Illinois General Assembly - Full Text of SB1904
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Full Text of SB1904  100th General Assembly

SB1904ham001 100TH GENERAL ASSEMBLY

Rep. Jay Hoffman

Filed: 5/28/2017

 

 


 

 


 
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AMENDMENT TO SENATE BILL 1904

2    AMENDMENT NO. ______. Amend Senate Bill 1904 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Prevailing Wage Act is amended by changing
5Sections 2, 4, 7, 9, and 10 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

 

 

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1out of public funds. "Public works" as defined herein includes
2all projects financed in whole or in part with bonds, grants,
3loans, or other funds made available by or through the State or
4any of its political subdivisions, including but not limited
5to: bonds issued under the Industrial Project Revenue Bond Act
6(Article 11, Division 74 of the Illinois Municipal Code), the
7Industrial Building Revenue Bond Act, the Illinois Finance
8Authority Act, the Illinois Sports Facilities Authority Act, or
9the Build Illinois Bond Act; loans or other funds made
10available pursuant to the Build Illinois Act; loans or other
11funds made available pursuant to the Riverfront Development
12Fund under Section 10-15 of the River Edge Redevelopment Zone
13Act; or funds from the Fund for Illinois' Future under Section
146z-47 of the State Finance Act, funds for school construction
15under Section 5 of the General Obligation Bond Act, funds
16authorized under Section 3 of the School Construction Bond Act,
17funds for school infrastructure under Section 6z-45 of the
18State Finance Act, and funds for transportation purposes under
19Section 4 of the General Obligation Bond Act. "Public works"
20also includes (i) all projects financed in whole or in part
21with funds from the Department of Commerce and Economic
22Opportunity under the Illinois Renewable Fuels Development
23Program Act for which there is no project labor agreement; (ii)
24all work performed pursuant to a public private agreement under
25the Public Private Agreements for the Illiana Expressway Act or
26the Public-Private Agreements for the South Suburban Airport

 

 

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1Act; and (iii) all projects undertaken under a public-private
2agreement under the Public-Private Partnerships for
3Transportation Act. "Public works" also includes all projects
4at leased facility property used for airport purposes under
5Section 35 of the Local Government Facility Lease Act. "Public
6works" also includes the construction of a new wind power
7facility by a business designated as a High Impact Business
8under Section 5.5(a)(3)(E) of the Illinois Enterprise Zone Act.
9"Public works" does not include work done directly by any
10public utility company, whether or not done under public
11supervision or direction, or paid for wholly or in part out of
12public funds. "Public works" also includes any corrective
13action performed pursuant to Title XVI of the Environmental
14Protection Act for which payment from the Underground Storage
15Tank Fund is requested. "Public works" does not include
16projects undertaken by the owner at an owner-occupied
17single-family residence or at an owner-occupied unit of a
18multi-family residence. "Public works" does not include work
19performed for soil and water conservation purposes on
20agricultural lands, whether or not done under public
21supervision or paid for wholly or in part out of public funds,
22done directly by an owner or person who has legal control of
23those lands.
24    "Construction" means all work on public works involving
25laborers, workers or mechanics. This includes any maintenance,
26repair, assembly, or disassembly work performed on equipment

 

 

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1whether owned, leased, or rented.
2    "Locality" means the county where the physical work upon
3public works is performed, except (1) that if there is not
4available in the county a sufficient number of competent
5skilled laborers, workers and mechanics to construct the public
6works efficiently and properly, "locality" includes any other
7county nearest the one in which the work or construction is to
8be performed and from which such persons may be obtained in
9sufficient numbers to perform the work and (2) that, with
10respect to contracts for highway work with the Department of
11Transportation of this State, "locality" may at the discretion
12of the Secretary of the Department of Transportation be
13construed to include two or more adjacent counties from which
14workers may be accessible for work on such construction.
15    "Public body" means the State or any officer, board or
16commission of the State or any political subdivision or
17department thereof, or any institution supported in whole or in
18part by public funds, and includes every county, city, town,
19village, township, school district, irrigation, utility,
20reclamation improvement or other district and every other
21political subdivision, district or municipality of the state
22whether such political subdivision, municipality or district
23operates under a special charter or not.
24    "Labor organization" means an organization that is the
25exclusive representative of an employer's employees in any
26particular trade or occupation recognized or certified

