Associated Builders and Contractors, Inc. - Illinois Chapter
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Capitol News Reports

By Shattuck & Associates Consulting, Inc.

Capitol News Report: August 2019

Senate Hearing on HB 2838 Held

A few weeks ago, a subcommittee of the Senate Executive Committee took testimony on HB 2838. HB 2838 is a measure that would cause general contractors to be liable for unpaid wages of subcontractors. The bill passed the House on a 70-1 vote earlier this year. It has been slowed down in the Senate and is now in the Committee on Assignments. It is a top priority of the carpenter unions.

A significant majority of the 45 witnesses that filed against the legislation were ABC members who responded to an ABC legislative alert. Three organizations representing proponents and three organizations representing opponents were allowed to testify. Testimony from opponents was provided by representatives of the Illinois Homebuilders Association, the Illinois Road & Transportation Builders Association and the Illinois Construction Industry Committee.

Sen. Dan McConchie (R-Lake Zurich), a member of the subcommittee) asked excellent questions and made many of the arguments against the legislation provided to him by ABC.

ABC members should contact their Senator to point out the problems that the legislation will cause. For an ABC position paper contact ABC, Illinois.

 

Legislation Approved by Gov. Pritzker

 

HB 834/ PA 101-177: EQUAL PAY ACT-PROHIBITS WAGE & BENEFIT HISTORY INQUIRY

Effective Date: September 29, 2019

Primary Sponsor: Representative Anna Moeller (D)/Senator Cristina Castro (D)

Summary: Amends the Equal Pay Act of 2003. Provides that the exceptions to the equal pay requirement based on sex also apply to the equal pay requirement for African-American employees. Provides that an employer may prohibit a human resources employee, supervisor, or other employee whose job responsibilities require or allow access to other employees’ wage or salary information from disclosing that information without prior written consent from the employee whose information is sought or requested. Provides that specified provisions shall not be construed to prevent an employer or employment agency from: providing information about the wages, benefits, compensation, or salary offered in relation to a position; or engaging in discussions with an applicant for employment about the applicant’s expectations with respect to wage or salary, benefits, and other compensation. Provides that an employer is not in violation of specified provisions when a job applicant voluntarily and without prompting discloses his or her current or prior wage or salary history, including benefits or other compensation, on the condition that the employer does not consider or rely on the voluntary disclosures as a factor in determining whether to offer a job applicant employment, in making an offer of compensation, or in determining future wages, salary, benefits, or other compensation. A wage differential factor that is not based on sex or factor that would constitute unlawful discrimination under the Illinois Human Rights Act must account for the differential (instead of “the entire differential”). ABC OPPOSED… Contact ABC-Illinois for a summary of the new law.

 

HB 1438/PA 101-27 RECREATIONAL MARIJUANA

Effective Date: June 25, 2019-the sale and possession is not effective until January 1,2020

Primary Sponsor: Representative Kelly Cassidy (D)/Senator Heather Steans (D)

Summary: Legalizes the use of and regulates the production and distribution of recreational marijuana to individuals over 21 years of age. For employers, the legislative sponsors worked and negotiated with the Illinois Chamber to provide the strongest workplace protections in the country. The goal of protecting employers with zero tolerance, drug free workplace and drug testing policies is being met. Based on the final language and legislative intent, we are confident that employers will be free to continue to provide for safe workplaces through their reasonable, non-discriminatory employment policies. For more information on the provisions protecting workplace drug policies contact your ABC Illinois office.

 

HB 2652/PA-101-144 PCDB-ENERGY CONSERVATION

Effective Date: July 26, 2019

Primary Sponsor: Representative Michael Halpin (D)/Senator Christopher Belt (D)

Summary: Amends the Energy Efficient Building Act. Removes provisions providing that references to the International Code Council’s International Energy Conservation Code exclude published supplements. Provides that references to the International Code Council’s International Energy Conservation Code include published supplements adopted by the Board.

