Capitol News Report: May 2019
The Illinois General Assembly returns this week for the final four weeks of the scheduled Spring Session.
Friday, May 10th is the deadline for bills in the second chamber to be approved by a committee in the second chamber.
While there have been a number of public hearings and legislative task forces working on the fiscal year 2020 budget which must address the growth in spending required for pensions, Medicaid, the over $3 billion deficit and the back bills of nearly $8 billion, a great deal of moving parts must be pulled together before May 31st. The Governor’s proposed budget also includes over $700 million in new funding priorities of:
· $100 million increase for the early childhood block grant;
· $375 million increase in funding for K-12 education;
· $55.2 million in new funding for public universities:
· $170 million in new funding for addiction treatment, child care, developmental disabilities home services, and other community services;
· $2 million in new funding for community-based violence prevention programs; and
· $8 million to Department of Juvenile Justice funding to comply with consent decrees.
What revenue sources will be tapped to address the budget deficit, the outstanding bills, pension funding and increased spending? With the heavy criticism of former Gov. Rauner’s inability to pull together budget deals, Gov. Pritzker and the Democrat super majority are under heavy pressure to have a budget completed on time.
Below is a rundown on Illinois legislation that has advanced to the second chamber of interest to ABC members.
HB 137 PAINTING-BRIDGE/WATER INFRASTRUCTURE (Rep. Hernandez (D)/Sen. Castro (D)) Amends the Environmental Protection Act. Deletes language providing that the Section regarding preservation of community water supplies applies only to projects receiving 100% of their funding from the State. Amends the Illinois Highway Code. Provides that an "eligible bridge" under the Section regarding preservation of bridge infrastructure includes any bridge or overpass that is funded directly by, or provided other assistance through, a municipality, a public-private partnership, the State, the federal government, or some combination thereof (instead of "100% funded by the State"). Scheduled Hearing: Senate Transportation May 7 5pm ABC OPPOSED
HB 834 EQUAL PAY ACT-WAGE HISTORY (Rep. Moeller (D)/Sen. Castro) Amends the Equal Pay Act of 2003. Prohibits an employer from: (i) screening job applicants based on their wage or salary history, (ii) requiring that an applicant's prior wages satisfy minimum or maximum criteria, and (iii) requesting or requiring as a condition of being interviewed or as a condition of continuing to be considered for an offer of employment that an applicant disclose prior wages or salary. Prohibits an employer from seeking the salary, including benefits or other compensation or salary history, of a job applicant from any current or former employer, with some exceptions. Limits defenses. Provides for penalties and injunctive relief. Senate Amendment 1 (not adopted): Replaces everything after the enacting clause. 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. Makes other changes. Effective 60 days after becoming law. Scheduled Hearing: Senate Labor May 8 11am (Senate Amendment 1 assigned to Committee) ABC OPPOSED
HB 1653 ANTI-WAGE THEFT-STATE CONTRACT (Rep. Villanueva (D)/Sen. Martinez (D)) Amends the Illinois Procurement Code. Prohibits any person or business that violates the Illinois Wage Payment and Collection Act, the Minimum Wage Law, the Illinois Worker Adjustment and Retraining Notification Act, the Employee Classification Act, the Day and Temporary Labor Services Act, the Fair Labor Standards Act of 1938, or any comparable state statute or regulation of any state which governs the payment of wages to do business with the State or any State agency or enter into a subcontract that is subject to the Code for a period of 5 years. Amends the Illinois Wage Payment and Collection Act. Provides that an employer that is able to pay wages and who refuses to pay is guilty of a Class 4 felony with respect to amounts of $5,000 or less (rather than a Class B misdemeanor) and of a Class 3 felony with respect to amounts greater than $5,000 (rather than a Class A misdemeanor). Provides that a subsequent failure to pay within 5 years (rather than 2 years) of a prior conviction is a Class 3 felony (rather than a Class 4 felony). House Amendment 1: Provides that specified provisions do not apply to vendors or contracts providing for Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) benefits, Supplemental Nutrition Assistance Program (SNAP) benefits, or Medicaid benefits. Referred to Senate Assignments ABC OPPOSED
