Bill Text: IL HB5759 | 2015-2016 | 99th General Assembly | Introduced


Bill Title: Amends the Prevailing Wage Act. Provides that a public body shall specify in the call for bids that each bidder be a responsible bidder. Requires contractors and subcontractors to report the hours worked by minorities and females. Requires the Department of Transportation, the Capital Development Board, and the Illinois State Toll Highway Authority report that information to the General Assembly.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2016-04-08 - Rule 19(a) / Re-referred to Rules Committee [HB5759 Detail]

Download: Illinois-2015-HB5759-Introduced.html


99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB5759

Introduced , by Rep. Jay Hoffman

SYNOPSIS AS INTRODUCED:
820 ILCS 130/2 from Ch. 48, par. 39s-2
820 ILCS 130/4 from Ch. 48, par. 39s-4
820 ILCS 130/5 from Ch. 48, par. 39s-5

Amends the Prevailing Wage Act. Provides that a public body shall specify in the call for bids that each bidder be a responsible bidder. Requires contractors and subcontractors to report the hours worked by minorities and females. Requires the Department of Transportation, the Capital Development Board, and the Illinois State Toll Highway Authority report that information to the General Assembly.
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A BILL FOR

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1 AN ACT concerning employment.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Prevailing Wage Act is amended by changing
5Sections 2, 4, and 5 as follows:
6 (820 ILCS 130/2) (from Ch. 48, par. 39s-2)
7 Sec. 2. This Act applies to the wages of laborers,
8mechanics and other workers employed in any public works, as
9hereinafter defined, by any public body and to anyone under
10contracts for public works. This includes any maintenance,
11repair, assembly, or disassembly work performed on equipment
12whether owned, leased, or rented.
13 As used in this Act, unless the context indicates
14otherwise:
15 "Public works" means all fixed works constructed or
16demolished by any public body, or paid for wholly or in part
17out of public funds. "Public works" as defined herein includes
18all projects financed in whole or in part with bonds, grants,
19loans, or other funds made available by or through the State or
20any of its political subdivisions, including but not limited
21to: bonds issued under the Industrial Project Revenue Bond Act
22(Article 11, Division 74 of the Illinois Municipal Code), the
23Industrial Building Revenue Bond Act, the Illinois Finance

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1Authority Act, the Illinois Sports Facilities Authority Act, or
2the Build Illinois Bond Act; loans or other funds made
3available pursuant to the Build Illinois Act; loans or other
4funds made available pursuant to the Riverfront Development
5Fund under Section 10-15 of the River Edge Redevelopment Zone
6Act; or funds from the Fund for Illinois' Future under Section
76z-47 of the State Finance Act, funds for school construction
8under Section 5 of the General Obligation Bond Act, funds
9authorized under Section 3 of the School Construction Bond Act,
10funds for school infrastructure under Section 6z-45 of the
11State Finance Act, and funds for transportation purposes under
12Section 4 of the General Obligation Bond Act. "Public works"
13also includes (i) all projects financed in whole or in part
14with funds from the Department of Commerce and Economic
15Opportunity under the Illinois Renewable Fuels Development
16Program Act for which there is no project labor agreement; (ii)
17all work performed pursuant to a public private agreement under
18the Public Private Agreements for the Illiana Expressway Act or
19the Public-Private Agreements for the South Suburban Airport
20Act; and (iii) all projects undertaken under a public-private
21agreement under the Public-Private Partnerships for
22Transportation Act. "Public works" also includes all projects
23at leased facility property used for airport purposes under
24Section 35 of the Local Government Facility Lease Act. "Public
25works" also includes the construction of a new wind power
26facility by a business designated as a High Impact Business

