Associated Builders and Contractors, Inc. - Illinois Chapter
Your Merit Shop Voice Across Illinois

Capitol News Reports

By Shattuck & Associates Consulting, Inc.

Capitol News Report: September 2018

Governor Finalizes Action on Legislation from Spring Session

Demonstrating again the importance of having checks and balances in our state government, Governor Rauner has acted to help the interests of merit shop contractors.

ABC Issues:

HB 4268 (Thapedi/Mulroe) Contains new language to be added to the home repair consumer rights pamphlet relating to lien waivers informing home owners that they are required to request a signed and notarized written statement from their contractor that lists all persons and companies hired to work on the home and other information, and suppliers and contractors have a right to file a lien against a home if they do not get paid for their labor or materials. Pamphlet language is informational only and not a substantive enforceable provision of the Home Repair and Remodeling Act. ABC NEUTRAL P.A. 100-0670 Effective January 1, 2019

HB 4790 (Sente/Koehler) Requires any State agency undergoing a landscape project requiring the use of new or offsite soil and is located within 10 miles of any IEPA-permitted compost facility must request a base bid with an alternative for compost-amended soil for that project. Requires the State agency to incorporate compost-amended soil into a landscaping project if the cost of using this type of soil is equal or less than the cost of using other new or offsite soil. In 2019, IDOT will conduct 2 pilot demonstration projects using compost-amended soil and report findings of project to the General Assembly. ABC NEUTRAL P.A. 100-0951 Effective January 1, 2019

HB 5201 (Ford/Castro) Creates a mechanics lien demand and referral pilot program. In counties with a code-hearing unit, a recorder may adopt rules establishing a mechanics lien demand and referral process for residential property after a public hearing. If a recorder determines that a mechanics lien recorded in the grantor's index or the grantee's index is an expired lien, the recorder shall serve a Notice of Defective Lien by certified mail to the last known address of the owner. When the lienholder commences a suit or files an answer within 30 days or the lienholder records a release of lien with the county recorder provisions (rather than the mechanics lien is forfeited because no suit or answer is filed), then the demand and referral process is completed for the recorder for that property. A lienholder or property owner may remove the matter to circuit court under specified circumstances and if the matter is not resolved in the circuit court, the recorder may reinstitute the demand and referral process; and provides that the administrative law judge handling the demand and referral proceedings needs to be familiar with the areas of law relating to mechanics liens. ABC NEUTRAL P.A. 100-1061 Effective January 1, 2019

SB 1901 (Weaver/Spain) Requires CDB to provide advance notice published in the procurement bulletin whenever a project requires construction management services is proposed for a State agency. The notice will contain projects and services to be procured. Removes the requirement that the request for proposals be mailed to each prequalified firm. ABC NEUTRAL P.A. 100-0701 Effective August 3, 2018

SB 3031 (Weaver/Cabello) Requires the International Code Council’s International Energy Conservation Code, as adopted by CDB, to apply to certain State facilities beginning on the effective date of the amendatory Act. Amends the Green Buildings Act to remove provisions providing that construction and major renovation projects must achieve the highest level of certification practical within the project budget. Requires new, State-funded building construction and major renovations of existing State-owned facilities to be designed to achieve, at a minimum, the silver certification of the Leadership in Energy and Environmental Design's rating system or an equivalent standard. ABC NEUTRAL P.A. 100-0729 Effective August 3, 2018

SB 3052 (Mulroe/Arroyo) Under the Contractor Prompt Payment Act, allows for a retainage of 10% of the payment to be withheld from a payment under a construction contract prior to the completion of 50% of the contract. After 50% of the contract is completed, the amount of retainage for any subsequent payment cannot exceed 5%. ABC SUPPORT Governor Veto Message


General Business Issues:

SB 904 (Hastings/Hoffman) will allow medical providers to pursue the 1% per month interest penalty on unpaid medical bills in circuit court. In addition, the measure adds language to Section 8.2a Electronic Billing requiring the Illinois Department of Insurance to adopt rules regarding health care providers responsibility "for supplying only those medical records pertaining to the provider's own claims that are minimally necessary under the federal Health Insurance Portability and Accountability Act of 1996". There are a number of changes proposed in this measure that we believe could work against employers’ abilities to control medical costs. ABC OPPOSES Governor Amendatory Veto Message

SB 1737 (Muñoz/Hoffman) makes changes to the workers’ compensation insurance rates overseen by the Illinois Department of Insurance (DOI). Those changes will take Illinois from its current competitive marketplace approach to requiring an insurer/rating organization to file its rates, manuals, rules, etc. with DOI  30 days before their use. DOI would have 30 days from the filing to approve or disapprove the rates. It also, requires a company that intends to deviate from the filing of a licensed rating organization of which it is a member, the company shall provide the Director with supporting information that specifies the basis for the requested deviation and provides justification for the deviation. At renewal, if a rate is greater than 5% more than the rate filed with DOI, a notice of the increase must be provided to the policyholder 30 days prior to renewal. The following additional non-workers’ compensation changes are in this legislation as well:

·       Creates the Short-Term, Limited-Duration Health Insurance Coverage Act;

·       Creates the Domestic Stock Company Division Law in the Insurance Code; and

·       Amends the Domestic Captive Insurance Companies Article of the Insurance Code regarding the authority and restrictions on captive insurers.

ABC NEUTRAL Governor Amendatory Veto Message

HB 4572 (Guzzardi/Castro) amends the Illinois Human Rights Act to redefine "employer" to include any person employing one (currently 15) or more employees within Illinois during 20 or more calendar weeks within the calendar year of or preceding the alleged violation. ABC OPPOSES Governor Veto Message

SB 2999 (Van Pelt/Conyears-Ervin) requires an employer to reimburse an employee for all necessary expenditures or losses incurred by the employee directly related to services performed for the employer. It requires that the expenditure must be within the scope of employment, authorized or required and appropriate documentation is provided. ABC NEUTRAL P.A. 100-1094 Effective January 1, 2019

HB 4743 (Ford/Lightford) amends the Equal Pay Act providing that no employer may discriminate between employees by paying wages to an African-American employee at a rate less than the rate at which the employer pays wages to another employee who is not African-American for the same or substantially similar work on a job that requires equal skill, effort, and responsibility and is performed under similar working conditions. ABC NEUTRAL Governor Amendatory Veto Message

HB 1595 (Stuart/Haine) amends the Nursing Mothers in the Workplace Act provides for reasonable break time (instead of "unpaid break time each day") during the first year after the child's birth each time the employee needs to express milk. The break time may run concurrently with any break time already provided to the employee and an employer may not reduce an employee's compensation for time used for the purpose of expressing milk or nursing a baby. An employer shall provide reasonable break time as needed by the employee unless to do so would create an undue hardship as defined by the Illinois Human Rights Act. P.A. 100-1003 Effective August 21, 2018

Awaiting Action by Governor Rauner

HB 4163 (Moeller/Castro) amends the Equal Pay Act of 2003 prohibiting an employer from inquiring about salary and wage history by adding new standards that limit employer defenses and adding new compensatory and punitive damage penalties on businesses who are not compliant. ABC OPPOSES and is seeking a veto from Gov. Rauner. Sent to the Governor on August 7th. He must act no later than October 6th.

Elisa Fox