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| Public Act 102-1065
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| HB4600 Enrolled | LRB102 23985 SPS 33190 b |
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AN ACT concerning employment.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. If and only if House Bill 5412 of the 102nd |
General Assembly becomes law, then the Department of |
Transportation Law of the
Civil Administrative Code of |
Illinois is amended by adding Section 2705-620 as follows:
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(20 ILCS 2705/2705-620 new) |
Sec. 2705-620. Bond Reform in the Construction Industry |
Task Force. |
(a) There is created the Bond Reform in the Construction |
Industry Task Force consisting of the following members: |
(1) the Governor, or his or her designee; |
(2) the State Treasurer, or his or her designee; |
(3) the Director of Insurance, or his or her designee; |
(4) 2 members appointed by the Speaker of the House of |
Representatives; |
(5) 2 members appointed by the Minority Leader of the |
House of Representatives; |
(6) 2 members appointed by the President of the |
Senate; |
(7) 2 members appointed by the Minority Leader of the |
Senate; and |
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(8) 7 members representing the construction industry |
appointed by the Governor. |
The Department of Transportation shall provide |
administrative support to the Task Force. |
(b) The Task Force shall study innovative ways to reduce |
the cost of insurance in the private and public construction |
industry while protecting owners from risk of nonperformance. |
The Task Force shall consider options that include, but are |
not limited to, owner-financed insurance instead of |
contractor-financed insurance and alternative ways to manage |
risk other than bonds or other insurance products. |
(c) The Task Force shall report its findings and |
recommendations to the General Assembly no later than March 1, |
2023. |
(d) This Section is repealed December 31, 2023.
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Section 10. If and only if House Bill 5412 of the 102nd |
General Assembly becomes law, then the Illinois Wage Payment |
and Collection Act is amended by changing Section 13.5 as |
follows:
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(820 ILCS 115/13.5) |
Sec. 13.5. Primary contractor responsibility for wage
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claims in construction industry. |
(a) For all contracts entered into on or after July 1,
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2022, a primary contractor making or taking a contract in the
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State for the erection, construction, alteration, or repair of
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a building, structure, or other private work in the State |
where the aggregate costs of the project exceed $20,000 ,
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shall assume, and is liable for, any debt owed to a
claimant |
under this Section or to a third party on a wage claimant's |
behalf incurred pursuant to this Act by a subcontractor at
any |
tier acting under, by, or for the primary contractor for
the |
wage claimant's performance of labor included in the
subject |
of the contract between the primary contractor and the
owner. |
This Section does not apply to work performed by a
contractor |
of the federal government, the State, a special district, a |
city, a county,
or any political subdivision of the State. |
(b) As used in this Section: |
"Construction" means building, altering, repairing, |
improving, or demolishing any structure or building or making |
improvements of any kind to real property. |
"Primary contractor" means a contractor that has a direct
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contractual relationship with a property owner. "Primary
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contractor" may have the same meaning as a "general
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contractor", "prime contractor", or "construction manager". A |
property owner
who acts as a primary contractor related to the |
erection,
construction, alteration, or repair of his or her |
primary
residence
shall be exempt from liability under this
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Section. |
"Private work" means any erection, construction,
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alteration, or repair of a building, structure, or other work. |
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"Subcontractor" means a contractor that has a contractual
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relationship with the primary contractor or with another
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subcontractor at any tier, who furnishes any goods or services
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in connection with the contract between the primary contractor
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and the property owner, but does not include contractors who
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solely provide goods and transport of such goods related to
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the contract. |
(c) The primary contractor's liability under this Section
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shall extend only to any unpaid wages or fringe or other |
benefit payments or contributions, including interest owed, |
penalties assessed by the Department,
and reasonable |
attorney's fees, but shall not extend to
liquidated damages. |
(d) A primary contractor or any other person shall not
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evade or commit any act that negates the requirements of this
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Section. Except as otherwise provided in a contract between
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the primary contractor and the subcontractor, the
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subcontractor shall indemnify the primary contractor for any
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wages, fringe or other benefit payments or contributions, |
damages, interest, penalties, or attorney's fees owed
as a |
result of the subcontractor's failure to pay wages or fringe |
or other benefit payments or contributions
as provided in this |
Section, unless
the subcontractor's failure to pay was due to |
the
primary contractor's failure to pay moneys due to the
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subcontractor in accordance with the terms of their
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contractual relationship. |
(e) Nothing in this Section shall supersede or modify the |
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obligations and liability that any primary contractor, |
subcontractor, or property owner may bear as an employer under |
this Act or any other applicable law. The obligations and |
remedies provided in this Section shall be in addition to any |
obligations and remedies otherwise provided by law. Nothing in |
this Section shall be construed to impose liability on a |
primary contractor for anything other than unpaid wages, |
fringe or other benefit payments or contributions, penalties |
assessed by the Department, interest owed, and reasonable |
attorney's fees. |
(f) Claims brought pursuant to this Section shall be done
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so in accordance with Section 11 and 11.5 of this Act. Nothing |
in this Section shall be construed to provide a third party |
with the right to file a complaint with the Department |
alleging violation of this Section. |
(g) The following shall be exempt from liability under |
this Section: |
(1) primary contractors who are parties to a |
collective bargaining agreement on the project where the |
work is being performed; and |
(2) primary contractors making or taking a contract in |
the State for the alteration or repair of an existing |
single-family dwelling or to a single residential unit in |
an existing multi-unit structure. Primary contractors who |
are parties to a collective bargaining agreement on the |
project where the work is being performed shall be exempt |
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from this Section. |
(h) Prior to the commencement of any civil action, a |
claimant or a representative of a claimant shall provide |
written notice to the employer and to the primary contractor |
detailing the nature and basis for the claim. Failure of the |
employer or the primary contractor to resolve the claim within |
10 days after receipt of this notice, or during any agreed upon |
period extending this deadline, may result in the filing of a |
civil action to enforce the provisions of this Act. |
(i) Claims brought pursuant to this Section shall be filed |
with the Department of Labor or filed with the circuit court |
within 3 years after the wages, final compensation, or wage |
supplements were due. This subsection does not apply to any |
other claims under this Act or any other applicable law |
against a primary contractor, subcontractor, or homeowner as |
an employer.
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(Source: 10200HB5412eng.)
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Section 99. Effective date. This Act takes effect upon |
becoming law or on the date House Bill 5412 of the 102nd |
General Assembly takes effect, whichever is later.
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