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1under Section 5.5(a)(3)(E) of the Illinois Enterprise Zone Act.
2"Public works" does not include work done directly by any
3public utility company, whether or not done under public
4supervision or direction, or paid for wholly or in part out of
5public funds. "Public works" also includes any corrective
6action performed pursuant to Title XVI of the Environmental
7Protection Act for which payment from the Underground Storage
8Tank Fund is requested. "Public works" does not include
9projects undertaken by the owner at an owner-occupied
10single-family residence or at an owner-occupied unit of a
11multi-family residence. "Public works" does not include work
12performed for soil and water conservation purposes on
13agricultural lands, whether or not done under public
14supervision or paid for wholly or in part out of public funds,
15done directly by an owner or person who has legal control of
16those lands.
17 "Construction" means all work on public works involving
18laborers, workers or mechanics. This includes any maintenance,
19repair, assembly, or disassembly work performed on equipment
20whether owned, leased, or rented.
21 "Locality" means the county where the physical work upon
22public works is performed, except (1) that if there is not
23available in the county a sufficient number of competent
24skilled laborers, workers and mechanics to construct the public
25works efficiently and properly, "locality" includes any other
26county nearest the one in which the work or construction is to

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1be performed and from which such persons may be obtained in
2sufficient numbers to perform the work and (2) that, with
3respect to contracts for highway work with the Department of
4Transportation of this State, "locality" may at the discretion
5of the Secretary of the Department of Transportation be
6construed to include two or more adjacent counties from which
7workers may be accessible for work on such construction.
8 "Public body" means the State or any officer, board or
9commission of the State or any political subdivision or
10department thereof, or any institution supported in whole or in
11part by public funds, and includes every county, city, town,
12village, township, school district, irrigation, utility,
13reclamation improvement or other district and every other
14political subdivision, district or municipality of the state
15whether such political subdivision, municipality or district
16operates under a special charter or not.
17 The terms "general prevailing rate of hourly wages",
18"general prevailing rate of wages" or "prevailing rate of
19wages" when used in this Act mean the hourly cash wages plus
20annualized fringe benefits for training and apprenticeship
21programs approved by the U.S. Department of Labor, Bureau of
22Apprenticeship and Training, health and welfare, insurance,
23vacations and pensions paid generally, in the locality in which
24the work is being performed, to employees engaged in work of a
25similar character on public works.
26 "Responsible bidder" means those individuals or firms

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1meeting the requirements of Section 30-22 of the Illinois
2Procurement Code.
3(Source: P.A. 97-502, eff. 8-23-11; 98-109, eff. 7-25-13;
498-482, eff. 1-1-14; 98-740, eff. 7-16-14; 98-756, eff.
57-16-14.)
6 (820 ILCS 130/4) (from Ch. 48, par. 39s-4)
7 Sec. 4. Ascertaining prevailing wage.
8 (a) The public body awarding any contract for public work
9or otherwise undertaking any public works, shall ascertain the
10general prevailing rate of hourly wages in the locality in
11which the work is to be performed, for each craft or type of
12worker or mechanic needed to execute the contract, and where
13the public body performs the work without letting a contract
14therefor, shall ascertain the prevailing rate of wages on a per
15hour basis in the locality, and such public body shall specify
16in the resolution or ordinance and in the call for bids for the
17contract, that the general prevailing rate of wages in the
18locality for each craft or type of worker or mechanic needed to
19execute the contract or perform such work, also the general
20prevailing rate for legal holiday and overtime work, as
21ascertained by the public body or by the Department of Labor
22shall be paid for each craft or type of worker needed to
23execute the contract or to perform such work, and it shall be
24mandatory upon the contractor to whom the contract is awarded
25and upon any subcontractor under him, and where the public body

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1performs the work, upon the public body, to pay not less than
2the specified rates to all laborers, workers and mechanics
3employed by them in the execution of the contract or such work;
4provided, however, that if the public body desires that the
5Department of Labor ascertain the prevailing rate of wages, it
6shall notify the Department of Labor to ascertain the general
7prevailing rate of hourly wages for work under contract, or for
8work performed by a public body without letting a contract as
9required in the locality in which the work is to be performed,
10for each craft or type of worker or mechanic needed to execute
11the contract or project or work to be performed. Upon such
12notification the Department of Labor shall ascertain such
13general prevailing rate of wages, and certify the prevailing
14wage to such public body.
15 (a-0.5) To effectuate the purpose and policy of this Act, a
16public body awarding a contract for public work or otherwise
17undertaking any public works shall specify in the call for bids
18and shall require that each bidder be a responsible bidder.
19 (a-1) The public body or other entity awarding the contract
20shall cause to be inserted in the project specifications and
21the contract a stipulation to the effect that not less than the
22prevailing rate of wages as found by the public body or
23Department of Labor or determined by the court on review shall
24be paid to all laborers, workers and mechanics performing work
25under the contract.
26 (a-2) When a public body or other entity covered by this

