Illinois General Assembly - Full Text of HB4600
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Full Text of HB4600  102nd General Assembly

HB4600sam002 102ND GENERAL ASSEMBLY

Sen. Cristina Castro

Filed: 4/6/2022

 

 


 

 


 
10200HB4600sam002LRB102 23985 SPS 38898 a

1
AMENDMENT TO HOUSE BILL 4600

2    AMENDMENT NO. ______. Amend House Bill 4600 by replacing
3everything after the enacting clause with the following:
 
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

 

 

10200HB4600sam002- 2 -LRB102 23985 SPS 38898 a

1    Representatives;
2        (5) 2 members appointed by the Minority Leader of the
3    House of Representatives;
4        (6) 2 members appointed by the President of the
5    Senate;
6        (7) 2 members appointed by the Minority Leader of the
7    Senate; and
8        (8) 7 members representing the construction industry
9    appointed by the Governor.
10    The Department of Transportation shall provide
11administrative support to the Task Force.
12    (b) The Task Force shall study innovative ways to reduce
13the cost of insurance in the private and public construction
14industry while protecting owners from risk of nonperformance.
15The Task Force shall consider options that include, but are
16not limited to, owner-financed insurance instead of
17contractor-financed insurance and alternative ways to manage
18risk other than bonds or other insurance products.
19    (c) The Task Force shall report its findings and
20recommendations to the General Assembly no later than March 1,
212023.
22    (d) This Section is repealed December 31, 2023.
 
23    Section 10. If and only if House Bill 5412 of the 102nd
24General Assembly becomes law, then the Illinois Wage Payment
25and Collection Act is amended by changing Section 13.5 as

 

 

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1follows:
 
2    (820 ILCS 115/13.5)
3    Sec. 13.5. Primary contractor responsibility for wage
4claims in construction industry.
5    (a) For all contracts entered into on or after July 1,
62022, a primary contractor making or taking a contract in the
7State for the erection, construction, alteration, or repair of
8a building, structure, or other private work in the State
9where the aggregate costs of the project exceed $20,000 ,
10shall assume, and is liable for, any debt owed to a claimant
11under this Section or to a third party on a wage claimant's
12behalf incurred pursuant to this Act by a subcontractor at any
13tier acting under, by, or for the primary contractor for the
14wage claimant's performance of labor included in the subject
15of the contract between the primary contractor and the owner.
16This Section does not apply to work performed by a contractor
17of the federal government, the State, a special district, a
18city, a county, or any political subdivision of the State.
19    (b) As used in this Section:
20    "Construction" means building, altering, repairing,
21improving, or demolishing any structure or building or making
22improvements of any kind to real property.
23    "Primary contractor" means a contractor that has a direct
24contractual relationship with a property owner. "Primary
25contractor" may have the same meaning as a "general

 

 

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1contractor", "prime contractor", or "construction manager". A
2property owner who acts as a primary contractor related to the
3erection, construction, alteration, or repair of his or her
4primary residence shall be exempt from liability under this
5Section.
6    "Private work" means any erection, construction,
7alteration, or repair of a building, structure, or other work.
8    "Subcontractor" means a contractor that has a contractual
9relationship with the primary contractor or with another
10subcontractor at any tier, who furnishes any goods or services
11in connection with the contract between the primary contractor
12and the property owner, but does not include contractors who
13solely provide goods and transport of such goods related to
14the contract.
15    (c) The primary contractor's liability under this Section
16shall extend only to any unpaid wages or fringe or other
17benefit payments or contributions, including interest owed,
18penalties assessed by the Department, and reasonable
19attorney's fees, but shall not extend to liquidated damages.
20    (d) A primary contractor or any other person shall not
21evade or commit any act that negates the requirements of this
22Section. Except as otherwise provided in a contract between
23the primary contractor and the subcontractor, the
24subcontractor shall indemnify the primary contractor for any
25wages, fringe or other benefit payments or contributions,
26damages, interest, penalties, or attorney's fees owed as a

 

 

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1result of the subcontractor's failure to pay wages or fringe
2or other benefit payments or contributions as provided in this
3Section, unless the subcontractor's failure to pay was due to
4the primary contractor's failure to pay moneys due to the
5subcontractor in accordance with the terms of their
6contractual relationship.
7    (e) Nothing in this Section shall supersede or modify the
8obligations and liability that any primary contractor,
9subcontractor, or property owner may bear as an employer under
10this Act or any other applicable law. The obligations and
11remedies provided in this Section shall be in addition to any
12obligations and remedies otherwise provided by law. Nothing in
13this Section shall be construed to impose liability on a
14primary contractor for anything other than unpaid wages,
15fringe or other benefit payments or contributions, penalties
16assessed by the Department, interest owed, and reasonable
17attorney's fees.
18    (f) Claims brought pursuant to this Section shall be done
19so in accordance with Section 11 and 11.5 of this Act. Nothing
20in this Section shall be construed to provide a third party
21with the right to file a complaint with the Department
22alleging violation of this Section.
23    (g) The following shall be exempt from liability under
24this Section:
25        (1) primary contractors who are parties to a
26    collective bargaining agreement on the project where the

 

 

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1    work is being performed; and
2        (2) primary contractors making or taking a contract in
3    the State for the alteration or repair of an existing
4    single-family dwelling or to a single residential unit in
5    an existing multi-unit structure. Primary contractors who
6    are parties to a collective bargaining agreement on the
7    project where the work is being performed shall be exempt
8    from this Section.
9    (h) Prior to the commencement of any civil action, a
10claimant or a representative of a claimant shall provide
11written notice to the employer and to the primary contractor
12detailing the nature and basis for the claim. Failure of the
13employer or the primary contractor to resolve the claim within
1410 days after receipt of this notice, or during any agreed upon
15period extending this deadline, may result in the filing of a
16civil action to enforce the provisions of this Act.
17    (i) Claims brought pursuant to this Section shall be filed
18with the Department of Labor or filed with the circuit court
19within 3 years after the wages, final compensation, or wage
20supplements were due. This subsection does not apply to any
21other claims under this Act or any other applicable law
22against a primary contractor, subcontractor, or homeowner as
23an employer.
24(Source: 10200HB5412eng.)
 
25    Section 99. Effective date. This Act takes effect upon

 

 

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1becoming law or on the date House Bill 5412 of the 102nd
2General Assembly takes effect, whichever is later.".