 

 

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1pursuant to the National Labor Relations Act.
2    The terms "general prevailing rate of hourly wages",
3"general prevailing rate of wages" or "prevailing rate of
4wages" when used in this Act mean the hourly cash wages plus
5annualized fringe benefits for training and apprenticeship
6programs approved by the U.S. Department of Labor, Bureau of
7Apprenticeship and Training, health and welfare, insurance,
8vacations and pensions paid generally, in the locality in which
9the work is being performed, to employees engaged in work of a
10similar character on public works.
11(Source: P.A. 97-502, eff. 8-23-11; 98-109, eff. 7-25-13;
1298-482, eff. 1-1-14; 98-740, eff. 7-16-14; 98-756, eff.
137-16-14.)
 
14    (820 ILCS 130/4)  (from Ch. 48, par. 39s-4)
15    Sec. 4. Ascertaining prevailing wage.
16    (a) The prevailing rate of wages paid to individuals
17covered under this Act shall not be less than the rate that
18prevails for work of a similar character on public works in the
19locality in which the work is performed under collective
20bargaining agreements between employer associations and bona
21fide labor organizations relating to each craft or type of
22worker or mechanic needed to execute the contract or perform
23such work, and successor collective bargaining agreements.
24    (b) If the prevailing rates of wages and fringe benefits
25cannot reasonably and fairly be applied in any locality because

 

 

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1no such agreements exist or were not available to the
2Department of Labor during its investigation, the Department of
3Labor shall determine the rates and fringe benefits on public
4works for the same or most similar work in the nearest and most
5similar neighboring locality in which such agreements exist.
6The Department of Labor shall keep a record of its findings
7available for inspection by any interested party in the office
8of the Department of Labor.
9    (c) In the event it is determined, after a written
10objection is filed and a hearing is held in accordance with
11Section 9 of this Act, that a valid collective bargaining
12agreement between a labor organization and an employer
13association does not exist in a particular trade or occupation
14in the locality where the work is performed, then the wage paid
15on such public works to laborers, workers, or mechanics in the
16same trade or occupation in the locality shall be the
17Department of Labor's previous annually determined prevailing
18rate of wage.
19    (d) (a) The public body awarding any contract for public
20work or otherwise undertaking any public works, shall ascertain
21the general prevailing rate of hourly wages in the locality in
22which the work is to be performed, for each craft or type of
23worker or mechanic needed to execute the contract, and where
24the public body performs the work without letting a contract
25therefor, shall ascertain the prevailing rate of wages on a per
26hour basis in the locality, and such public body shall specify

 

 

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1in the resolution or ordinance and in the call for bids for the
2contract, or where the public body performs the work without
3letting the contract in a written instrument provided to the
4contractor, that the general prevailing rate of wages in the
5locality for each craft or type of worker or mechanic needed to
6execute the contract or perform such work, also the general
7prevailing rate for legal holiday and overtime work, as
8ascertained by the public body or by the Department of Labor
9shall be paid for each craft or type of worker needed to
10execute the contract or to perform such work, and it shall be
11mandatory upon the contractor to whom the contract is awarded
12and upon any subcontractor under him, and where the public body
13performs the work, upon the public body, to pay not less than
14the specified rates to all laborers, workers and mechanics
15employed by them in the execution of the contract or such work.
16Compliance with this Act is a matter of statewide concern, and
17a public body may not opt out of any provisions of this Act. ;
18provided, however, that if the public body desires that the
19Department of Labor ascertain the prevailing rate of wages, it
20shall notify the Department of Labor to ascertain the general
21prevailing rate of hourly wages for work under contract, or for
22work performed by a public body without letting a contract as
23required in the locality in which the work is to be performed,
24for each craft or type of worker or mechanic needed to execute
25the contract or project or work to be performed. Upon such
26notification the Department of Labor shall ascertain such

 

 

