HB0924ham002 98TH GENERAL ASSEMBLY

Rep. Jay Hoffman

Filed: 4/17/2013

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 924

2    AMENDMENT NO. ______. Amend House Bill 924 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Prevailing Wage Act is amended by changing
5Sections 2, 4, and 5 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-1) The public body or other entity awarding the contract
15shall cause to be inserted in the project specifications and
16the contract a stipulation to the effect that not less than the
17prevailing rate of wages as found by the public body or
18Department of Labor or determined by the court on review shall
19be paid to all laborers, workers and mechanics performing work
20under the contract.
21    (a-2) When a public body or other entity covered by this
22Act has awarded work to a contractor without a public bid,
23contract or project specification, such public body or other
24entity shall comply with subsection (a-1) by providing the
25contractor with written notice on the purchase order related to
26the work to be done or on a separate document indicating that

 

 

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1not less than the prevailing rate of wages as found by the
2public body or Department of Labor or determined by the court
3on review shall be paid to all laborers, workers, and mechanics
4performing work on the project.
5    (a-3) Where a complaint is made and the Department of Labor
6determines that a violation occurred, the Department of Labor
7shall determine if proper written notice under this Section 4
8was given. If proper written notice was not provided to the
9contractor by the public body or other entity, the Department
10of Labor shall order the public body or other entity to pay any
11interest, penalties or fines that would have been owed by the
12contractor if proper written notice were provided. The failure
13by a public body or other entity to provide written notice does
14not relieve the contractor of the duty to comply with the
15prevailing wage rate, nor of the obligation to pay any back
16wages, as determined under this Act. For the purposes of this
17subsection, back wages shall be limited to the difference
18between the actual amount paid and the prevailing rate of wages
19required to be paid for the project. The failure of a public
20body or other entity to provide written notice under this
21Section 4 does not diminish the right of a laborer, worker, or
22mechanic to the prevailing rate of wages as determined under
23this Act.
24    (b) It shall also be mandatory upon the contractor to whom
25the contract is awarded to insert into each subcontract and
26into the project specifications for each subcontract a written

 

 

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1stipulation to the effect that not less than the prevailing
2rate of wages shall be paid to all laborers, workers, and
3mechanics performing work under the contract. It shall also be
4mandatory upon each subcontractor to cause to be inserted into
5each lower tiered subcontract and into the project
6specifications for each lower tiered subcontract a stipulation
7to the effect that not less than the prevailing rate of wages
8shall be paid to all laborers, workers, and mechanics
9performing work under the contract. A contractor or
10subcontractor who fails to comply with this subsection (b) is
11in violation of this Act.
12    (b-1) When a contractor has awarded work to a subcontractor
13without a contract or contract specification, the contractor
14shall comply with subsection (b) by providing a subcontractor
15with a written statement indicating that not less than the
16prevailing rate of wages shall be paid to all laborers,
17workers, and mechanics performing work on the project. A
18contractor or subcontractor who fails to comply with this
19subsection (b-1) is in violation of this Act.
20    (b-2) Where a complaint is made and the Department of Labor
21determines that a violation has 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 subcontractor by the contractor, the Department of Labor
25shall order the contractor to pay any interest, penalties, or
26fines that would have been owed by the subcontractor if proper

 

 

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1written notice were provided. The failure by a contractor to
2provide written notice to a subcontractor does not relieve the
3subcontractor of the duty to comply with the prevailing wage
4rate, nor of the obligation to pay any back wages, as
5determined under this Act. For the purposes of this subsection,
6back wages shall be limited to the difference between the
7actual amount paid and the prevailing rate of wages required
8for the project. However, if proper written notice was not
9provided to the contractor by the public body or other entity
10under this Section 4, the Department of Labor shall order the
11public body or other entity to pay any interest, penalties, or
12fines that would have been owed by the subcontractor if proper
13written notice were provided. The failure by a public body or
14other entity to provide written notice does not relieve the
15subcontractor of the duty to comply with the prevailing wage
16rate, nor of the obligation to pay any back wages, as
17determined under this Act. For the purposes of this subsection,
18back wages shall be limited to the difference between the
19actual amount paid and the prevailing rate of wages required
20for the project. The failure to provide written notice by a
21public body, other entity, or contractor does not diminish the
22right of a laborer, worker, or mechanic to the prevailing rate
23of wages as determined under this Act.
24    (c) A public body or other entity shall also require in all
25contractor's and subcontractor's bonds that the contractor or
26subcontractor include such provision as will guarantee the

 

 

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1faithful performance of such prevailing wage clause as provided
2by contract or other written instrument. All bid specifications
3shall list the specified rates to all laborers, workers and
4mechanics in the locality for each craft or type of worker or
5mechanic needed to execute the contract.
6    (d) If the Department of Labor revises the prevailing rate
7of hourly wages to be paid by the public body or other entity,
8the revised rate shall apply to such contract, and the public
9body or other entity shall be responsible to notify the
10contractor and each subcontractor, of the revised rate.
11    The public body or other entity shall discharge its duty to
12notify of the revised rates by inserting a written stipulation
13in all contracts or other written instruments that states the
14prevailing rate of wages are revised by the Department of Labor
15and are available on the Department's official website. This
16shall be deemed to be proper notification of any rate changes
17under this subsection.
18    (e) Two or more investigatory hearings under this Section
19on the issue of establishing a new prevailing wage
20classification for a particular craft or type of worker shall
21be consolidated in a single hearing before the Department. Such
22consolidation shall occur whether each separate investigatory
23hearing is conducted by a public body or the Department. The
24party requesting a consolidated investigatory hearing shall
25have the burden of establishing that there is no existing
26prevailing wage classification for the particular craft or type

