093_HB0046ham004

 










                                     LRB093 02098 SJM 16676 a

 1                     AMENDMENT TO HOUSE BILL 46

 2        AMENDMENT NO.     .  Amend House Bill 46, AS AMENDED,  by
 3    replacing  everything  after  the  enacting  clause  with the
 4    following:

 5        "Section 1.  Short title. This Act may be  cited  as  the
 6    Illinois Renewable Fuels Development Program Act.

 7        Section   5.  Findings  and  State  policy.  The  General
 8    Assembly recognizes that agriculture is a vital sector of the
 9    Illinois economy and that an important  growth  industry  for
10    the   Illinois   agricultural   sector   is  renewable  fuels
11    production.   Renewable   fuels   produced   from    Illinois
12    agricultural  products  hold  great potential for growing the
13    State's economy,  reducing  our  dependence  on  foreign  oil
14    supplies,  and  improving the environment by reducing harmful
15    emissions from vehicles. Illinois  is  the  nation's  leading
16    producer of ethanol, a clean, renewable fuel with significant
17    environmental  benefits.  The  General  Assembly  finds  that
18    reliable  supplies of renewable fuels will be integral to the
19    long term energy security of the United States.  The  General
20    Assembly  declares  that it is the public policy of the State
21    of Illinois to promote and encourage the production  and  use
22    of renewable fuels as a means not only to improve air quality
 
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 1    in   the   State  and  the  nation,  but  also  to  grow  the
 2    agricultural sector of the Illinois economy. To achieve these
 3    public  policy  objectives,  the  General   Assembly   hereby
 4    authorizes  the  creation  and implementation of the Illinois
 5    Renewable Fuels Development Program within the Department.

 6        Section 10.  Definitions. As used in this Act:
 7        "Biodiesel" means a renewable diesel  fuel  derived  from
 8    biomass that is intended for use in diesel engines.
 9        "Biodiesel   blend"  means  a  blend  of  biodiesel  with
10    petroleum-based diesel fuel in which  the  resultant  product
11    contains no less than 1% and no more than 99% biodiesel.
12        "Biomass" means non-fossil organic materials that have an
13    intrinsic chemical energy content. "Biomass" includes, but is
14    not  limited  to,  soybean  oil,  other  vegetable  oils, and
15    ethanol.
16        "Department"  means  the  Department  of   Commerce   and
17    Community Affairs.
18        "Diesel  fuel"  means  any  product  intended  for use or
19    offered for sale as a fuel for engines in which the  fuel  is
20    injected  into the combustion chamber and ignited by pressure
21    without electric spark.
22        "Director" means the Director of Commerce  and  Community
23    Affairs.
24        "Ethanol"  means  a  product  produced  from agricultural
25    commodities or by-products used as a fuel or  to  be  blended
26    with other fuels for use in motor vehicles.
27        "Fuel" means fuel as defined in Section 1.19 of the Motor
28    Fuel Tax Law.
29        "Gasohol"  means  motor  fuel  that  is  no more than 90%
30    gasoline and at least 10% denatured ethanol that contains  no
31    more than 1.25% water by weight.
32        "Gasoline"  means  all  products commonly or commercially
33    known  or  sold  as  gasoline  (including  casing  head   and
 
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 1    absorption or natural gasoline).
 2        "Illinois  agricultural  product"  means any agricultural
 3    commodity grown in Illinois that  is  used  by  a  production
 4    facility  to  produce  renewable fuel in Illinois, including,
 5    but not limited to, corn, barley, and soy beans.
 6        "Labor Organization" means any organization:
 7             (1)  in which construction trades, crafts, or  labor
 8        employees, or all or any of these participate; and
 9             (2)  that represents construction trades, crafts, or
10        labor employees, or any or all of these; and
11             (3)  that  exists  for  the  purpose, in whole or in
12        part, of negotiating with the employers  of  construction
13        trades,  crafts,  or  labor  employees,  or any or all of
14        these, terms and conditions of employment, including  but
15        not   limited   to:   wages,   hours  of  work,  overtime
16        provisions,  fringe  benefits,  and  the  settlement   of
17        grievances; and
18             (4)  that   participates   in   apprenticeship   and
19        training  approved  and registered with the United States
20        Department  of  Labor's  Bureau  of  Apprenticeship   and
21        Training, in the State of Illinois.
22        "Majority  blended  ethanol  fuel"  means motor fuel that
23    contains no less than 70% and  no  more  than  90%  denatured
24    ethanol and no less than 10% and no more than 30% gasoline.
25        "Motor  vehicles"  means motor vehicles as defined in the
26    Illinois Vehicle Code and watercraft propelled by an internal
27    combustion engine.
28        "Owner"  means  any  individual,   sole   proprietorship,
29    limited    partnership,    co-partnership,   joint   venture,
30    corporation, cooperative, or other legal entity that operates
31    or will operate a plant located within the State of Illinois.
32        "Plant" means  a  production  facility  that  produces  a
33    renewable  fuel. "Plant" includes land, any building or other
34    improvement on or to land, and any personal properties deemed
 