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1general prevailing rate of wages, and certify the prevailing
2wage to such public body.
3    (e) (a-1) The public body or other entity awarding the
4contract shall cause to be inserted in the project
5specifications and the contract a stipulation to the effect
6that not 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 under the contract.
10    (f) (a-2) When a public body or other entity covered by
11this Act has awarded work to a contractor without a public bid,
12contract or project specification, such public body or other
13entity shall comply with subsection (e) (a-1) by providing the
14contractor with written notice on the purchase order related to
15the work to be done or on a separate document indicating that
16not less than the prevailing rate of wages ascertained as found
17by the public body or Department of Labor or determined by the
18court on review shall be paid to all laborers, workers, and
19mechanics performing work on the project.
20    (g) (a-3) Where a complaint is made and the Department of
21Labor determines that a violation occurred, the Department of
22Labor shall determine if proper written notice under this
23Section 4 was given. If proper written notice was not provided
24to the contractor by the public body or other entity, the
25Department of Labor shall order the public body or other entity
26to pay any interest, penalties or fines that would have been

 

 

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1owed by the contractor if proper written notice were provided.
2The failure by a public body or other entity to provide written
3notice does not relieve the contractor of the duty to comply
4with the prevailing wage rate, nor of the obligation to pay any
5back wages, as determined under this Act. For the purposes of
6this subsection, back wages shall be limited to the difference
7between the actual amount paid and the prevailing rate of wages
8required to be paid for the project. The failure of a public
9body or other entity to provide written notice under this
10Section 4 does not diminish the right of a laborer, worker, or
11mechanic to the prevailing rate of wages as determined under
12this Act.
13    (h) (b) It shall also be mandatory upon the contractor to
14whom the contract is awarded to insert into each subcontract
15and into the project specifications for each subcontract a
16written stipulation to the effect that not less than the
17prevailing rate of wages shall be paid to all laborers,
18workers, and mechanics performing work under the contract. It
19shall also be mandatory upon each subcontractor to cause to be
20inserted into each lower tiered subcontract and into the
21project specifications for each lower tiered subcontract a
22stipulation to the effect that not less than the prevailing
23rate of wages shall be paid to all laborers, workers, and
24mechanics performing work under the contract. A contractor or
25subcontractor who fails to comply with this subsection (b) is
26in violation of this Act.

 

 

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

 

 

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1fines that would have been owed by the subcontractor if proper
2written notice were provided. The failure by a public body or
3other entity to provide written notice does not relieve the
4subcontractor of the duty to comply with the prevailing wage
5rate, nor of the obligation to pay any back wages, as
6determined under this Act. For the purposes of this subsection,
7back wages shall be limited to the difference between the
8actual amount paid and the prevailing rate of wages required
9for the project. The failure to provide written notice by a
10public body, other entity, or contractor does not diminish the
11right of a laborer, worker, or mechanic to the prevailing rate
12of wages as determined under this Act.
13    (k) (c) A public body or other entity shall also require in
14all contractor's and subcontractor's bonds that the contractor
15or subcontractor include such provision as will guarantee the
16faithful performance of such prevailing wage clause as provided
17by contract or other written instrument. All bid specifications
18shall list the specified rates to all laborers, workers and
19mechanics in the locality for each craft or type of worker or
20mechanic needed to execute the contract.
21    (l) (d) If the Department of Labor revises the prevailing
22rate of hourly wages to be paid by the public body or other
23entity, the revised rate shall apply to such contract, and the
24public body or other entity shall be responsible to notify the
25contractor and each subcontractor, of the revised rate.
26    The public body or other entity shall discharge its duty to

 

 

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1notify of the revised rates by inserting a written stipulation
2in all contracts or other written instruments that states the
3prevailing rate of wages are revised by the Department of Labor
4and are available on the Department's official website. This
5shall be deemed to be proper notification of any rate changes
6under this subsection.
7    (m) The Department of Labor shall establish a new
8classification for a particular craft or type of worker only
9after conducting an investigatory hearing under this Section.
10Any interested party has the right to be a party to such
11investigatory hearing. (e) Two or more investigatory hearings
12under this Section on the issue of establishing a new
13prevailing wage classification for a particular craft or type
14of worker shall be consolidated in a single hearing before the
15Department. Such consolidation shall occur whether each
16separate investigatory hearing is conducted by a public body or
17the Department. The party requesting a consolidated
18investigatory hearing shall have the burden of establishing
19that there is no existing prevailing wage classification for
20the particular craft or type of worker in any of the localities
21under consideration.
22    (n) (f) It shall be mandatory upon the contractor or
23construction manager to whom a contract for public works is
24awarded to post, at a location on the project site of the
25public works that is easily accessible to the workers engaged
26on the project, the prevailing wage rates for each craft or

