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Public Act 102-1065 | ||||
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AN ACT concerning employment.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. If and only if House Bill 5412 of the 102nd | ||||
General Assembly becomes law, then the Department of | ||||
Transportation Law of the
Civil Administrative Code of | ||||
Illinois is amended by adding Section 2705-620 as follows: | ||||
(20 ILCS 2705/2705-620 new) | ||||
Sec. 2705-620. Bond Reform in the Construction Industry | ||||
Task Force. | ||||
(a) There is created the Bond Reform in the Construction | ||||
Industry Task Force consisting of the following members: | ||||
(1) the Governor, or his or her designee; | ||||
(2) the State Treasurer, or his or her designee; | ||||
(3) the Director of Insurance, or his or her designee; | ||||
(4) 2 members appointed by the Speaker of the House of | ||||
Representatives; | ||||
(5) 2 members appointed by the Minority Leader of the | ||||
House of Representatives; | ||||
(6) 2 members appointed by the President of the | ||||
Senate; | ||||
(7) 2 members appointed by the Minority Leader of the | ||||
Senate; and |
(8) 7 members representing the construction industry | ||
appointed by the Governor. | ||
The Department of Transportation shall provide | ||
administrative support to the Task Force. | ||
(b) The Task Force shall study innovative ways to reduce | ||
the cost of insurance in the private and public construction | ||
industry while protecting owners from risk of nonperformance. | ||
The Task Force shall consider options that include, but are | ||
not limited to, owner-financed insurance instead of | ||
contractor-financed insurance and alternative ways to manage | ||
risk other than bonds or other insurance products. | ||
(c) The Task Force shall report its findings and | ||
recommendations to the General Assembly no later than March 1, | ||
2023. | ||
(d) This Section is repealed December 31, 2023. | ||
Section 10. If and only if House Bill 5412 of the 102nd | ||
General Assembly becomes law, then the Illinois Wage Payment | ||
and Collection Act is amended by changing Section 13.5 as | ||
follows: | ||
(820 ILCS 115/13.5) | ||
Sec. 13.5. Primary contractor responsibility for wage
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claims in construction industry. | ||
(a) For all contracts entered into on or after July 1,
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2022, a primary contractor making or taking a contract in the
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State for the erection, construction, alteration, or repair of
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a building, structure, or other private work in the State | ||
where the aggregate costs of the project exceed $20,000 ,
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shall assume, and is liable for, any debt owed to a
claimant | ||
under this Section or to a third party on a wage claimant's | ||
behalf incurred pursuant to this Act by a subcontractor at
any | ||
tier acting under, by, or for the primary contractor for
the | ||
wage claimant's performance of labor included in the
subject | ||
of the contract between the primary contractor and the
owner. | ||
This Section does not apply to work performed by a
contractor | ||
of the federal government, the State, a special district, a | ||
city, a county,
or any political subdivision of the State. | ||
(b) As used in this Section: | ||
"Construction" means building, altering, repairing, | ||
improving, or demolishing any structure or building or making | ||
improvements of any kind to real property. | ||
"Primary contractor" means a contractor that has a direct
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contractual relationship with a property owner. "Primary
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contractor" may have the same meaning as a "general
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contractor", "prime contractor", or "construction manager". A | ||
property owner
who acts as a primary contractor related to the | ||
erection,
construction, alteration, or repair of his or her | ||
primary
residence
shall be exempt from liability under this
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Section. | ||
"Private work" means any erection, construction,
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alteration, or repair of a building, structure, or other work. |
"Subcontractor" means a contractor that has a contractual
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relationship with the primary contractor or with another
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subcontractor at any tier, who furnishes any goods or services
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in connection with the contract between the primary contractor
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and the property owner, but does not include contractors who
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solely provide goods and transport of such goods related to
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the contract. | ||
(c) The primary contractor's liability under this Section
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shall extend only to any unpaid wages or fringe or other | ||
benefit payments or contributions, including interest owed, | ||
penalties assessed by the Department,
and reasonable | ||
attorney's fees, but shall not extend to
liquidated damages. | ||
(d) A primary contractor or any other person shall not
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evade or commit any act that negates the requirements of this
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Section. Except as otherwise provided in a contract between
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the primary contractor and the subcontractor, the
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subcontractor shall indemnify the primary contractor for any
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wages, fringe or other benefit payments or contributions, | ||
damages, interest, penalties, or attorney's fees owed
as a | ||
result of the subcontractor's failure to pay wages or fringe | ||
or other benefit payments or contributions
as provided in this | ||
Section, unless
the subcontractor's failure to pay was due to | ||
the
primary contractor's failure to pay moneys due to the
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subcontractor in accordance with the terms of their
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contractual relationship. | ||
(e) Nothing in this Section shall supersede or modify the |
obligations and liability that any primary contractor, | ||
subcontractor, or property owner may bear as an employer under | ||
this Act or any other applicable law. The obligations and | ||
remedies provided in this Section shall be in addition to any | ||
obligations and remedies otherwise provided by law. Nothing in | ||
this Section shall be construed to impose liability on a | ||
primary contractor for anything other than unpaid wages, | ||
fringe or other benefit payments or contributions, penalties | ||
assessed by the Department, interest owed, and reasonable | ||
attorney's fees. | ||
(f) Claims brought pursuant to this Section shall be done
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so in accordance with Section 11 and 11.5 of this Act. Nothing | ||
in this Section shall be construed to provide a third party | ||
with the right to file a complaint with the Department | ||
alleging violation of this Section. | ||
(g) The following shall be exempt from liability under | ||
this Section: | ||
(1) primary contractors who are parties to a | ||
collective bargaining agreement on the project where the | ||
work is being performed; and | ||
(2) primary contractors making or taking a contract in | ||
the State for the alteration or repair of an existing | ||
single-family dwelling or to a single residential unit in | ||
an existing multi-unit structure. Primary contractors who | ||
are parties to a collective bargaining agreement on the | ||
project where the work is being performed shall be exempt |
from this Section. | ||
(h) Prior to the commencement of any civil action, a | ||
claimant or a representative of a claimant shall provide | ||
written notice to the employer and to the primary contractor | ||
detailing the nature and basis for the claim. Failure of the | ||
employer or the primary contractor to resolve the claim within | ||
10 days after receipt of this notice, or during any agreed upon | ||
period extending this deadline, may result in the filing of a | ||
civil action to enforce the provisions of this Act. | ||
(i) Claims brought pursuant to this Section shall be filed | ||
with the Department of Labor or filed with the circuit court | ||
within 3 years after the wages, final compensation, or wage | ||
supplements were due. This subsection does not apply to any | ||
other claims under this Act or any other applicable law | ||
against a primary contractor, subcontractor, or homeowner as | ||
an employer.
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(Source: 10200HB5412eng.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law or on the date House Bill 5412 of the 102nd | ||
General Assembly takes effect, whichever is later.
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