Capitol News Report: December 2018

ABC Membership/Advocacy at the Capitol Needed More than Ever

As the veto session concluded last week, signs of things to come for merit shop contractors from the General Assembly and Governor-Elect JB Pritzker became very evident.

First, as negotiations for a new capital program started coming together, organized labor pushed for all appointments to the Capitol Development Board (CDB) be made by in coming Governor Pritzker. SB 3127, sponsored by Sen. Iris Martinez (D-Chicago) and Rep. Larry Walsh (D-Joliet), short terms ABC member, Steve Orlando whose CDB appointment was not to expire until January of 2020. Such a move in House Amendment 2 is unprecedented. The legislation was approved by the House on a 104-7 vote. It awaits a final vote on the House changes by the Senate when it returns for a lame duck session January 7-9, 2019.

Also, SB 203, sponsored by Sen. Kim Lightford (D-Chicago) and Rep. Will Davis (D-East Hazel Crest) makes significant changes to the Prevailing Wage Act. The legislation was approved by both chambers but a parliamentary move was used by the Senate to be able to bypass Gov. Rauner who vetoed similar legislation in the past. It will be sent to JB Pritzker upon his inauguration.

Below are issues impacting merit shop contractors that in recent years were vetoed by Gov. Rauner or because of a threat of a veto were not approved. We anticipate that these issues will be revived and without education and pushback will quickly become law. That’s why your membership in ABC is so critical at this time. Not only are your dues supporting our advocacy at the state capital, but our legislative alerts, member meetings and newsletters provide you the latest to be engaged.

Required Apprenticeship for Hazardous Material: Creates the Illinois Hazardous Materials Workforce Training Act requiring IEPA to develop by rule a curriculum of approved advanced safety training for workers at high hazard facilities. An owner or operator, when contracting for the performance of construction work at a stationary source, would require its contractors and subcontractors to use a skilled and trained workforce to perform all onsite work within an apprenticeable occupation in the building and construction trades. SB 2480 (2018)

Employee Classification Act: Increase penalties under the Act from $1,000 to $1,500 for the first violation and from $2,000 to $2,500 for each repeat violation within a 5-year period and debars violators from state contracts and are liable for penalties triple the statutory amount if found to be in willful violation. HB 366/HB 582 AM1 (2017)

Clean Construction/Demolition Debris: Require the Pollution Control Board to adopt rules proposed by IEPA allowing subdivision of areas within a permitted clean construction or demolition debris site for specified purposes. SB 1355 (2017)

Roofing Work: Limit the existing rights of a business owner to do roofing work on his/her own property by changing the roofing license exemption to only residential property rather than just property as is current statute. SB 2982 (2016)

State Contract Minimum Wage: Creates the Living Wage Act by creating a minimum wage called the “Living Wage” of $16.36 per hour for new contracts and subcontracts and sets wage to increase annually by the consumer price index. SB 1347 (2017)

Responsible Bidder: Require local government units to adopt the state requirements for a responsible bidder, including apprenticeship, and require contractors and subcontractors to report the hours worked by minorities and females. HB 2493 (2017)

Prevailing Wage Act: Require the prevailing wage to be the rate for similar work performed under collective bargaining agreements in the locality provided that the agreements cover at least 30% of the workers. SB 203 HA2 (2018); HB 2494/SB 1904 (2017); SB 2964 (2016)

An affected person filing an objection with DOL’s published prevailing wage schedule has the burden of establishing such and provide support for the allegation with competent evidence. SB 203 HA2 (2018)

Require the Department of Labor to create an electronic database for payrolls no later than April 1, 2020 (rather than 2019) and investigate and ascertain the prevailing rate of wages for each county and to publish the prevailing wage schedule on its official website no later than July 15 of each year (this date was recently changed to August 15 in statute). SB 203 HA2 (2018)

Creates the Apprenticeship Utilization Act to require projects covered under the Prevailing Wage Act where the estimated cost is in excess of $250,000 all specifications shall require that no less than 15% of the labor hours within each trade be performed by apprentices of that trade. SB 1513 (2017)

Man-Hour Requirement: Requires all construction contracts under the Illinois Procurement Code to have at least 10% of man-hours performing construction services to be performed by individuals who reside in areas of poverty. HB 3744 (2017)

Retainage: Amends the Contractor Prompt Payment Act to allow a retainage of 10% of the payment to be withheld from a payment under a construction contract prior to completion of 50% of the contract. After 50% of the contract is completed, retainage for any subsequent payment may not exceed 5%. SB 3052 (2018)

Amends the Mechanics Lien Act to require all moneys withheld as retainage from payments made to any contractor or subcontractor under any construction contract to be held in a trust for the benefit of the contractors or subcontractors for whom the retainage has been withheld, except any contracts that provide for retainage of 5% or less. SB 1832 (2017)

BE INFORMED, BE INVOLVED, BE ENGAGED…BE AN ABC MEMBER!

Elisa Fox