontract
and into the project | 15 | | specifications for each lower tiered subcontract a
stipulation | 16 | | to the effect that not less
than the prevailing rate of wages | 17 | | shall be paid to all laborers, workers, and
mechanics | 18 | | performing work under the contract. A contractor or | 19 | | subcontractor who
fails to comply with this subsection (b) is | 20 | | in violation of this Act.
| 21 | | (b-1) When a contractor has awarded work to a subcontractor | 22 | | without a contract or contract specification, the contractor | 23 | | shall comply with subsection (b) by providing a subcontractor | 24 | | with a written statement indicating that not less than the | 25 | | prevailing rate of wages shall be paid to all laborers, | 26 | | workers, and mechanics performing work on the project. A |
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| 1 | | contractor or subcontractor who fails to comply with this | 2 | | subsection (b-1) is in violation of this Act. | 3 | | (b-2) Where a complaint is made and the Department of Labor | 4 | | determines that a violation has occurred, the Department of | 5 | | Labor shall determine if proper written notice under this | 6 | | Section 4 was given. If proper written notice was not provided | 7 | | to the subcontractor by the contractor, the Department of Labor | 8 | | shall order the contractor to pay any interest, penalties, or | 9 | | fines that would have been owed by the subcontractor if proper | 10 | | written notice were provided. The failure by a contractor to | 11 | | provide written notice to a subcontractor does not relieve the | 12 | | subcontractor of the duty to comply with the prevailing wage | 13 | | rate, nor of the obligation to pay any back wages, as | 14 | | determined under this Act. For the purposes of this subsection, | 15 | | back wages shall be limited to the difference between the | 16 | | actual amount paid and the prevailing rate of wages required | 17 | | for the project. However, if proper written notice was not | 18 | | provided to the contractor by the public body or other entity | 19 | | under this Section 4, the Department of Labor shall order the | 20 | | public body or other entity to pay any interest, penalties, or | 21 | | fines that would have been owed by the subcontractor if proper | 22 | | written notice were provided. The failure by a public body or | 23 | | other entity to provide written notice does not relieve the | 24 | | subcontractor of the duty to comply with the prevailing wage | 25 | | rate, nor of the obligation to pay any back wages, as | 26 | | determined under this Act. For the purposes of this subsection, |
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| 1 | | back wages shall be limited to the difference between the | 2 | | actual amount paid and the prevailing rate of wages required | 3 | | for the project. The failure to provide written notice by a | 4 | | public body, other entity, or contractor does not diminish the | 5 | | right of a laborer, worker, or mechanic to the prevailing rate | 6 | | of wages as determined under this Act. | 7 | | (c) A public body or other entity shall also require in all | 8 | | contractor's and subcontractor's bonds
that the contractor or | 9 | | subcontractor include such provision as will guarantee the
| 10 | | faithful performance of such prevailing wage clause as provided | 11 | | by
contract or other written instrument. All bid specifications | 12 | | shall list the specified rates to all
laborers, workers and | 13 | | mechanics in the locality for each craft or type of
worker or | 14 | | mechanic needed to execute the contract.
| 15 | | (d) If the Department of Labor
revises the prevailing rate | 16 | | of hourly wages to be paid by the public body or other entity, | 17 | | the
revised rate shall apply to such contract, and the public | 18 | | body or other entity shall be
responsible to notify the | 19 | | contractor and each subcontractor, of the revised
rate.
| 20 | | The public body or other entity shall discharge its duty to | 21 | | notify of the revised rates by inserting a written stipulation | 22 | | in all contracts or other written instruments that states the | 23 | | prevailing rate of wages are revised by the Department of Labor | 24 | | and are available on the Department's official website. This | 25 | | shall be deemed to be proper notification of any rate changes | 26 | | under this subsection. |
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| 1 | | (e) Two or more investigatory hearings under this Section | 2 | | on the issue
of establishing a new prevailing wage | 3 | | classification for a particular craft
or type of worker shall | 4 | | be consolidated in a single hearing before the
Department. Such | 5 | | consolidation shall occur whether each separate investigatory
| 6 | | hearing is conducted by a public body or the Department. The | 7 | | party requesting
a consolidated investigatory hearing shall | 8 | | have the burden of establishing that
there is no existing | 9 | | prevailing wage classification for the particular craft or
type | 10 | | of worker in any of the localities under consideration.