 

 

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1of worker in any of the localities under consideration.
2    (f) It shall be mandatory upon the contractor or
3construction manager to whom a contract for public works is
4awarded to post, at a location on the project site of the
5public works that is easily accessible to the workers engaged
6on the project, the prevailing wage rates for each craft or
7type of worker or mechanic needed to execute the contract or
8project or work to be performed. In lieu of posting on the
9project site of the public works, a contractor which has a
10business location where laborers, workers, and mechanics
11regularly visit may: (1) post in a conspicuous location at that
12business the current prevailing wage rates for each county in
13which the contractor is performing work; or (2) provide such
14laborer, worker, or mechanic engaged on the public works
15project a written notice indicating the prevailing wage rates
16for the public works project. A failure to post or provide a
17prevailing wage rate as required by this Section is a violation
18of this Act.
19(Source: P.A. 96-437, eff. 1-1-10; 97-964, eff. 1-1-13.)
 
20    (820 ILCS 130/5)  (from Ch. 48, par. 39s-5)
21    Sec. 5. Certified payroll.
22    (a) Any contractor and each subcontractor who participates
23in public works shall:
24        (1) make and keep, for a period of not less than 3
25    years from the date of the last payment on a contract or

 

 

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1    subcontract for public works, records of all laborers,
2    mechanics, and other workers employed by them on the
3    project; the records shall include each worker's name,
4    address, telephone number when available, social security
5    number, classification or classifications, the hourly
6    wages paid in each pay period, the number of hours worked
7    each day, and the starting and ending times of work each
8    day; and
9        (2) no later than the tenth day of each calendar month
10    file a certified payroll for the immediately preceding
11    month with the public body in charge of the project. A
12    certified payroll must be filed for only those calendar
13    months during which construction on a public works project
14    has occurred. The certified payroll shall consist of a
15    complete copy of the records identified in paragraph (1) of
16    this subsection (a), but may exclude the starting and
17    ending times of work each day. The certified payroll shall
18    be accompanied by a statement signed by the contractor or
19    subcontractor or an officer, employee, or agent of the
20    contractor or subcontractor which avers that: (i) he or she
21    has examined the certified payroll records required to be
22    submitted by the Act and such records are true and
23    accurate; (ii) the hourly rate paid to each worker is not
24    less than the general prevailing rate of hourly wages
25    required by this Act; and (iii) the contractor or
26    subcontractor is aware that filing a certified payroll that

 

 

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1    he or she knows to be false is a Class A misdemeanor. A
2    general contractor is not prohibited from relying on the
3    certification of a lower tier subcontractor, provided the
4    general contractor does not knowingly rely upon a
5    subcontractor's false certification. Any contractor or
6    subcontractor subject to this Act and any officer,
7    employee, or agent of such contractor or subcontractor
8    whose duty as such officer, employee, or agent it is to
9    file such certified payroll who willfully fails to file
10    such a certified payroll on or before the date such
11    certified payroll is required by this paragraph to be filed
12    and any person who willfully files a false certified
13    payroll that is false as to any material fact is in
14    violation of this Act and guilty of a Class A misdemeanor.
15    The public body in charge of the project shall keep the
16    records submitted in accordance with this paragraph (2) of
17    subsection (a) for a period of not less than 3 years from
18    the date of the last payment for work on a contract or
19    subcontract for public works. The records submitted in
20    accordance with this paragraph (2) of subsection (a) shall
21    be considered public records, except an employee's
22    address, telephone number, and social security number, and
23    made available in accordance with the Freedom of
24    Information Act. The public body shall accept any
25    reasonable submissions by the contractor that meet the
26    requirements of this Section; and .

 

 

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1        (3) identify and report to the public body in charge of
2    the project the number of hours worked by minorities and
3    females, as defined in the Illinois Human Rights Act, for
4    each craft or type of worker or mechanic needed to execute
5    the contract. Each contractor and subcontractor shall
6    provide this information on a certified payroll report, or
7    on a monthly manpower utilization report.
8    (b) Upon 7 business days' notice, the contractor and each
9subcontractor shall make available for inspection and copying
10at a location within this State during reasonable hours, the
11records identified in paragraph (1) of subsection (a) of this
12Section to the public body in charge of the project, its
13officers and agents, the Director of Labor and his deputies and
14agents, and to federal, State, or local law enforcement
15agencies and prosecutors.
16    (c) No later than October 1 of each year, the following
17State agencies shall submit a report to the General Assembly
18compiling the total number of hours worked during the
19immediately preceding fiscal year by minorities and females as
20reported in accordance with subsection (a): the Illinois
21Capital Development Board, Illinois Department of
22Transportation, and Illinois State Toll Highway Authority.
23This report shall be filed as provided in Section 3.1 of the
24General Assembly Organization Act.
25(Source: P.A. 97-571, eff. 1-1-12.)".