State of Illinois
90th General Assembly
Legislation

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90_HB1059ham001

                                             LRB9003739NTsbam
 1                    AMENDMENT TO HOUSE BILL 1059
 2        AMENDMENT NO.     .  Amend House Bill 1059, by  replacing
 3    the title with the following:
 4        "AN  ACT  to  amend the Illinois Highway Code by changing
 5    Section 4-103.
 6        WHEREAS, Project Labor Agreements  promote  labor  peace,
 7    stability,  and uninterrupted performance in the construction
 8    of public works; therefore"; and
 9    by replacing everything after the enacting  clause  with  the
10    following:
11        "Section  5.  The  Illinois  Highway  Code  is amended by
12    changing Section 4-103 as follows:
13        (605 ILCS 5/4-103) (from Ch. 121, par. 4-103)
14        Sec. 4-103.  Any contracts that may be entered  into  for
15    the  construction  of  highways shall be let after due public
16    advertisement to the lowest responsible bidder,  or  bidders,
17    upon  terms and conditions to be fixed by the Department, and
18    the Department shall also require the successful  bidder,  or
19    bidders,  to  furnish  good  and  sufficient  bonds to insure
20    proper and prompt completion of such work in accordance  with
21    the  provisions of such contracts, provided that neither this
                            -2-              LRB9003739NTsbam
 1    Section nor  any  other  provision  of  this  Code  shall  be
 2    construed  to  prohibit  a  contract  for the construction of
 3    highways  let  by  the  Department,   or   subject   to   the
 4    Department's  supervision  and  approval,  from requiring the
 5    contractor who is the successful bidder on the  contract  and
 6    its  subcontractors,  as  a condition for performing the work
 7    under the contract, to enter into or  agree  to  observe  the
 8    terms of a project labor agreement establishing the terms and
 9    conditions  of  employment  for  the  laborers, mechanics, or
10    workers performing  the  work  with  the  labor  organization
11    having jurisdiction over the type of work performed.
12        Partial   payments  may  be  made  for  the  work  as  it
13    progresses provided that the Department retains an amount  as
14    required  by  the Standard Specifications for Road and Bridge
15    construction.
16        At the request of the contractor and with the approval of
17    the Department the retainage of the contract may be deposited
18    under  a  trust  agreement   with   an   Illinois   financial
19    institution,  whose  deposits  are  insured  by  an agency or
20    instrumentality   of   the   federal   government,   of   the
21    contractor's choice  and  subject  to  the  approval  of  the
22    Department.
23        The contractor shall receive any interest thereon.
24        Pursuant  to  application  by  the  contractor,  a  trust
25    agreement  by  the  financial  institution and the Department
26    shall contain as a minimum, the following provisions:
27        a.  The amount to be deposited subject to the trust;
28        b.  The terms  and  conditions  of  payment  in  case  of
29    default of the contractor;
30        c.  The   termination   of   the   trust  agreement  upon
31    completion of the contract.
32        The contractor shall be  responsible  for  obtaining  the
33    written consent of the financial institution trustee, and any
34    costs or service fees shall be borne by the contractor.
                            -3-              LRB9003739NTsbam
 1        The  trust  agreement  may,  at  the  discretion  of  the
 2    Department   and  upon  request  of  the  contractor,  become
 3    operative at  the  time  of  the  first  partial  payment  in
 4    accordance with existing statutes and Department procedures.
 5        The  provisions  of  this  Section  shall  apply  to  all
 6    contracts  in  effect on and after the effective date of this
 7    amendatory Act of 1981.
 8    (Source: P.A. 84-1263.)".

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