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1Act has awarded work to a contractor without a public bid,
2contract or project specification, such public body or other
3entity shall comply with subsection (a-1) by providing the
4contractor with written notice on the purchase order related to
5the work to be done or on a separate document indicating that
6not less than the prevailing rate of wages as found by the
7public body or Department of Labor or determined by the court
8on review shall be paid to all laborers, workers, and mechanics
9performing work on the project.
10 (a-3) Where a complaint is made and the Department of Labor
11determines that a violation occurred, the Department of Labor
12shall determine if proper written notice under this Section 4
13was given. If proper written notice was not provided to the
14contractor by the public body or other entity, the Department
15of Labor shall order the public body or other entity to pay any
16interest, penalties or fines that would have been owed by the
17contractor if proper written notice were provided. The failure
18by a public body or other entity to provide written notice does
19not relieve the contractor of the duty to comply with the
20prevailing wage rate, nor of the obligation to pay any back
21wages, as determined under this Act. For the purposes of this
22subsection, back wages shall be limited to the difference
23between the actual amount paid and the prevailing rate of wages
24required to be paid for the project. The failure of a public
25body or other entity to provide written notice under this
26Section 4 does not diminish the right of a laborer, worker, or

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1mechanic to the prevailing rate of wages as determined under
2this Act.
3 (b) It shall also be mandatory upon the contractor to whom
4the contract is awarded to insert into each subcontract and
5into the project specifications for each subcontract a written
6stipulation to the effect that not less than the prevailing
7rate of wages shall be paid to all laborers, workers, and
8mechanics performing work under the contract. It shall also be
9mandatory upon each subcontractor to cause to be inserted into
10each lower tiered subcontract and into the project
11specifications for each lower tiered subcontract a stipulation
12to the effect that not less than the prevailing rate of wages
13shall be paid to all laborers, workers, and mechanics
14performing work under the contract. A contractor or
15subcontractor who fails to comply with this subsection (b) is
16in violation of this Act.
17 (b-1) When a contractor has awarded work to a subcontractor
18without a contract or contract specification, the contractor
19shall comply with subsection (b) by providing a subcontractor
20with a written statement indicating that not less than the
21prevailing rate of wages shall be paid to all laborers,
22workers, and mechanics performing work on the project. A
23contractor or subcontractor who fails to comply with this
24subsection (b-1) is in violation of this Act.
25 (b-2) Where a complaint is made and the Department of Labor
26determines that a violation has occurred, the Department of

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1Labor shall determine if proper written notice under this
2Section 4 was given. If proper written notice was not provided
3to the subcontractor by the contractor, the Department of Labor
4shall order the contractor to pay any interest, penalties, or
5fines that would have been owed by the subcontractor if proper
6written notice were provided. The failure by a contractor to
7provide written notice to a subcontractor does not relieve the
8subcontractor of the duty to comply with the prevailing wage
9rate, nor of the obligation to pay any back wages, as
10determined under this Act. For the purposes of this subsection,
11back wages shall be limited to the difference between the
12actual amount paid and the prevailing rate of wages required
13for the project. However, if proper written notice was not
14provided to the contractor by the public body or other entity
15under this Section 4, the Department of Labor shall order the
16public body or other entity to pay any interest, penalties, or
17fines that would have been owed by the subcontractor if proper
18written notice were provided. The failure by a public body or
19other entity to provide written notice does not relieve the
20subcontractor of the duty to comply with the prevailing wage
21rate, nor of the obligation to pay any back wages, as
22determined under this Act. For the purposes of this subsection,
23back wages shall be limited to the difference between the
24actual amount paid and the prevailing rate of wages required
25for the project. The failure to provide written notice by a
26public body, other entity, or contractor does not diminish the