| 11 | | (f) It shall be mandatory upon the contractor or | 12 | | construction manager
to whom a contract for public works is | 13 | | awarded to post, at a
location on the project site of the | 14 | | public works that is
easily accessible to the workers engaged | 15 | | on the project,
the prevailing wage rates for each craft or | 16 | | type of worker
or mechanic needed to execute the contract or | 17 | | project or
work to be performed. In lieu of posting on the | 18 | | project site of the public works, a contractor which has a | 19 | | business location where laborers, workers, and mechanics | 20 | | regularly visit may: (1) post in a conspicuous location at that | 21 | | business the current prevailing wage rates for each county in | 22 | | which the contractor is performing work; or (2) provide such | 23 | | laborer, worker, or mechanic engaged on the public works | 24 | | project a written notice indicating the prevailing wage rates | 25 | | for the public works project. A failure to post or provide a | 26 | | prevailing wage
rate as required by this Section is a violation |
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| 1 | | of this Act.
| 2 | | (Source: P.A. 96-437, eff. 1-1-10; 97-964, eff. 1-1-13.)
| 3 | | (820 ILCS 130/11a) (from Ch. 48, par. 39s-11a)
| 4 | | Sec. 11a. The Director of the Department of Labor shall | 5 | | publish in the
Illinois Register no less often than once each | 6 | | calendar quarter a list of
contractors or subcontractors found | 7 | | to have disregarded their obligations
to employees under this | 8 | | Act. The Department of Labor shall determine the
contractors or | 9 | | subcontractors who, on 2 separate occasions within 5 years, | 10 | | have been
determined to have violated the provisions of this | 11 | | Act. Upon such
determination the Department shall notify the | 12 | | violating
contractor or subcontractor. Such contractor or | 13 | | subcontractor shall then
have 10 working days to request a | 14 | | hearing by the Department on the alleged
violations. Failure to | 15 | | respond within the 10 working day period shall
result in | 16 | | automatic and immediate placement and publication on the list.
| 17 | | If the contractor or subcontractor requests a hearing within | 18 | | the 10 working
day period, the Director shall set a hearing on | 19 | | the alleged violations.
Such hearing shall take place no later | 20 | | than 45 calendar days after the
receipt by the Department of | 21 | | Labor of the request for a hearing.
The Department of Labor is | 22 | | empowered to promulgate, adopt, amend and rescind
rules and | 23 | | regulations to govern the hearing procedure. No contract shall
| 24 | | be awarded to a contractor or subcontractor appearing on the | 25 | | list, or to
any firm, corporation, partnership or association |
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| 1 | | in which such contractor
or subcontractor has an interest until | 2 | | 4 years have elapsed from the date
of publication of the list | 3 | | containing the name of such contractor or
subcontractor. A | 4 | | public body, including a home rule unit, may not use as a basis | 5 | | for denying a contract to a contractor or subcontractor any | 6 | | complaint filed with the Department or any determination by the | 7 | | Department that the contractor or subcontractor has committed a | 8 | | violation under this Act, unless the contractor or | 9 | | subcontractor is debarred at the time of the bid as provided | 10 | | under this Section. This subsection is a limitation under | 11 | | subsection (i) of Section 6 of Article VII of the Illinois | 12 | | Constitution on the concurrent exercise by home rule units of | 13 | | powers and functions exercised by the State. | 14 | | A contractor or subcontractor convicted or found guilty | 15 | | under Section 5 or 6 of this Act shall be subject to an | 16 | | automatic and immediate debarment, thereafter prohibited from | 17 | | participating in any public works project for 4 years, with no | 18 | | right to a hearing.
| 19 | | (Source: P.A. 97-571, eff. 1-1-12.)
| 20 | | Section 99. Effective date. This Act takes effect upon | 21 | | becoming law. |
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