HB 2304 DHS-BUILDING TRADES PROGRAM (Rep. Slaughter (D)/Sen. Martinez) Amends the Department of Human Services Act. Requires the Department of Human Services to establish a Youth Training and Education in the Building Trades Program to award grants to community-based organizations for the purpose of establishing training programs for youth with an interest in the building trades. Provides that under the training programs, each youth shall receive: (1) formal training and education in the fundamentals and core competencies in the youth's chosen trade; and (2) hands-on experience in the building trades by participating in community improvement projects involving the rehabilitation of vacant and abandoned residential property. Requires selected organizations to use the grant money to establish an entrepreneurship program to provide eligible youth with the capital and business management skills necessary to launch their own businesses. Contains provisions concerning residential property that is eligible for acquisition under the Program; the selection criteria for community-based organizations; and the Youth Training and Education in the Building Trades Fund. Amends the Illinois Housing Development Act. Requires the Illinois Housing Development Authority to establish a Training Youth in the Building Trades Program that is substantially similar to the Youth Training and Education in the Building Trades Program. Contains provisions concerning residential property that is eligible for acquisition under the Program; the selection criteria for community-based organizations; and the Training Youth in the Building Trades Fund. Amends the State Finance Act to create the Youth Training and Education in the Building Trades Fund and the Training Youth in the Building Trades Fund. Effective January 1, 2020. Scheduled Hearing: Senate Human Services May 7 3pm
HB 2652 CDB-ENERGY CONSERVATION (Rep. Halpin (D)/Sen. Belt (D)) 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. Effective immediately. Senate Second Reading
HB 2722 PUBLIC CONSTRUCTION BONDS (Rep. Gong-Gershowitz (D)/Sen. Mulroe (D)) 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. Makes conforming changes. Senate Second Reading
HB 2838 WAGE PAYMENT-DIRECT CONTRACTOR (Rep. Gong-Gershowitz/Sen. Fine (D)) Amends the Illinois Wage Payment and Collection Act. Provides that, for contracts entered into on or after July 1, 2019, a direct contractor making or taking a contract in the State for the erection, construction, alteration, or repair of a building, structure, or other private work shall assume, and is liable for, any debt owed to a wage claimant or third party on the wage claimant's behalf, incurred by a subcontractor at any tier acting under, by, or for the direct contractor for the wage claimant's performance of labor included in the subject of the contract between the direct contractor and the owner. Provides for enforcement by the Department of Labor. Provides authorization for third parties owed fringe or other benefits or a joint labor-management cooperation committee to bring a civil action to enforce liability against a direct contractor. Provides exemptions for work done by an employee of the State or any political subdivision of the State. Provides requirements and guidelines for notice, awards, filing, and records retention. Provides that the new provisions are severable, and that the obligations and remedies provided are in addition to any obligations and remedies otherwise provided by law. Provides that nothing the Section shall alter specified obligations and penalties set forth in the State Prompt Payment Act. Effective immediately. Referred to Senate Assignments ABC OPPOSED
HJR 35 RESPONSIBLE BIDDER ORDINANCE (Rep. Hoffman (D)) Supports local governments and municipalities that adopt Responsible Bidder Ordinances. Placed on House Calendar Order of Resolutions ABC OPPOSED
SB 1 MINIMUM WAGE INCREASE (Sen. Lightford (D)/Rep. Guzzardi (D)) Amends the Illinois Income Tax Act and the Minimum Wage Law. Provides for an increase in the minimum wage and for a credit against withholding payments in relation to the increase. Increases the minimum wage to $9.25 per hour beginning January 1, 2020. Provides for annual increases in the minimum wage culminating in a minimum wage of $15 per hour beginning on January 1, 2025. Provides to employers with 50 or fewer full-time equivalent employees a credit against tax withheld beginning January 1, 2020. Reduces the credit beginning January 1, 2021. Provides employers may claim the credit amount in effect on January 1, 2025 until December 31, 2026 and that employers with no more than 5 employees may claim that credit until December 31, 2027. Authorizes the Department of Labor to perform random audits of employer to ascertain compliance with the Minimum Wage Law. Authorizes a penalty of $100 per employee for failure to maintain required records. Effective immediately. Public Act . . . 101-0001
SB 104 PROMPT PAYMENT-CONTRACTORS (Sen. Villivalam (D)/Rep. Lilly (D)) Amends the State Prompt Payment Act. Provides that on and after July 1, 2021, "a proper bill or invoice" also includes the names of all subcontractors or subconsultants to be paid from the bill or invoice and the amounts due to each of them, if any. Requires contractors to pay each subcontractor and material supplier, either electronically, within 7 business days after receiving payment, or if paid by a printed check, the printed check must be postmarked within 7 business days after receiving payment. Requires contractors to provide written notice of refusal to pay a subcontractor or material supplier within 7 business days after receiving payment. Provides a penalty for a contractor's failure to provide payment to a subcontractor or material supplier within 7 business days after receiving payment. Provides that on or before July 2021, the Department of Transportation shall publish on its website a searchable database that allows for queries by the name of a subcontractor or the pay item such that each pay item is associated with either the prime contractor or a subcontractor. Makes conforming changes. Senate Amendment 3: Requires the Department of Transportation to publish on its website a searchable database that allows for queries for each active construction contract by the name of a subcontractor or the pay item such that each pay item is associated with either the prime contractor or a subcontractor (currently, queries for each active construction contract not required). Referred to House Rules Committee
