HB4600 EnrolledLRB102 23985 SPS 33190 b

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. If and only if House Bill 5412 of the 102nd
5General Assembly becomes law, then the Department of
6Transportation Law of the Civil Administrative Code of
7Illinois is amended by adding Section 2705-620 as follows:
8    (20 ILCS 2705/2705-620 new)
9    Sec. 2705-620. Bond Reform in the Construction Industry
10Task Force.
11    (a) There is created the Bond Reform in the Construction
12Industry Task Force consisting of the following members:
13        (1) the Governor, or his or her designee;
14        (2) the State Treasurer, or his or her designee;
15        (3) the Director of Insurance, or his or her designee;
16        (4) 2 members appointed by the Speaker of the House of
17    Representatives;
18        (5) 2 members appointed by the Minority Leader of the
19    House of Representatives;
20        (6) 2 members appointed by the President of the
21    Senate;
22        (7) 2 members appointed by the Minority Leader of the
23    Senate; and



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1        (8) 7 members representing the construction industry
2    appointed by the Governor.
3    The Department of Transportation shall provide
4administrative support to the Task Force.
5    (b) The Task Force shall study innovative ways to reduce
6the cost of insurance in the private and public construction
7industry while protecting owners from risk of nonperformance.
8The Task Force shall consider options that include, but are
9not limited to, owner-financed insurance instead of
10contractor-financed insurance and alternative ways to manage
11risk other than bonds or other insurance products.
12    (c) The Task Force shall report its findings and
13recommendations to the General Assembly no later than March 1,
15    (d) This Section is repealed December 31, 2023.
16    Section 10. If and only if House Bill 5412 of the 102nd
17General Assembly becomes law, then the Illinois Wage Payment
18and Collection Act is amended by changing Section 13.5 as
20    (820 ILCS 115/13.5)
21    Sec. 13.5. Primary contractor responsibility for wage
22claims in construction industry.
23    (a) For all contracts entered into on or after July 1,
242022, a primary contractor making or taking a contract in the



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1State for the erection, construction, alteration, or repair of
2a building, structure, or other private work in the State
3where the aggregate costs of the project exceed $20,000 ,
4shall assume, and is liable for, any debt owed to a claimant
5under this Section or to a third party on a wage claimant's
6behalf incurred pursuant to this Act by a subcontractor at any
7tier acting under, by, or for the primary contractor for the
8wage claimant's performance of labor included in the subject
9of the contract between the primary contractor and the owner.
10This Section does not apply to work performed by a contractor
11of the federal government, the State, a special district, a
12city, a county, or any political subdivision of the State.
13    (b) As used in this Section:
14    "Construction" means building, altering, repairing,
15improving, or demolishing any structure or building or making
16improvements of any kind to real property.
17    "Primary contractor" means a contractor that has a direct
18contractual relationship with a property owner. "Primary
19contractor" may have the same meaning as a "general
20contractor", "prime contractor", or "construction manager". A
21property owner who acts as a primary contractor related to the
22erection, construction, alteration, or repair of his or her
23primary residence shall be exempt from liability under this
25    "Private work" means any erection, construction,
26alteration, or repair of a building, structure, or other work.



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1    "Subcontractor" means a contractor that has a contractual
2relationship with the primary contractor or with another
3subcontractor at any tier, who furnishes any goods or services
4in connection with the contract between the primary contractor
5and the property owner, but does not include contractors who
6solely provide goods and transport of such goods related to
7the contract.
8    (c) The primary contractor's liability under this Section
9shall extend only to any unpaid wages or fringe or other
10benefit payments or contributions, including interest owed,
11penalties assessed by the Department, and reasonable
12attorney's fees, but shall not extend to liquidated damages.
13    (d) A primary contractor or any other person shall not
14evade or commit any act that negates the requirements of this
15Section. Except as otherwise provided in a contract between
16the primary contractor and the subcontractor, the
17subcontractor shall indemnify the primary contractor for any
18wages, fringe or other benefit payments or contributions,
19damages, interest, penalties, or attorney's fees owed as a
20result of the subcontractor's failure to pay wages or fringe
21or other benefit payments or contributions as provided in this
22Section, unless the subcontractor's failure to pay was due to
23the primary contractor's failure to pay moneys due to the
24subcontractor in accordance with the terms of their
25contractual relationship.
26    (e) Nothing in this Section shall supersede or modify the



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1obligations and liability that any primary contractor,
2subcontractor, or property owner may bear as an employer under
3this Act or any other applicable law. The obligations and
4remedies provided in this Section shall be in addition to any
5obligations and remedies otherwise provided by law. Nothing in
6this Section shall be construed to impose liability on a
7primary contractor for anything other than unpaid wages,
8fringe or other benefit payments or contributions, penalties
9assessed by the Department, interest owed, and reasonable
10attorney's fees.
11    (f) Claims brought pursuant to this Section shall be done
12so in accordance with Section 11 and 11.5 of this Act. Nothing
13in this Section shall be construed to provide a third party
14with the right to file a complaint with the Department
15alleging violation of this Section.
16    (g) The following shall be exempt from liability under
17this Section:
18        (1) primary contractors who are parties to a
19    collective bargaining agreement on the project where the
20    work is being performed; and
21        (2) primary contractors making or taking a contract in
22    the State for the alteration or repair of an existing
23    single-family dwelling or to a single residential unit in
24    an existing multi-unit structure. Primary contractors who
25    are parties to a collective bargaining agreement on the
26    project where the work is being performed shall be exempt



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1    from this Section.
2    (h) Prior to the commencement of any civil action, a
3claimant or a representative of a claimant shall provide
4written notice to the employer and to the primary contractor
5detailing the nature and basis for the claim. Failure of the
6employer or the primary contractor to resolve the claim within
710 days after receipt of this notice, or during any agreed upon
8period extending this deadline, may result in the filing of a
9civil action to enforce the provisions of this Act.
10    (i) Claims brought pursuant to this Section shall be filed
11with the Department of Labor or filed with the circuit court
12within 3 years after the wages, final compensation, or wage
13supplements were due. This subsection does not apply to any
14other claims under this Act or any other applicable law
15against a primary contractor, subcontractor, or homeowner as
16an employer.
17(Source: 10200HB5412eng.)
18    Section 99. Effective date. This Act takes effect upon
19becoming law or on the date House Bill 5412 of the 102nd
20General Assembly takes effect, whichever is later.