 

 

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1type of worker or mechanic needed to execute the contract or
2project or work to be performed. In lieu of posting on the
3project site of the public works, a contractor which has a
4business location where laborers, workers, and mechanics
5regularly visit may: (1) post in a conspicuous location at that
6business the current prevailing wage rates for each county in
7which the contractor is performing work; or (2) provide such
8laborer, worker, or mechanic engaged on the public works
9project a written notice indicating the prevailing wage rates
10for the public works project. A failure to post or provide a
11prevailing wage rate as required by this Section is a violation
12of this Act.
13(Source: P.A. 96-437, eff. 1-1-10; 97-964, eff. 1-1-13.)
 
14    (820 ILCS 130/7)  (from Ch. 48, par. 39s-7)
15    Sec. 7. The finding of the public body awarding the
16contract or authorizing the work or the Department of Labor
17ascertaining and declaring the general prevailing rate of
18hourly wages shall be final for all purposes of the contract
19for public work then being considered, unless reviewed under
20the provisions of this Act. Nothing in this Act, however, shall
21be construed to prohibit the payment to any laborer, worker or
22mechanic employed on any public work, as aforesaid, of more
23than the prevailing rate of wages; provided further that
24nothing in this Act shall be construed to limit the hours of
25work which may be performed by any person in any particular

 

 

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1period of time.
2(Source: P.A. 81-992.)
 
3    (820 ILCS 130/9)  (from Ch. 48, par. 39s-9)
4    Sec. 9. To effectuate the purpose and policy of this Act,
5the each public body shall, during the month of June of each
6calendar year, investigate and ascertain the prevailing rate of
7wages as defined in this Act and publicly post or keep
8available for inspection by any interested party in the main
9office of such public body its determination of such prevailing
10rate of wage and shall promptly file, no later than July 15 of
11each year, a certified copy thereof in the office of the
12Illinois Department of Labor. The Department of Labor shall,
13throughout during the month of June of each calendar year,
14investigate and ascertain the prevailing rate of wages for each
15county in the State and shall publish the prevailing wage
16schedule ascertained on its official website no later than
17August 15 of each year. If the prevailing rate of wages is
18based on a collective bargaining agreement, any increases
19directly ascertainable from such collective bargaining
20agreement shall also be published on the website. Further, if
21the prevailing rate of wages is based on a collective
22bargaining agreement, the explanation of classes on the
23prevailing wage schedule shall be consistent with the
24explanation of existing classifications set forth in the
25collective bargaining agreement. If a public body does not

 

 

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1investigate and ascertain the prevailing rate of wages during
2the month of June as required by the previous paragraph, then
3the prevailing rate of wages for that public body shall be the
4rate as determined by the Department under this paragraph for
5the county in which such public body is located.
6    Where the Department of Labor ascertains the prevailing
7rate of wages, it is the duty of the Department of Labor within
830 days after receiving a notice from the public body
9authorizing the proposed work, to conduct an investigation to
10ascertain the prevailing rate of wages as defined in this Act
11and such investigation shall be conducted in the locality in
12which the work is to be performed. The Department of Labor
13shall send a certified copy of its findings to the public body
14authorizing the work and keep a record of its findings
15available for inspection by any interested party in the office
16of the Department of Labor at Springfield.
17    The public body except for the Department of Transportation
18with respect to highway contracts shall within 30 days after
19filing with the Department of Labor, or the Department of Labor
20shall within 30 days after filing with such public body,
21publish in a newspaper of general circulation within the area
22that the determination is effective, a notice of its
23determination and shall promptly mail a copy of its
24determination to any employer, and to any association of
25employers and to any person or association of employees who
26have filed their names and addresses, requesting copies of any

 

 

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1determination stating the particular rates and the particular
2class of workers whose wages will be affected by such rates.
3    At any time within 30 days after the Department of Labor
4has published on its official web site a prevailing wage
5schedule, any person affected thereby may object in writing to
6the determination or such part thereof as they may deem
7objectionable by filing a written notice with the public body
8or Department of Labor, whichever has made such determination,
9stating the specified grounds of the objection. A person filing
10an objection shall have the burden of establishing that the
11Department of Labor's determination does not accurately
12reflect the appropriate prevailing area wage, as defined in
13Section 4(a) of this Act, with competent evidence. During the
14pendency of any objection and until final determination thereof
15with regard to existing classifications, the work in question
16shall proceed under the previous rate established by the
17Department. It shall thereafter be the duty of the public body
18or Department of Labor to set a date for a hearing on the
19objection after giving written notice to the objectors at least
2010 days before the date of the hearing and said notice shall
21state the time and place of such hearing. Such hearing by the
22Department of Labor a public body shall be held within 45 days
23after the objection is filed, and shall not be postponed or
24reset for a later date except upon the consent, in writing, of
25all the objectors and the Department of Labor public body. If
26such hearing is not held by the public body within the time