SB 1407 HAZARDOUS MATERIALS WORKFORCE (Sen. Hastings (D)) Creates the Illinois Hazardous Materials Workforce Training Act. Provides that the Department of Labor shall develop by rule a curriculum of approved advanced safety training for workers at high hazard facilities. Provides that an owner or operator, when contracting for the performance of construction work at the stationary source, shall require that its contractors and any subcontractors use a skilled and trained workforce to perform all onsite work within an apprenticeable occupation in the building and construction trades. Provides a penalty for violation of the Act. Creates the Illinois Hazardous Materials Workforce Training Fund as a special fund in the State treasury. Makes corresponding changes in the State Finance Act. Effective immediately. Third Reading Deadline Extended to May 10 ABC OPPOSED
SB 1474 COLLECTIVE BARGAINING FREEDOM (Sen. Villivalam/Rep. Yednock (D)) Creates the Collective Bargaining Freedom Act. Provides that employers and labor organizations covered by the National Labor Relations Act may execute and apply agreements requiring membership in a labor organization as a condition of employment to the fullest extent authorized by the National Labor Relations Act. Provides that it is the policy of the State that employers, employees, and their labor organizations are free to bargain collectively. Provides that the authority to enact laws or rules that restrict the use of union security agreements between an employer and a labor organization vests exclusively with the General Assembly. Prohibits local governments from enforcing any such law or rule. Defines terms. Effective immediately. Public Act . . . . 101-0003
SB 1525 DCFS-APPRENTICESHIP STIPENDS (Sen. Peters (D)/Rep. Kalish (D)) Amends the Children and Family Services Act. 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. Senate Amendment 2: Provides that the Department of Children and Family Services shall provide eligible youth an apprenticeship stipend to cover those costs associated with entering and sustaining through completion an apprenticeship (rather than 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. Provides that certain youth may (rather than shall) be eligible for the apprenticeship stipend. Provides that, to receive a stipend, an applicant must be enrolled in an apprenticeship training program approved or recognized by the Illinois Department of Employment Security or an apprenticeship program approved by the United States Department of Labor (rather than an apprenticeship training program approved or recognized by the Illinois Department of Employment Security or a similar federal entity). House Amendment 1: Provides that youth for whom the Department of Children and Family Services has court-ordered legal responsibility, youth who aged out of care at age 18 or older, and youth formerly under care who have been adopted or who have been placed in private guardianship shall receive a tuition and fee waiver to assist them in attending and completing their post-secondary education at any community college, university, or college maintained by the State of Illinois (rather than providing that such youth shall receive a tuition and fee waiver if they are not selected to receive a scholarship or fee waiver under a specified provision of the Children and Family Services Act). Scheduled Hearing: House Human Services May 8 8:30am
SB 1530 UTILITY-HIGH IMPACT BUSINESS (Sen. Harmon (D)/Rep. Hoffman) Amends the Illinois Enterprise Zone Act. Provides that the Department of Commerce and Economic Opportunity is authorized to receive and approve applications for the designation of "High Impact Businesses" in Illinois if the business intends to, among other other potential intentions, establish a new utility-scale solar facility at a designated location in Illinois. Changes references of "Wind Energy Business" to "Renewable Energy Business". Defines "new utility-scale solar facility". Makes conforming changes. Senate Amendment 1: Replaces everything after the enacting clause. Reinserts the provisions of the introduced bill with a technical change. Amends the Prevailing Wage Act. Expands the definition of "public works" to include a utility-scale solar facility. Scheduled Hearing: House Revenue & Finance May 9 8am
