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Public Act 102-1065


 

Public Act 1065 102ND GENERAL ASSEMBLY

  
  
  

 


 
Public Act 102-1065
 
HB4600 EnrolledLRB102 23985 SPS 33190 b

    AN ACT concerning employment.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    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    (d) This Section is repealed December 31, 2023.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
claims in construction industry.
    (a) For all contracts entered into on or after July 1,
2022, a primary contractor making or taking a contract in the
State for the erection, construction, alteration, or repair of
a building, structure, or other private work in the State
where the aggregate costs of the project exceed $20,000 ,
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
contractual relationship with a property owner. "Primary
contractor" may have the same meaning as a "general
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
Section.
    "Private work" means any erection, construction,
alteration, or repair of a building, structure, or other work.
    "Subcontractor" means a contractor that has a contractual
relationship with the primary contractor or with another
subcontractor at any tier, who furnishes any goods or services
in connection with the contract between the primary contractor
and the property owner, but does not include contractors who
solely provide goods and transport of such goods related to
the contract.
    (c) The primary contractor's liability under this Section
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
evade or commit any act that negates the requirements of this
Section. Except as otherwise provided in a contract between
the primary contractor and the subcontractor, the
subcontractor shall indemnify the primary contractor for any
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
subcontractor in accordance with the terms of their
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
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.
(Source: 10200HB5412eng.)
 
    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.

Effective Date: 6/10/2022