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 1    necessary  or  suitable  for  use,  whether  or  not  now  in
 2    existence,  in  the  processing  of  fuel  from  agricultural
 3    commodities or by-products.
 4        "Renewable fuel" means ethanol, gasohol, majority blended
 5    ethanol fuel, biodiesel blend fuel, and biodiesel.

 6        Section 15. Illinois Renewable Fuels Development Program.
 7        (a)  The  Department  must  develop  and  administer  the
 8    Illinois Renewable Fuels Development Program to assist in the
 9    construction, modification, alteration,  or  retrofitting  of
10    renewable  fuel  plants in Illinois. The recipient of a grant
11    under this Section must:
12             (1)  be  constructing,   modifying,   altering,   or
13        retrofitting a plant in the State of Illinois;
14             (2)   be   constructing,   modifying,  altering,  or
15        retrofitting a plant that has annual production  capacity
16        of  no less than 30,000,000 gallons of renewable fuel per
17        year; and
18             (3)  enter  into  a  project  labor   agreement   as
19        prescribed by Section 25 of this Act.
20        (b)  Grant applications must be made on forms provided by
21    and  in  accordance  with  procedures  established   by   the
22    Department.
23        (c)  The  Department  must  give preference to applicants
24    that use Illinois agricultural products in the production  of
25    renewable  fuel  at  the  plant  for which the grant is being
26    requested.

27        Section 20.  Grants. Subject to  appropriation  from  the
28    General  Revenue  Fund,  the  Director is authorized to award
29    grants to eligible applicants. The annual aggregate amount of
30    grants awarded shall not exceed $15,000,000.

31        Section 25. Project labor agreements.

 
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 1        (a)  The  project  labor  agreement  must   include   the
 2    following:
 3             (1)  provisions establishing the minimum hourly wage
 4        for each class of labor organization employee;
 5             (2) provisions establishing the benefits  and  other
 6        compensation   for   each  class  of  labor  organization
 7        employee; and
 8             (3)  provisions  establishing  that  no  strike   or
 9        disputes  will  be  engaged  in by the labor organization
10        employees.
11    The owner of the plant and the labor organizations shall have
12    the authority to include other terms and conditions  as  they
13    deem necessary.
14        (b)  The  project labor agreement shall be filed with the
15    Director in accordance with  procedures  established  by  the
16    Department.  At  a  minimum, the project labor agreement must
17    provide the names, addresses, and occupations of the owner of
18    the  plant  and  the  individuals  representing   the   labor
19    organization  employees  participating  in  the project labor
20    agreement. The agreement must  also  specify  the  terms  and
21    conditions required in subsection (a).

22        Section   30.  Administration  of  the  Act;  rules.  The
23    Department shall administer this  Act  and  shall  adopt  any
24    rules necessary for that purpose.

25        Section  905.  The  Prevailing  Wage  Act  is  amended by
26    changing Sections 2, 3, and 4 as follows:

27        (820 ILCS 130/2) (from Ch. 48, par. 39s-2)
28        Sec. 2.  This Act  applies  to  the  wages  of  laborers,
29    mechanics  and other workers employed in any public works, as
30    hereinafter defined, by any public body and to  anyone  under
31    contracts for public works.
 