SB 1570 GROUND UTILITY DAMAGE PREVENT (Sen. Rezin (R)) Amends the Illinois Underground Utility Facilities Damage Prevention Act. Provides for additional required activities for an excavator who engages in nonemergency excavation or demolition under the Act. Modifies the requirements for an excavator who engages in emergency excavation or demolition under the Act. Provides notice requirements for damaged, dislocated, and exposed underground utility facilities. Provides additional requirements for record of notice and the marking of underground utility facilities. Modifies Sections concerning liability, financial responsibility, negligence, and penalties for violating the provisions of the Act. Repeals a Section concerning preconstruction conferences. Defines, modifies, and repeals terms. Makes certain provisions apply to home rule municipalities with a population over 1,000,000. Makes conforming and technical changes. Senate Amendment 1: Restores a provision specifying that all units of local government, including home rule units that are not municipalities of more than 1,000,000 persons, must comply with the provisions of the Illinois Underground Utility Facilities Damage Prevention Act. Adds a January 1, 2020 effective date. Third Reading Deadline Extended to May 10
SB 1596 WORKERS' COMPENSATION REPOSE (Sen. Sims (D)/Rep. Hoffman) Amends the Worker's Compensation Act and the Workers' Occupational Diseases Act. Provides that specified Sections limiting recovery do not apply to injuries or death resulting from an occupational disease as to which the recovery of compensation benefits under the Act would be precluded due to the operation of any period of repose or repose provision. Provides that, as to any such injury occupational disease, the employee, the employee's heirs, and any person having the standing under law to bring a civil action at law has the nonwaivable right to bring such an action against any employer or employers. Effective immediately. Sent to the Governor
SB 1636 CONTRACT-PROMPT PAY RETAINAGE (Sen. Mulroe/Rep. Arroyo (D)) Amends the Contractor Prompt Payment Act. Provides that a retainage of 10% of the payment may be withheld from a payment under a construction contract prior to the completion of 50% of the contract. Provides that after 50% of the contract is completed, the amount of retainage for any subsequent payment may not exceed 5%. Effective immediately. Assigned to House Executive Committee
SB 1805 DOWNSTATE TRANSPORTATION-DESIGN-BUILD (Sen. Bennett (D)/Rep. Halpin) Amends the Downstate Public Transportation Act. Provides for the authorization of two-phase design-build selection procedures under the Act. Effective immediately. Scheduled Hearing: House State Government Administration Committee May 8 2pm
SB 1914 BUS ENTERPRISE-STATE CONTRACTS (Sen. Hastings/Rep. Meyers-Martin (D)) Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Provides that solicitations (currently, only Non-construction solicitations) that include Business Enterprise Program participation goals shall require bidders and offerors to include utilization plans. Provides that failure to complete and include a completed utilization plan shall render a bid or offer non-responsive. Provides that those who submit bids or proposals for State contracts, whose bids or proposals are successful and include a completed utilization plan but that fail to meet the goals set forth in the solicitation, shall be notified of that deficiency and shall be afforded a period not to exceed 10 calendar days from the date of notification to cure that deficiency in the bid or proposal. Provides that the deficiency in the bid or proposal may only be cured by contracting with additional subcontractors owned by minorities or women subcontractors, or by increasing the work to be performed by previously identified vendors owned by minorities or women subcontractors. Provides that in no case shall an identified subcontractor with a certification be terminated from the contract without the written consent of the State agency or public institution of higher education entering into the contract. Makes conforming and other changes. Senate Amendment 1: Provides that the deficiency in the bid or proposal may only be cured by contracting with additional subcontractors owned by minorities, women, or persons with disabilities (currently, minorities or women subcontractors), or by increasing the work to be performed by previously identified vendors owned by minorities, women, or persons with disabilities (currently, minorities or women subcontractors). Scheduled Hearing: House State Government Administration Committee May 8 2pm
SB 1995 INFRASTRUCTURE DESIGN BUILD (Sen. Sandoval (D)/Rep. Moylan (D)) Creates the Innovations for Transportation Infrastructure Act. Contains a statement of legislative policy. Defines terms. Adds provisions governing: authorization of project delivery methods; preconditions to commencement of procurement; procurement; evaluation and selection of proposals; project records; confidentiality; public disclosure; design-build contracts; construction manager/general contractor contracts; funding and financing; minority, disadvantaged, and women-owned businesses; acquisition of property; federal requirements; powers of the Department of Transportation and the Illinois State Toll Highway Authority; and rulemaking. Makes corresponding changes in the Department of Transportation Law of the Civil Administrative Code of Illinois; Illinois Finance Authority Act; the Illinois Procurement Code; the Public Construction Bond Act; the Employment of Illinois Workers on Public Works Act; the Business Enterprise for Minorities, Women, and Persons with Disabilities Act; the Toll Highway Act; the Eminent Domain Act; and the Prevailing Wage Act. Provides that the provisions of the Act are severable. Effective immediately. Assigned to House Executive Committee
