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

By Shattuck & Associates Consulting, Inc.

Capitol News Report: September 2019

Governor’s Action Report

All the legislation that ABC, Illinois was engaged in or monitoring have been acted upon by Governor Pritzker. If you have any questions about any of these measures, please contact ABC.

HB 137/PA 101-226 MUNICIPAL WATER & BRIDGE PAINTING

Effective Date: June 1, 2020

Primary Sponsor: Representative Barbara Hernandez (D)/Senator Cristina Castro (D)

Summary: 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”). In a provision that excludes routine maintenance of community water supplies from rules governing certain corrosion prevention projects, provides that routine maintenance activities shall (instead of may) include specified activities. ABC OPPOSED

 

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 2304/PA 101-469 DHS-BUILDING TRADES PROGRAM

Effective Date: January 1, 2020

Primary Sponsor: Representative Justin Slaughter (D)/Senator Iris Martinez (D)

Summary: Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that subject to appropriation, the Department of Commerce and Economic Opportunity may establish a Training in the Building Trades Program (Program) to award grants to community-based organizations for the purpose of establishing training programs for persons who are 18 through 35 years of age and have an interest in the building trades. Provides that persons eligible to participate in the Program shall include youth who have aged out of foster care and have an interest in the building trades. Provides that under the training programs, participating persons shall receive: (i) formal training and education in the fundamentals and core competencies in the person's chosen trade; and (ii) hands-on experience to further develop the person's building trade skills by participating in community improvement projects involving the rehabilitation of vacant and abandoned residential property in economically depressed areas of the State. Requires selected organizations to also use the grant money to establish an entrepreneurship program to provide eligible persons with the capital and business management skills necessary to successfully launch their own businesses as contractors, subcontractors, real estate agents, or property managers or as any other entrepreneurs in the building trades. Contains provisions concerning residential property that is eligible for acquisition and rehabilitation under the Program; the selection criteria for community-based organizations; and the Training in the Building Trades Fund. Amends the State Finance Act to create the Training in the Building Trades Fund.

 

HB 2460/PA 101-473 SUSTAINABILITY INVESTING ACT

Effective Date: Passed Both Houses (May 29, 2019)

Primary Sponsor: Representative William Davis (D)/Senator Iris Martinez (D)

Summary: Creates the Illinois Sustainable Investing Act. Provides that any public agency or governmental unit shall develop, publish, and implement sustainable investment policies applicable to the management of all public funds under its control. Provides that the sustainable investment policy may be incorporated in existing investment policies developed, published, and implemented by a public agency or governmental unit. Provides that the sustainable investment policy shall include material, relevant, and decision-useful sustainability factors to be applied by the public agency or governmental unit in evaluating investment decisions. Provides that a public agency shall prudently integrate sustainability factors into its investment decision-making, investment analysis, portfolio construction, due diligence, and investment ownership in order to maximize anticipated financial returns, minimize projected risk, and more effectively execute its fiduciary duty. Specifies sustainability factors, and the ways in which such factors may be analyzed. Amends the Deposit of State Moneys Act, the Public Funds Investment Act, and the Illinois Pension Code to make changes concerning investment policy and the Illinois Sustainable Investing Act. Provides findings and purpose provisions. Provides that the sustainable investment policy developed under the Illinois Sustainable Investing Act shall include material, relevant, and decision-useful sustainability factors to be considered by the public agency or governmental unit as one component of its overall evaluation of investment decisions. Provides that nothing in the Act prohibits a public agency or governmental unit from integrating additional factors into its investment decision-making, investment analysis, portfolio construction, due diligence, and investment ownership of public funds. Provides that the Act shall not apply to bank time deposits or bank processing services. Provides that sustainability factors include, among other factors, human capital factors that recognize that the workforce is an important asset to delivering long-term value, including factors such as labor practices, responsible contractor and responsible bidder policies, employee health and safety, employee engagement, diversity and inclusion, and incentives and compensation. Provides that any public agency or governmental unit should develop, publish, and implement sustainable investment policies applicable to the management of all public funds under its control. Provides that the sustainable investment policy should include material, relevant, and decision-useful sustainability factors to be considered by the public agency or governmental unit as one component of its overall evaluation of investment decisions, which may include specified items. Makes other changes concerning specified investment policies. Defines “financial institution”.

 

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 104/PA 101-524 PROMPT PAYMENT-CONTRACTORS

Effective Date: January 1, 2020

Primary Sponsor: Senator Ram Villivalam (D)/Representative Camille Lilly (D)

Summary: 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. When a contractor receives any payment, the contractor shall pay each subcontractor and material supplier electronically within 10 business days or 15 calendar days, whichever occurs earlier, or, if paid by a printed check, the printed check must be postmarked within 10 business days or 15 calendar days, whichever occurs earlier 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 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

 

 

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/PA 101-558 DCFS-APPRENTICESHIP STIPENDS

Effective Date: January 1, 2020

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.

 

SB 1636/PA 101-432 CONTRACT PROMPT PAY RETAINAGE

Effective Date: August 20, 2019

Primary Sponsor: Senator John G. Mulroe (D)/Representative Luis Arroyo (D)

Summary: 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%.

 

SB 2024/ PA 101-364 APPRENTICESHIP STUDY ACT

Effective Date: January 1, 2020

Primary Sponsor: Senator Ann Gillespie (D)/Representative Will Guzzardi (D)

Summary: Requires the Department of Commerce and Economic Opportunity 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 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 1/1, 2022.

 

SB 2120/PA 101-369 CDB-VARIOUS

Effective Date: December 15, 2019

Primary Sponsor: Senator Elgie R. Sims, Jr. (D)/Representative Martin Moylan (D)

Summary: 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. Amends the Illinois Procurement Code. Strikes a provision requiring the Capital Development Board to submit a quarterly report to the Procurement Policy Board with information on the general scope, project budget, and established Business Enterprise Program goals for any single prime procurement bid in the previous 3 months with a total construction cost valued at $10,000,000 or less. Strikes an inoperative provision specifying requirements for the Capital Development Board and the Procurement Policy Board concerning single prime projects. Modifies repeal and inoperative dates.

 

SB 2146/PA 101-576 CLEAN WATER WORKFORCE PIPELINE GRANT PROGRAM

Effective Date: January 1, 2020

Primary Sponsors: Senator Ram Villivalam (D)/Representative Justin Slaughter (D)

Summary: Creates within the Department of Commerce and Economic Opportunity a Clean Water Workforce Pipeline Program to provide grants and other financial assistance to prepare and support individuals for careers in water infrastructure. Grants may be made, among other entities, to "multi-craft labor organization" which includes a labor-management apprenticeship program that is registered with and approved by a labor organization that has an accredited training program through the Higher Learning Commission or the Illinois Community College Board. Directs the Department to coordinate with the Environmental Protection Agency, Illinois Finance Authority, and other State agencies that provide financial support for water infrastructure projects. Grant recipients or others receiving financial assistance under the Program shall report annually to the Department.

 

An annual goal of the Program is to train and place at least 300, or 25% of the number of annual jobs created by State financed water infrastructure projects, whichever is greater, specified persons in water sector-related apprenticeships annually. The Environmental Protection Agency, the Illinois Finance Authority, and other State agencies that provide financial support for water infrastructure projects shall support the Program in attaining the goal of employing specified individuals. Provides that the Water Workforce Development Fund shall receive moneys from the Build Illinois Bond, the Capital Development Fund, the General Revenue Fund, and any other funds.

Elisa Fox