TRUTH IN EMPLOYMENT ACT House SponsorsRep. Dan Reitz-Mike Boland-Larry McKeon-Patrick Verschoore-Brandon W. Phelps, Robert Rita and Charles E. Jefferson 1/11/2005HouseSession Sine Die New Act820 ILCS 305/26.1 new820 ILCS 405/2206.2 new Creates the Truth in Employment Act. Provides that, if a contractor is a successful bidder for a construction project and purposefully misclassifies one or more of its employees as independent contractors, the contractor is liable to an unsuccessful bidder, or an entity contracting with an unsuccessful bidder (including a labor organization), for damages suffered because the bid was not accepted. Amends the Workers' Compensation Act and the Unemployment Insurance Act by providing that, if the Industrial Commission or the Director of Employment Security enters an order determining that an employer has purposefully misclassified one or more of its employees as independent contractors in violation of the Workers' Compensation Act, the Workers' Occupational Diseases Act, or the Unemployment Insurance Act, the following provisions apply: the Commission or Department may direct the employer to cease its operations, direct the employer to pay $250 for each day during which the violation continues, and require the employer to continue to pay employees affected by the order for the first 10 days of the order; no licenses or permits of any kind may be issued to the employer by any State agency or officer or any unit of local government nor may any such licenses or permits be renewed by any State agency or officer or any unit of local government until the Commission or Department enters an order determining that an employer has cured the misclassification; and no State agency or officer may enter into any contracts with the employer until 3 years have elapsed since the Commission or Department enters an order determining that an employer has cured the misclassification.Fiscal Note (Department of Employment Security) An exact dollar estimate is extremely problematic and exacerbated from unknown workload levels, but the annual State expense would be high even with low workload.House Amendment No. 1 Deletes reference to:820 ILCS 405/2206.2 newAdds reference to:20 ILCS 1005/1005-160 newDeletes everything. Creates the Truth in Employment Act. Requires a construction contractor for whom a person is performing work and is classified as an independent contractor with respect to that work to file a statement with the Department of Revenue once each year, together with a $5 filing fee. Provides that the statement shall include: the name and address of the contractor for whom the person is performing the work; the name and address of the general contractor (if the general contractor is not the contractor for whom the person is performing the work); and any other information required by the Department of Revenue. Provides that, if a contractor is a successful bidder for a construction project and knowingly or intentionally misclassifies one or more of its employees as independent contractors, the contractor is liable to an unsuccessful bidder, or an entity contracting with an unsuccessful bidder (including a labor organization), for damages suffered because the bid was not accepted. Provides that, if the the Department of Revenue determines that an employer has knowingly or intentionally misclassified one or more of its employees as independent contractors, the Department may direct the employer to cease its operations, direct the employer to pay penalties, and require the employer to continue to pay, for 10 days, employees affected by the determination; no licenses or permits of any kind may be issued to the employer by any State agency or officer or any unit of local government nor may any such licenses or permits be renewed by any State agency or officer or any unit of local government until the Department enters an order determining that an employer has cured the misclassification; and no State agency or officer may enter into any contracts with the employer until 2 years have elapsed since the Department enters an order determining that an employer has cured the misclassification. Provides for criminal penalties and enforcement. Creates the Truth in Employment Fund as a special fund in the State treasury and amends the State Finance Act to include the Fund as a special fund; provides that fees and penalties received by the Department of Revenue under the Act shall be deposited into the Fund; and provides that moneys in the Fund shall be used, subject to appropriation, by the Department of Revenue for administration, investigation, and other expenses incurred under the Act. Provides that any moneys in the Fund at the end of a fiscal year in excess of a $1,000,000 reserve shall be transferred to the General