Rep. Jay Hoffman

Filed: 3/18/2013

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 1161

2    AMENDMENT NO. ______. Amend House Bill 1161 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Prevailing Wage Act is amended by changing
5Sections 2 and 4 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; or funds from the
11Fund for Illinois' Future under Section 6z-47 of the State
12Finance Act, funds for school construction under Section 5 of
13the General Obligation Bond Act, funds authorized under Section
143 of the School Construction Bond Act, funds for school
15infrastructure under Section 6z-45 of the State Finance Act,
16and funds for transportation purposes under Section 4 of the
17General Obligation Bond Act. "Public works" also includes (i)
18all projects financed in whole or in part with funds from the
19Department of Commerce and Economic Opportunity under the
20Illinois Renewable Fuels Development Program Act for which
21there is no project labor agreement; (ii) all work performed
22pursuant to a public private agreement under the Public Private
23Agreements for the Illiana Expressway Act; and (iii) all
24projects undertaken under a public-private agreement under the
25Public-Private Partnerships for Transportation Act. "Public
26works" also includes all projects at leased facility property

 

 

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1used for airport purposes under Section 35 of the Local
2Government Facility Lease Act. "Public works" also includes the
3construction of a new wind power facility by a business
4designated as a High Impact Business under Section 5.5(a)(3)(E)
5of the Illinois Enterprise Zone Act. "Public works" does not
6include work done directly by any public utility company,
7whether or not done under public supervision or direction, or
8paid for wholly or in part out of public funds. "Public works"
9does not include projects undertaken by the owner at an
10owner-occupied single-family residence or at an owner-occupied
11unit of a multi-family residence.
12    "Construction" means all work on public works involving
13laborers, workers or mechanics. This includes any maintenance,
14repair, assembly, or disassembly work performed on equipment
15whether owned, leased, or rented.
16    "Locality" means the county where the physical work upon
17public works is performed, except (1) that if there is not
18available in the county a sufficient number of competent
19skilled laborers, workers and mechanics to construct the public
20works efficiently and properly, "locality" includes any other
21county nearest the one in which the work or construction is to
22be performed and from which such persons may be obtained in
23sufficient numbers to perform the work and (2) that, with
24respect to contracts for highway work with the Department of
25Transportation of this State, "locality" may at the discretion
26of the Secretary of the Department of Transportation be

 

 

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1construed to include two or more adjacent counties from which
2workers may be accessible for work on such construction.
3    "Public body" means the State or any officer, board or
4commission of the State or any political subdivision or
5department thereof, or any institution supported in whole or in
6part by public funds, and includes every county, city, town,
7village, township, school district, irrigation, utility,
8reclamation improvement or other district and every other
9political subdivision, district or municipality of the state
10whether such political subdivision, municipality or district
11operates under a special charter or not.
12    The terms "general prevailing rate of hourly wages",
13"general prevailing rate of wages" or "prevailing rate of
14wages" when used in this Act mean the hourly cash wages plus
15fringe benefits for training and apprenticeship programs
16approved by the U.S. Department of Labor, Bureau of
17Apprenticeship and Training, health and welfare, insurance,
18vacations and pensions paid generally, in the locality in which
19the work is being performed, to employees engaged in work of a
20similar character on public works.
21    "Responsible bidder" means those individuals or firms
22meeting the requirements of Section 30-22 of the Illinois
23Procurement Code.
24(Source: P.A. 96-28, eff. 7-1-09; 96-58, eff. 1-1-10; 96-186,
25eff. 1-1-10; 96-913, eff. 6-9-10; 96-1000, eff. 7-2-10; 97-502,
26eff. 8-23-11.)
 

 

 

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1    (820 ILCS 130/4)  (from Ch. 48, par. 39s-4)
2    Sec. 4. Ascertaining prevailing wage.
3    (a) The public body awarding any contract for public work
4or otherwise undertaking any public works, shall ascertain the
5general prevailing rate of hourly wages in the locality in
6which the work is to be performed, for each craft or type of
7worker or mechanic needed to execute the contract, and where
8the public body performs the work without letting a contract
9therefor, shall ascertain the prevailing rate of wages on a per
10hour basis in the locality, and such public body shall specify
11in the resolution or ordinance and in the call for bids for the
12contract, that the general prevailing rate of wages in the
13locality for each craft or type of worker or mechanic needed to
14execute the contract or perform such work, also the general
15prevailing rate for legal holiday and overtime work, as
16ascertained by the public body or by the Department of Labor
17shall be paid for each craft or type of worker needed to
18execute the contract or to perform such work, and it shall be
19mandatory upon the contractor to whom the contract is awarded
20and upon any subcontractor under him, and where the public body
21performs the work, upon the public body, to pay not less than
22the specified rates to all laborers, workers and mechanics
23employed by them in the execution of the contract or such work;
24provided, however, that if the public body desires that the
25Department of Labor ascertain the prevailing rate of wages, it

 

 

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1shall notify the Department of Labor to ascertain the general
2prevailing rate of hourly wages for work under contract, or for
3work performed by a public body without letting a contract as
4required in the locality in which the work is to be performed,
5for each craft or type of worker or mechanic needed to execute
6the contract or project or work to be performed. Upon such
7notification the Department of Labor shall ascertain such
8general prevailing rate of wages, and certify the prevailing
9wage to such public body.
10    (a-0.5) To effectuate the purpose and policy of this Act, a
11public body awarding a contract for public work or otherwise
12undertaking any public works shall specify in the call for bids
13and shall require that each bidder be a responsible bidder.
14    (a-0.7) A public body awarding a contract for public work
15or otherwise undertaking any public works shall require that
16each bidder include in each bid an estimated total number of
17straight-time work hours to be performed by minorities and
18females, as defined in the Business Enterprise for Minorities,
19Females, and Persons with Disabilities Act, for each craft or
20type of worker or mechanic needed to execute the contract.
21    (a-1) The public body or other entity awarding the contract
22shall cause to be inserted in the project specifications and
23the contract a stipulation to the effect that not less than the
24prevailing rate of wages as found by the public body or
25Department of Labor or determined by the court on review shall
26be paid to all laborers, workers and mechanics performing work

 

 

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

 

 

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

 

 

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

 

 

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1for the project. The failure to provide written notice by a
2public body, other entity, or contractor does not diminish the
3right of a laborer, worker, or mechanic to the prevailing rate
4of wages as determined under this Act.
5    (c) A public body or other entity shall also require in all
6contractor's and subcontractor's bonds that the contractor or
7subcontractor include such provision as will guarantee the
8faithful performance of such prevailing wage clause as provided
9by contract or other written instrument. All bid specifications
10shall list the specified rates to all laborers, workers and
11mechanics in the locality for each craft or type of worker or
12mechanic needed to execute the contract.
13    (d) If the Department of Labor revises the prevailing rate
14of hourly wages to be paid by the public body or other entity,
15the revised rate shall apply to such contract, and the public
16body or other entity shall be responsible to notify the
17contractor and each subcontractor, of the revised rate.
18    The public body or other entity shall discharge its duty to
19notify of the revised rates by inserting a written stipulation
20in all contracts or other written instruments that states the
21prevailing rate of wages are revised by the Department of Labor
22and are available on the Department's official website. This
23shall be deemed to be proper notification of any rate changes
24under this subsection.
25    (e) Two or more investigatory hearings under this Section
26on the issue of establishing a new prevailing wage

 

 

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