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1right of a laborer, worker, or mechanic to the prevailing rate
2of wages as determined under this Act.
3 (c) A public body or other entity shall also require in all
4contractor's and subcontractor's bonds that the contractor or
5subcontractor include such provision as will guarantee the
6faithful performance of such prevailing wage clause as provided
7by contract or other written instrument. All bid specifications
8shall list the specified rates to all laborers, workers and
9mechanics in the locality for each craft or type of worker or
10mechanic needed to execute the contract.
11 (d) If the Department of Labor revises the prevailing rate
12of hourly wages to be paid by the public body or other entity,
13the revised rate shall apply to such contract, and the public
14body or other entity shall be responsible to notify the
15contractor and each subcontractor, of the revised rate.
16 The public body or other entity shall discharge its duty to
17notify of the revised rates by inserting a written stipulation
18in all contracts or other written instruments that states the
19prevailing rate of wages are revised by the Department of Labor
20and are available on the Department's official website. This
21shall be deemed to be proper notification of any rate changes
22under this subsection.
23 (e) Two or more investigatory hearings under this Section
24on the issue of establishing a new prevailing wage
25classification for a particular craft or type of worker shall
26be consolidated in a single hearing before the Department. Such

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1consolidation shall occur whether each separate investigatory
2hearing is conducted by a public body or the Department. The
3party requesting a consolidated investigatory hearing shall
4have the burden of establishing that there is no existing
5prevailing wage classification for the particular craft or type
6of worker in any of the localities under consideration.
7 (f) It shall be mandatory upon the contractor or
8construction manager to whom a contract for public works is
9awarded to post, at a location on the project site of the
10public works that is easily accessible to the workers engaged
11on the project, the prevailing wage rates for each craft or
12type of worker or mechanic needed to execute the contract or
13project or work to be performed. In lieu of posting on the
14project site of the public works, a contractor which has a
15business location where laborers, workers, and mechanics
16regularly visit may: (1) post in a conspicuous location at that
17business the current prevailing wage rates for each county in
18which the contractor is performing work; or (2) provide such
19laborer, worker, or mechanic engaged on the public works
20project a written notice indicating the prevailing wage rates
21for the public works project. A failure to post or provide a
22prevailing wage rate as required by this Section is a violation
23of this Act.
24(Source: P.A. 96-437, eff. 1-1-10; 97-964, eff. 1-1-13.)
25 (820 ILCS 130/5) (from Ch. 48, par. 39s-5)

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1 Sec. 5. Certified payroll.
2 (a) Any contractor and each subcontractor who participates
3in public works shall:
4 (1) make and keep, for a period of not less than 3
5 years from the date of the last payment made before January
6 1, 2014 (the effective date of Public Act 98-328) and for a
7 period of 5 years from the date of the last payment made on
8 or after January 1, 2014 (the effective date of Public Act
9 98-328) on a contract or subcontract for public works,
10 records of all laborers, mechanics, and other workers
11 employed by them on the project; the records shall include
12 (i) the worker's name, (ii) the worker's address, (iii) the
13 worker's telephone number when available, (iv) the
14 worker's social security number, (v) the worker's
15 classification or classifications, (vi) the worker's gross
16 and net wages paid in each pay period, (vii) the worker's
17 number of hours worked each day, (viii) the worker's
18 starting and ending times of work each day, (ix) the
19 worker's hourly wage rate, (x) the worker's hourly overtime
20 wage rate, (xi) the worker's hourly fringe benefit rates,
21 (xii) the name and address of each fringe benefit fund,
22 (xiii) the plan sponsor of each fringe benefit, if
23 applicable, and (xiv) the plan administrator of each fringe
24 benefit, if applicable; and
25 (2) no later than the 15th day of each calendar month
26 file a certified payroll for the immediately preceding