 

HB 2722/PA 101-65 PUBLIC CONSTRUCTION BONDS

Last Action: Passed Both Houses (May 16, 2019)

Primary Sponsor: Representative Jennifer Gong-Gershowitz (D)/Senator John Mulroe (D)

Summary: Amends the Public Construction Bond Act. Provides for bonds issued under the Act to be used for, among other conditions, the payment of apparatus, fixtures, and machinery used in the completion of a contract. Provides that the terms “material”, “labor”, “apparatus”, “fixtures”, and “machinery” include those rented items that are on the construction site and those rented tools that are used or consumed on the construction site in the performance of the contract on account of which the bond is given.

 

SB 9/PA 101-171 COAL ASH POLLUTION PREVENTION

Effective Date: July 30,2019

Primary Sponsor: Senator Scott M. Bennett (D)/Representative Carol Ammons (D)

Summary: Amends the Environmental Protection Act. Requires a permit for persons conducting any waste-storage, waste-treatment, or waste-disposal operation on CCR surface impoundments. Prohibits persons from performing any specified actions that may cause or tend to cause a violation of the Act. Requires the owner of a CCR surface impoundment to submit to the Agency for approval a closure alternatives analysis. Exempts owners or operators of CCR surface impoundments that have completed closure in accordance with a plan approved by the Agency prior to 12 months after the amendatory Act’s effective date from obtaining a construction permit for the surface impoundment closure. Provides that the owner of a CCR surface impoundment shall post all closure plans, permit applications, and supporting documentation, and any Agency approval of the plans or applications on its publicly available website. Requires the owner or operator of a CCR surface impoundment to pay the following fees: an initial fee of $50,000 for closed CCR surface impoundments or $75,000 for CCR surface impoundments that have not completed closure; and annual fees of 25,000 for each CCR surface impoundment that has not completed closure or $15,000 for each CCR surface impoundment that has completed closure but has not completed post-closure care. Requires any monies forfeited to the State from any performance bond or other security required under the amendatory Act’s provisions to be placed in the Coal Combustion Residual Surface Impoundment Financial Assurance Fund. Allows the Agency to issue RCRA permits exclusively to persons owning or operating a CCR surface impoundment. Requires a permit applicant to make available to the public for inspection all documents submitted by the applicant to the Agency in furtherance of an application, with the exception of trade secrets, at the office of the county board or governing body of the municipality where CCR from the CCR surface impoundment will be permanently disposed. Amends the State Finance Act. Creates the Coal Combustion Residual Surface Impoundment Financial Assurance Fund. Requires owners and operators of CCR surface impoundments to have submitted a closure plan to the Agency by May 1, 2019 and to have completed closure prior to 24 months after the amendatory Act’s effective date in order to be exempt from obtaining a construction permit.

 

SB 534/PA 101-170 CREATES IDOL BUREAU of APPRENTICESHIP PROGRAMS

Effective Date: January 1, 2020

Primary Sponsor: Senator Emil Jones, III (D)/Rep. Emmanuel Chris Welch (D)

Summary: Creates the Bureau on Apprenticeship Programs within the Department of Labor, and provides for the powers and duties of the Bureau. Creates the Advisory Board for Diversity in Active Apprenticeship Programs Approved by the United States Department of Labor. Provides for the appointment of members to the Advisory Board and the powers, duties, and other requirements concerning the Advisory Board and its members. Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Further specifies the allocation of the percentage of specified State contracts to be awarded to minorities, women, and persons with disabilities under the Act. Provides further requirements concerning requests for individual contract exemptions, requests for contract class exemptions, and requests for contract goal waivers. Amends the Criminal Code of 2012. In a Section concerning deception relating to certification of disadvantaged business enterprises, modifies the penalty for specified actions from a Class 2 felony to a Class 1 felony.

 

SB 687/PA 101-8 GRADUATED INCOME TAX RATE

Effective Date: June 5, 2019

Primary Sponsor: Senator Toi Hutchinson (D)/Mike Zalewski ((D)

Summary: Sets graduated income tax rates effective January 2021, if the constitutional amendment authorizing graduated rates is approved by the voters.

 

  • Corporations will be taxed at a rate of 7.99% of the taxpayer's net income.