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 1        As  used  in  this  Act,  unless  the  context  indicates
 2    otherwise:
 3        "Public  works"  means  all  fixed  works constructed for
 4    public use by any public body, other than work done  directly
 5    by  any  public  utility  company,  whether or not done under
 6    public supervision or direction, or paid  for  wholly  or  in
 7    part  out  of public funds.  "Public works" as defined herein
 8    includes all projects financed in whole or in part with bonds
 9    issued under the Industrial Project Revenue Bond Act (Article
10    11,  Division  74  of  the  Illinois  Municipal  Code),   the
11    Industrial   Building   Revenue   Bond   Act,   the  Illinois
12    Development  Finance  Authority  Act,  the  Illinois   Sports
13    Facilities Authority Act, or the Build Illinois Bond Act, and
14    all projects financed in whole or in part with loans or other
15    funds  made  available  pursuant  to  the Build Illinois Act.
16    "Public works" also includes all projects financed  in  whole
17    or  in  part  with  funds from the Department of Commerce and
18    Community  Affairs  under  the   Illinois   Renewable   Fuels
19    Development  Program  Act for which there is no project labor
20    agreement.
21        "Construction" means all work on public  works  involving
22    laborers, workers or mechanics.
23        "Locality"  means the county where the physical work upon
24    public works is performed, except (1) that if  there  is  not
25    available  in  the  county  a  sufficient number of competent
26    skilled laborers, workers  and  mechanics  to  construct  the
27    public  works  efficiently  and properly, "locality" includes
28    any other county  nearest  the  one  in  which  the  work  or
29    construction  is  to be performed and from which such persons
30    may be obtained in sufficient numbers to perform the work and
31    (2) that, with respect to contracts for highway work with the
32    Department of Transportation of this State, "locality" may at
33    the  discretion  of  the  Secretary  of  the  Department   of
34    Transportation  be  construed to include two or more adjacent
 
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 1    counties from which workers may be  accessible  for  work  on
 2    such construction.
 3        "Public  body"  means  the State or any officer, board or
 4    commission of the  State  or  any  political  subdivision  or
 5    department  thereof, or any institution supported in whole or
 6    in part by public  funds,  authorized  by  law  to  construct
 7    public   works   or  to  enter  into  any  contract  for  the
 8    construction of public  works,  and  includes  every  county,
 9    city,  town,  village, township, school district, irrigation,
10    utility, reclamation improvement or other district and  every
11    other  political subdivision, district or municipality of the
12    state whether such  political  subdivision,  municipality  or
13    district operates under a special charter or not.
14        The  terms  "general  prevailing  rate  of hourly wages",
15    "general prevailing rate of wages"  or  "prevailing  rate  of
16    wages"  when used in this Act mean the hourly cash wages plus
17    fringe benefits  for  training  and  apprenticeship  programs
18    approved   by   the  U.S.  Department  of  Labor,  Bureau  of
19    Apprenticeship and Training, health and  welfare,  insurance,
20    vacations  and  pensions  paid  generally, in the locality in
21    which the work is being performed, to  employees  engaged  in
22    work of a similar character on public works.
23    (Source: P.A.  91-105,  eff.  1-1-00;  91-935,  eff.  6-1-01;
24    92-16, eff. 6-28-01.)

25        (820 ILCS 130/3) (from Ch. 48, par. 39s-3)
26        Sec.  3.   Not  less  than the general prevailing rate of
27    hourly wages for work of a similar character on public  works
28    in  the locality in which the work is performed, and not less
29    than the general prevailing rate of hourly  wages  for  legal
30    holiday  and  overtime  work,  shall be paid to all laborers,
31    workers and mechanics employed by or on behalf of any  public
32    body  engaged  in the construction of public works. Only such
33    laborers, workers and mechanics as are directly  employed  by
 
                            -8-      LRB093 02098 SJM 16676 a
 1    contractors  or subcontractors in actual construction work on
 2    the site of the building or construction job,  and  laborers,
 3    workers  and  mechanics  engaged  in  the  transportation  of
 4    materials  and  equipment  to  or  from  the  site,  but  not
 5    including  the transportation by the sellers and suppliers or
 6    the manufacture or processing of materials or  equipment,  in
 7    the  execution  of any contract or contracts for public works
 8    with any public body shall be  deemed  to  be  employed  upon
 9    public works. The wage for a tradesman performing maintenance
10    is equivalent to that of a tradesman engaged in construction.
11    (Source: P.A. 83-443.)