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1 month with the public body in charge of the project. A
2 certified payroll must be filed for only those calendar
3 months during which construction on a public works project
4 has occurred. The certified payroll shall consist of a
5 complete copy of the records identified in paragraph (1) of
6 this subsection (a), but may exclude the starting and
7 ending times of work each day. The certified payroll shall
8 be accompanied by a statement signed by the contractor or
9 subcontractor or an officer, employee, or agent of the
10 contractor or subcontractor which avers that: (i) he or she
11 has examined the certified payroll records required to be
12 submitted by the Act and such records are true and
13 accurate; (ii) the hourly rate paid to each worker is not
14 less than the general prevailing rate of hourly wages
15 required by this Act; and (iii) the contractor or
16 subcontractor is aware that filing a certified payroll that
17 he or she knows to be false is a Class A misdemeanor. A
18 general contractor is not prohibited from relying on the
19 certification of a lower tier subcontractor, provided the
20 general contractor does not knowingly rely upon a
21 subcontractor's false certification. Any contractor or
22 subcontractor subject to this Act and any officer,
23 employee, or agent of such contractor or subcontractor
24 whose duty as such officer, employee, or agent it is to
25 file such certified payroll who willfully fails to file
26 such a certified payroll on or before the date such

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1 certified payroll is required by this paragraph to be filed
2 and any person who willfully files a false certified
3 payroll that is false as to any material fact is in
4 violation of this Act and guilty of a Class A misdemeanor.
5 The public body in charge of the project shall keep the
6 records submitted in accordance with this paragraph (2) of
7 subsection (a) before January 1, 2014 (the effective date
8 of Public Act 98-328) for a period of not less than 3
9 years, and the records submitted in accordance with this
10 paragraph (2) of subsection (a) on or after January 1, 2014
11 (the effective date of Public Act 98-328) for a period of 5
12 years, from the date of the last payment for work on a
13 contract or subcontract for public works. The records
14 submitted in accordance with this paragraph (2) of
15 subsection (a) shall be considered public records, except
16 an employee's address, telephone number, and social
17 security number, and made available in accordance with the
18 Freedom of Information Act. The public body shall accept
19 any reasonable submissions by the contractor that meet the
20 requirements of this Section; and .
21 (3) identify and report to the public body in charge of
22 the project the number of hours worked by minorities and
23 females, as defined in the Business Enterprise for
24 Minorities, Females, and Persons with Disabilities Act,
25 for each craft or type of worker or mechanic needed to
26 execute the contract. Each contractor and subcontractor

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1 shall provide this information on a certified payroll
2 report, or on a monthly manpower utilization report.
3 A contractor, subcontractor, or public body may retain
4records required under this Section in paper or electronic
5format.
6 (b) Upon 7 business days' notice, the contractor and each
7subcontractor shall make available for inspection and copying
8at a location within this State during reasonable hours, the
9records identified in paragraph (1) of subsection (a) of this
10Section to the public body in charge of the project, its
11officers and agents, the Director of Labor and his deputies and
12agents, and to federal, State, or local law enforcement
13agencies and prosecutors.
14 (c) A contractor or subcontractor who remits contributions
15to fringe benefit funds that are jointly maintained and jointly
16governed by one or more employers and one or more labor
17organizations in accordance with the federal Labor Management
18Relations Act shall make and keep certified payroll records
19that include the information required under items (i) through
20(viii) of paragraph (1) of subsection (a) only. However, the
21information required under items (ix) through (xiv) of
22paragraph (1) of subsection (a) shall be required for any
23contractor or subcontractor who remits contributions to a
24fringe benefit fund that is not jointly maintained and jointly
25governed by one or more employers and one or more labor
26organizations in accordance with the federal Labor Management

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1Relations Act.
2 (d) No later than October 1 of each year, the following
3State agencies shall submit a report to the General Assembly
4compiling the total number of hours worked during the
5immediately preceding fiscal year by minorities and females as
6reported in accordance with subsection (a): the Illinois
7Capital Development Board, Illinois Department of
8Transportation, and Illinois State Toll Highway Authority.
9This report shall be filed as provided in Section 3.1 of the
10General Assembly Organization Act.
11(Source: P.A. 97-571, eff. 1-1-12; 98-328, eff. 1-1-14; 98-482,
12eff. 1-1-14; 98-756, eff. 7-16-14.)
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