  • Individuals who do not file a joint return and have net income of $750,000 or less:

    • 4.75% of the portion of the taxpayer's net income that does not exceed $10,000;

    • (B) 4.9% of the portion of the taxpayer's net income that exceeds $10,000 but does not exceed $100,000;

    • (C) 4.95% of the portion of the taxpayer's net income that exceeds $100,000 but does not exceed $250,000;

    • (D) 7.75% of the portion of the taxpayer's net income that exceeds $250,000 but does not exceed $350,000; and

    • (E) 7.85% of the portion of the taxpayer's net income that exceeds $350,000 but does not exceed $750,000;

    • In the case of taxpayers who do not file a joint return and have income over $750,000, 7.99% of all of the taxpayer's net income.

  • For taxpayers who file a joint return and have net income of $1,000,000 or less:

    • (A) 4.75% of the portion of the taxpayer's net income that does not exceed $10,000;

    • (B) 4.9% of the portion of the taxpayer's net income that exceeds $10,000 but does not exceed $100,000;

    • (C) 4.95% of the portion of the taxpayer's net income that exceeds $100,000 but does not exceed $250,000;

    • (D) 7.75% of the portion of the taxpayer's net income that exceeds $250,000 but does not exceed $500,000; and

    • (E) 7.85% of the portion of the taxpayer's net income that exceeds $500,000 but does not exceed $1,000,000;

    • In the case of taxpayers who file a joint return and have a net income of more than $1,000,000, 7.99% of all of the taxpayer's net income.

 

 

SB 689/PA 101-9 TAX ISSUES INCLUDING CONSTRUCTION PTROJECT TAX CREDITS

Effective Date: June 5, 2019

Primary Sponsor: Sen. Toi Hutchinson (D)/Rep. Greg Harris (D)

Summary: changes impacting construction industry:

·        Creates Blue Collar Jobs Act (total credits capped at $20 million per fiscal year)/High Impact Business construction jobs income tax credit,

o   50% of incremental income tax from construction jobs

o   75% of incremental income tax from construction jobs in underserved

·        Enterprise Zone construction jobs income tax credit

o   50% of incremental income tax from construction jobs

o   75% of incremental income tax from construction jobs in underserved areas

·        River Edge Income Tax Credit - capital investment of at least $1,000,000 in a qualified rehabilitation plan

·        amends EDGE to authorize "New Construction EDGE credits" - requires capital investment of at least $10,000,000

·        River Edge construction jobs credit

 

SB 690/PA 101-31 GAMING EXPANSION/OTHER TAX CHANGES

Effective Date: June 28, 2019

Primary Sponsor: Senator Terry Link (D)/Representative Bob Rita (D)

Summary:

·        trade-in sales tax credit for cars and light trucks limited to the first $10,000

·        Data Center construction employment tax credit equal to 20% of the wages

·        Funding of $25 million for the Illinois Public Works Jobs Program Act which establishes a pre-apprenticeship and apprenticeship programs

 

SB 1525 DCFS-APPRENTICESHIP STIPENDS

Last Action: Passed Both Houses (May 31, 2019)

Primary Sponsor: Senator Robert Peters (D)/Representative Yehiel Kalish (D)

Summary: Requires the Department of Children and Family Services, subject to appropriations, to provide eligible youth an apprenticeship stipend to cover those costs associated with entering an apprenticeship, including, but not limited to fees, tuition for classes, work clothes, rain gear, boots, and occupation-specific tools. Provide that the following youth shall be eligible for an apprenticeship stipend: youth for whom the Department has court-ordered legal responsibility; youth who aged out of care at age 18 or older; or youth formerly under care who have been adopted and were the subject of an adoption assistance agreement or who have been placed in private guardianship and were the subject of a subsidized guardianship agreement. Limits the stipend to eligible youth who: (i) are enrolled in an approved apprenticeship training program; (ii) are not a recipient of any other scholarship or fee waiver provided by the Department; and (iii) are under the age of 26. Provides that apprenticeship stipends shall be available to an eligible youth for a maximum of 5 years after the youth enrolls in a qualifying apprenticeship program. Waives the age requirement and 5-year cap on the stipend for applicants who were unable to enroll in a qualifying apprenticeship program because the applicant: (i) was called into active duty with the United States Armed Forces; (ii) was deployed for service in the United States Public Health Service Commissioned Corps; or (iii) volunteered in the Peace Corps or the AmeriCorps. Requires the Department to develop outreach programs to ensure qualifying youths are aware of the availability of the apprenticeship stipends. Effective January 1, 2020.

Elisa Fox