12        (820 ILCS 130/4) (from Ch. 48, par. 39s-4)
13        Sec.  4. The public body awarding any contract for public
14    work  or  otherwise  undertaking  any  public  works,   shall
15    ascertain  the general prevailing rate of hourly wages in the
16    locality in which the work is to be performed, for each craft
17    or type of worker or mechanic needed to execute the contract,
18    and where the public body performs the work without letting a
19    contract therefor, shall ascertain  the  prevailing  rate  of
20    wages  on  a  per hour basis in the locality, and such public
21    body shall specify in the resolution or ordinance and in  the
22    call  for  bids for the contract, that the general prevailing
23    rate of wages in the locality  for  each  craft  or  type  of
24    worker  or mechanic needed to execute the contract or perform
25    such work, also the general prevailing rate for legal holiday
26    and overtime work, as ascertained by the public  body  or  by
27    the  Department of Labor shall be paid for each craft or type
28    of worker needed to execute the contract or to  perform  such
29    work,  and  it shall be mandatory upon the contractor to whom
30    the contract is awarded and upon any subcontractor under him,
31    and where the public body performs the work, upon the  public
32    body,  to  pay  not  less  than  the  specified  rates to all
33    laborers, workers and  mechanics  employed  by  them  in  the
 
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 1    execution  of  the  contract or such work; provided, however,
 2    that if the public body desires that the Department of  Labor
 3    ascertain  the  prevailing rate of wages, it shall notify the
 4    Department of Labor to ascertain the general prevailing  rate
 5    of  hourly  wages  for  work  under  contract,  or  for  work
 6    performed  by  a  public  body  without letting a contract as
 7    required  in  the  locality  in  which  the  work  is  to  be
 8    performed, for each craft  or  type  of  worker  or  mechanic
 9    needed  to  execute  the  contract  or  project or work to be
10    performed. Upon such notification  the  Department  of  Labor
11    shall  ascertain  such  general prevailing rate of wages, and
12    certify the prevailing wage to such public body.  The  public
13    body  awarding the contract shall cause to be inserted in the
14    contract a stipulation to the effect that not less  than  the
15    prevailing  rate  of  wages  as  found  by the public body or
16    Department of Labor or determined  by  the  court  on  review
17    shall   be  paid  to  all  laborers,  workers  and  mechanics
18    performing work under the contract. It shall also require  in
19    all  such contractor's bonds that the contractor include such
20    provision as will guarantee the faithful performance of  such
21    prevailing  wage  clause  as  provided  by contract.  All bid
22    specifications  shall  list  the  specified  rates   to   all
23    laborers,  workers  and  mechanics  in  the locality for each
24    craft or type of worker or mechanic  needed  to  execute  the
25    contract.   If the Department of Labor revises the prevailing
26    rate of hourly wages to be  paid  by  the  public  body,  the
27    revised  rate  shall  apply  to such contract, and the public
28    body shall be responsible to notify the contractor  and  each
29    subcontractor, of the revised rate. Two or more investigatory
30    hearings  under  this  Section on the issue of establishing a
31    new prevailing wage classification for a particular craft  or
32    type  of  worker  shall  be  consolidated in a single hearing
33    before  the  Department.   Such  consolidation  shall   occur
34    whether each separate investigatory hearing is conducted by a
 
                            -10-     LRB093 02098 SJM 16676 a
 1    public  body  or  the  Department.  The  party  requesting  a
 2    consolidated  investigatory  hearing shall have the burden of
 3    establishing  that  there  is  no  existing  prevailing  wage
 4    classification for the particular craft or type of worker  in
 5    any of the localities under consideration.
 6        It shall be mandatory upon the contractor or construction
 7    manager  to  whom  a  contract for public works is awarded to
 8    post, at a location on the project site of the  public  works
 9    that  is  easily  accessible  to  the  workers engaged on the
10    project, the prevailing wage rates for each craft or type  of
11    worker  or mechanic needed to execute the contract or project
12    or work to be performed. A failure to post a prevailing  wage
13    rate as required by this Section is a violation of this Act.
14    (Source: P.A. 92-783, eff. 8-6-02.)

15        Section  99.  Effective date.  This Act takes effect upon
16    becoming law.".