 

 

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1herein specified, the Department of Labor may, upon request of
2the objectors, conduct the hearing on behalf of the public
3body.
4    The public body or Department of Labor may , whichever has
5made such determination, is authorized in its discretion to
6hear each written objection filed separately or consolidate for
7hearing any one or more written objections filed with them. At
8such hearing, the public body or Department of Labor shall
9introduce in evidence the investigation it instituted which
10formed the basis of its determination, and the public body or
11Department of Labor, or any interested objectors may thereafter
12introduce such evidence as is material to the issue.
13Thereafter, the public body or Department of Labor, must rule
14upon the written objection and make such final determination as
15it believes the evidence warrants, and promptly file a
16certified copy of its final determination with such public
17body, and serve a copy by personal service, or registered mail,
18or electronic mail on all parties to the proceedings. The final
19determination by the Department of Labor or a public body shall
20be rendered within 30 days after the conclusion of the hearing.
21    If proceedings to review judicially the final
22determination of the public body or Department of Labor are not
23instituted as hereafter provided, such determination shall be
24final and binding.
25    The provisions of the Administrative Review Law, and all
26amendments and modifications thereof, and the rules adopted

 

 

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1pursuant thereto, shall apply to and govern all proceedings for
2the judicial review of final administrative decisions of any
3public body or the Department of Labor hereunder. The term
4"administrative decision" is defined as in Section 3-101 of the
5Code of Civil Procedure.
6    Appeals from all final orders and judgments entered by the
7court in review of the final administrative decision of the
8public body or Department of Labor, may be taken by any party
9to the action.
10    Any proceeding in any court affecting a determination of
11the Department of Labor or public body shall have priority in
12hearing and determination over all other civil proceedings
13pending in said court, except election contests.
14    In all reviews or appeals under this Act, it shall be the
15duty of the Attorney General to represent the Department of
16Labor, and defend its determination. The Attorney General shall
17not represent any public body, except the State, in any such
18review or appeal.
19(Source: P.A. 98-173, eff. 1-1-14.)
 
20    (820 ILCS 130/10)  (from Ch. 48, par. 39s-10)
21    Sec. 10. The presiding officer of the public body, or his
22or her authorized representative and the Director of the
23Department of Labor, or his or her authorized representative
24may interview workers, administer oaths, take or cause to be
25taken the depositions of witnesses, and require by subpoena the

 

 

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1attendance and testimony of witnesses, and the production of
2all books, records, and other evidence relative to the matter
3under investigation or hearing. Such subpoena shall be signed
4and issued by such presiding officer or his or her authorized
5representative, or the Director or his or her authorized
6representative.
7    Upon request by the Director of Labor or his or her
8deputies or agents, records shall be copied and submitted for
9evidence at no cost to the Department of Labor. Every employer
10upon request shall furnish to the Director or his or her
11authorized representative, on demand, a sworn statement of the
12accuracy of the records. Any employer who refuses to furnish a
13sworn statement of the records is in violation of this Act.
14    In case of failure of any person to comply with any
15subpoena lawfully issued under this Section section or on the
16refusal of any witness to produce evidence or to testify to any
17matter regarding which he or she may be lawfully interrogated,
18it is the duty of any circuit court, upon application of such
19presiding officer or his or her authorized representative, or
20the Director or his or her authorized representative, to compel
21obedience by proceedings for contempt, as in the case of
22disobedience of the requirements of a subpoena issued by such
23court or a refusal to testify therein. The Such presiding
24officer and the Director may certify to official acts.
25(Source: P.A. 93-38, eff. 6-1-04.)
 

 

 

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1    (820 ILCS 130/8 rep.)
2    Section 10. The Prevailing Wage Act is amended by repealing
3Section 8.".