Revenue Fund. Contains provisions concerning rulemaking, judicial review, waivers, severability, and other matters. Amends the Workers' Compensation Act and the Department of Employment Security Law of the Civil Administrative Code of Illinois to provide that the Industrial Commission and the Department of Employment Security shall cooperate with the Department of Revenue by providing information concerning any suspected misclassification by a contractor of any of its employees as independent contractors.Fiscal Note (Department of Labor) House Bill 4883 has no financial effect on the Illinois Department of Labor.Judicial Note (Admin Office of the Illinois Courts) Based on a review of House Bill 4883, as introduced, it has been determined that there may be a minimal increase in judicial workloads. However, the bill would not increase the number of judges needed in the State.Judicial Note (Admin Office of the Illinois Courts) Based on a review of House Bill 4883, as amended by House Amendment 1, it has been determined that there may be a minimal increase in judicial workloads. However, the bill would not increase the number of judges needed in the State.State Mandates Fiscal Note (Department of Commerce and Economic Opportunity) House Bill 4883 (HA #1) creates a local government organization and structure mandate under the State Mandates Act. An estimate of the increased costs incurred by units of local government (if any) is not available.Fiscal Note (Department of Labor) House Bill 4883 (HA #1) has no financial effect on the Illinois Department of Labor.Pension Note (Economic and Fiscal Commission) As amended by HA2, would not impact any public pension fund or retirement system in Illinois.Judicial Note (Admin Office of the Illinois Courts) Based on a review of House Bill 4883, as amended by House Amendment 2, it has been determined there may by a minimal increase in judicial workloads. However, the bill would not increase the number of judges needed in the State.Fiscal Note (Department of Labor) The Act and Amendment does not relate to the IL Department of Labor. We do not enforce any of these laws. Therefore, no financial effect on the IL Department of Labor.State Debt Impact Note (Economic and Fiscal Commission) As amended by HA2, would not affect the level of State indebtedness. 2/4/2004HouseFiled with the Clerk by Rep. Larry McKeon 2/4/2004HouseFirst Reading 2/4/2004HouseReferred to Rules Committee 2/25/2004HouseChief Sponsor Changed to Rep. Dan Reitz 2/25/2004HouseAdded Chief Co-Sponsor Rep. Larry McKeon 2/25/2004HouseChief Co-Sponsor Changed to Rep. Larry McKeon 2/26/2004HouseAssigned to Labor Committee 3/4/2004HouseDo Pass / Standard Debate Labor Committee; 003-006-000 3/4/2004HousePlaced on Calendar 2nd Reading - Standard Debate 3/22/2004HouseFiscal Note Filed 3/24/2004HouseAdded Chief Co-Sponsor Rep. Mike Boland 3/29/2004HouseHouse Amendment No. 1 Filed with Clerk by Rep. Dan Reitz 3/29/2004HouseHouse Amendment No. 1 Referred to Rules Committee 3/30/2004HouseAdded Co-Sponsor Rep. Robert Rita 3/30/2004HouseAdded Co-Sponsor Rep. Charles E. Jefferson 3/30/2004HouseHouse Amendment No. 1 Rules Refers to Labor Committee 3/31/2004HouseSecond Reading - Standard Debate 3/31/2004HouseHeld on Calendar Order of Second Reading - Standard Debate 4/1/2004HouseHouse Amendment No. 1 Recommends Be Adopted Labor Committee; 008-004-000 4/1/2004HouseFiscal Note Requested by Rep. William B. Black; As Amended 4/1/2004HouseState Mandates Fiscal Note Requested by Rep. William B. Black; As Amended 4/1/2004HouseJudicial Note Requested by Rep. Terry R. Parke 4/1/2004HouseFiscal Note Filed 4/1/2004HouseJudicial Note Filed As Amended by HA 1 4/1/2004HouseJudicial Note Filed 4/1/2004HouseState Mandates Fiscal Note Filed As Amended by HA 1 4/1/2004HouseFiscal Note Filed As Amended by HA 1 4/1/2004HouseHouse Amendment No. 1 Adopted by Voice Vote 4/1/2004HousePlaced on Calendar Order of 3rd Reading - Standard Debate 4/1/2004HouseAdded Chief Co-Sponsor Rep. Patrick Verschoore 4/1/2004HouseAdded Chief Co-Sponsor Rep. Brandon W. Phelps 4/2/2004HouseCommittee/3rd Reading Deadline Extended-Rule 9(b); April 30, 2004 4/30/2004HouseCommittee/3rd Reading Deadline Extended-Rule 9(b); May 31,2004 5/4/2004HouseRecalled to Second Reading - Standard Debate 5/4/2004HouseHeld on Calendar Order of Second Reading - Standard Debate 5/4/2004HouseHouse Amendment No. 2 Filed with Clerk by Rep. Dan Reitz 5/4/2004HouseHouse Amendment No. 2 Referred to Rules Committee 5/5/2004HousePension Note Filed As Amended by HA 2 5/5/2004HouseJudicial Note Filed As Amended by HA 2 5/10/2004HouseFiscal Note Filed As Amended by HA 2 5/10/2004HouseState Debt Impact Note Filed As Amended by HA 2 6/1/2004HouseRule 19(a) / Re-referred to Rules Committee 1/11/2005HouseSession Sine Die