SB 2024 APPRENTICESHIP STUDY ACT (Sen. Gillespie (D)/Rep. Guzzardi) Creates the Apprenticeship Study Act. Creates the Apprenticeship Study. Requires the Department of Labor to conduct a study on the potential expansion of apprenticeship programs in this State and produce a report on its findings. Provides for the contents of the report. Requires the Department of Labor to submit its report with findings and recommendations to the Governor and the General Assembly on or before June 1, 2020. Defines "Illinois Apprenticeship Plus Framework". Provides findings and purpose provisions. Repeals the Act on January 1, 2022. Senate Amendment 1: Replaces everything after the enacting clause. Reinserts the provisions of the introduced bill with changes. Requires the Department of Commerce and Economic Opportunity (currently, the Department of Labor) to conduct a study on the potential expansion of apprenticeship programs in this State and produce a report on its findings. Requires the Department of Commerce and Economic Opportunity (currently, the Department of Labor) to submit its report with findings and recommendations to the Governor and the General Assembly on or before June 1, 2020. House Second Reading
SB 2120 CDB-VARIOUS (Sen. Sims/Rep. Moylan) Amends the Capital Development Board Act. Removes specific references to the Illinois Building Authority and school districts in the definition of State agency. Removes specific references to research on solar energy systems. Provides that members of the Capital Development Board may give bond by inclusion in the blanket bond or bonds or the self-insurance program provided for in the Official Bond Act. Provides that the time for Capital Development Board meetings shall be as prescribed by Capital Development Board rules. Provides that purchases under the Act are subject to the Illinois Procurement Code. Effective January 1, 2020. Scheduled Hearing: State Government Administration Committee May 8 2pm
SB 2122 COMMUNITY COLLEGE-APPRENTICE PROGRAM (Sen. Ellman (D)/Rep. Costa Howard (D)) Amends the Public Community College Act. Provides for legislative findings. Provides that, subject to appropriation, the Illinois Community College Board shall establish a community college apprenticeship grant program to expand opportunities for credit and non-credit education and training leading to high-demand jobs through apprenticeship programs offered in partnership with a community college and a local business or industry. Provides that the grants must be prioritized to expand apprenticeship programs to new populations, develop apprenticeships in new, non-traditional sectors, and identify ways to promote greater inclusion and diversity in apprenticeships. Requires the Illinois Community College Board to adopt rules. Effective immediately. Assigned to House Appropriations-Higher Education Committee
SJRCA 1 GRADUATED INCOME TAX (Sen. Harmon/Rep. Martiwick (D)) Proposes to amend the Revenue Article of the Illinois Constitution. Removes a provision that provides that a tax on income shall be measured at a non-graduated rate. Provides that there may be one tax on the income of individuals and corporations (currently, there may be no more than one income tax imposed on individuals and one income tax imposed on corporations, and the rate of tax imposed upon corporations shall not exceed the rate imposed on individuals by more than a ratio of 8 to 5). Provides that the income tax may be a fair tax where lower rates apply to lower income levels and higher rates apply to higher income levels. Provides that no government other than the State may impose a tax on or measured by income. Effective upon being declared adopted. Senate Amendment 1: Replaces everything after the resolved clause. Proposes to amend the Revenue Article of the Illinois Constitution. Removes a provision that provides that a tax on income shall be measured at a non-graduated rate. Provides that the General Assembly shall provide by law for the rate or rates of any tax on or measured by income imposed by the State. Provides that the highest rate imposed on corporations may not exceed the highest rate imposed on individuals by more than a ratio of 8 to 5. Effective upon being declared adopted. Referred to House Rules Committee ABC OPPOSED
SR 259 BUSINESS DIVERSITY TASK FORCE (Sen. Koehler (D)) Creates the Diversity Task Force on Disadvantaged Business Enterprises (DBEs), Minority Business Enterprises (MBEs) and Women Business Enterprises (WBEs) to identify major issues, remove impediments, and create a fair opportunity for DBEs, MBEs, and WBEs to do business with the State of Illinois, specifically the Illinois Department of Transportation (IDOT), the Illinois Capital Development Board (CDB), and the Illinois Tollway Authority. Resolution Adopted ABC SUPPORTS