State of Illinois
90th General Assembly
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90_SB1004

      New Act
          Creates  the  Second  Lowest  Bidders'  Protection   Act.
      Provides  that  the  second  lowest  bidder on a public works
      project and any person that entered into a contract with  the
      second  lowest  bidder who suffers damages as a result of the
      rejection of a bid for the public works project  because  the
      successful  bidder  violated  certain labor Acts may bring an
      action for damages against the violator, subject to specified
      restrictions.
                                                     LRB9002522WHdv
                                               LRB9002522WHdv
 1        AN ACT in relation to public works projects.
 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:
 4        Section  1.  Short  title.  This  Act may be cited as the
 5    Second Lowest Bidders' Protection Act.
 6        Section 5.  Cause of action.
 7        (a)  The second lowest bidder on a public works  project,
 8    and  any person, firm, association, trust, partnership, labor
 9    organization, corporation, or other legal  entity  that  has,
10    before  the  letting of the bids on the public works project,
11    entered into a contract with the second  lowest  bidder,  who
12    suffers damage as a proximate result of a competitive bid for
13    a  public  works projects not being accepted by a public body
14    due  to  the  successful  bidder's  knowing   violation,   as
15    evidenced  by an adjudication in a judicial or administrative
16    proceeding of the successful bidder for having  violated  any
17    of  the provisions of the Workers' Compensation Act, Workers'
18    Occupational Diseases Act,  Unemployment  Insurance  Act,  or
19    Prevailing  Wage  Act may bring an action for damages against
20    the person or legal entity that violated that Act.
21        (b)  There is a rebuttable presumption that a  successful
22    bidder   who   has   been   adjudicated   in  a  judicial  or
23    administrative   proceeding   of   violating   the   Workers'
24    Compensation  Act,  Workers'   Occupational   Diseases   Act,
25    Unemployment  Insurance  Act,  or  Prevailing  Wage  Act  was
26    awarded  the  bid  because  the successful bidder was able to
27    lower the bid due to a violation of that Act  occurring  with
28    respect  to  the  contract  for  public  works awarded by the
29    public body.
30        Section 10.  Definitions.  For purposes of this Act:
                            -2-                LRB9002522WHdv
 1        "Public works" means  all  fixed  works  constructed  for
 2    public  use by any public body, other than work done directly
 3    by any public utility company,  whether  or  not  done  under
 4    public  supervision  or  direction,  or paid for wholly or in
 5    part  out  of  public  funds.  "Public  works"  includes  all
 6    projects financed in whole or in part with bonds issued under
 7    the Industrial Project Revenue Bond Act (Article 11, Division
 8    74 of the Illinois Municipal Code), the  Industrial  Building
 9    Revenue  Bond Act, the Illinois Development Finance Authority
10    Act, or  the  Build  Illinois  Bond  Act,  and  all  projects
11    financed  in  whole or in part with loans or other funds made
12    available under the Build Illinois Act.
13        "Construction" means all work on public  works  involving
14    laborers, workers, or mechanics.
15        "Public  body"  means the State or any officer, board, or
16    commission of the  State  or  any  political  subdivision  or
17    department  of  the State, any institution supported in whole
18    or in part by public funds  that  is  authorized  by  law  to
19    construct  public works or to enter into any contract for the
20    construction of public works, and every county, municipality,
21    township, school district, special district, and every  other
22    political subdivision, district, or municipality of the State
23    whether  the political subdivision, municipality, or district
24    operates under a special charter or not.
25        "Second lowest bidder" means the second lowest  qualified
26    bidder  deemed  responsive  by  the  public body awarding the
27    contract for public works.
28        The "second lowest bidder" and  the  "successful  bidder"
29    may  include  any  person, firm, association, corporation, or
30    other legal entity.
31        Section 15.  Costs and attorney's fees.   In  any  action
32    brought  under  this  Act,  the  court  may  award  costs and
33    reasonable attorney's fees, in an amount to be determined  in
                            -3-                LRB9002522WHdv
 1    the court's discretion, to the prevailing party.
 2        Section  20.  Exemption.   A second lowest bidder who has
 3    been adjudicated in a judicial or  administrative  proceeding
 4    of   violating   the   Workers'  Compensation  Act,  Workers'
 5    Occupational Diseases Act,  Unemployment  Insurance  Act,  or
 6    Prevailing Wage Act within one year before filing the bid for
 7    public works, and who has failed to take affirmative steps to
 8    correct  that  violation,  shall  not  have a cause of action
 9    under this Act.
10        Section 25.  Rights not diminished.  This Act  shall  not
11    be construed to diminish any other rights provided by law.
12        Section  30.   Actions against State and local government
13    prohibited.  There shall be no cause of  action  against  the
14    State,  any  unit of local government, or any school district
15    under this Act.
16        Section 35. Limitation of cause of action.   A  cause  of
17    action  for damages under this Act is barred unless commenced
18    within one year after the completion of the  construction  on
19    the  public  works  project  by the successful bidder who has
20    been adjudicated in a judicial or  administrative  proceeding
21    for having violated one of the Acts specified in Section 5.

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