Legislation

Update on Legislation

Structural Work Act

After much concern in mid-April about the re-emergence of the Structural Work Act, the bill was heard in committee and on a strictly partisan vote.  The Democratic controlled committee moved the bill quickly to the House floor.  In the final days of session, it appeared that there were not enough votes to pass the bill in the house, so it was never called for a vote.  The bill could still be passed in the fall session so we can't relax!  Members should make it a point to tell all DEMOCRATIC members of the legislature that we are opposed to this type of legislation.  The Republican caucus in both chambers is opposed to this bill 100%.

Employee Classification Act

Source: IL Department of Labor

The IL Dept. of Labor is reminding all interested parties in the construction industry about the new Employee Classification Act, which takes effect on January 1, 2008.  This new law, which was passed by the General Assembly and signed by Governor Blagojevich last summer, seeks to ensure that workers in the construction industry are offered protections under numerous labor laws, including minimum wage, overtime, unemployment insurance and workers' compensation and are not misclassified as indepedent contractors in order to avoid tax and labor law obligations.

The new law applies to all construction work performed within Illinois, including but not limited to public and private construction, residential and commercial building, maintenance, renovation and repair work, landscpaing, painting and decorating work and the transportation of construction-related materials to or from the job site.  The law presumes an individual performing services for a contractor is an employee unless the following criteria (known as the ABC test) are met: the individual is free from direction or control over the performance of the service for the contractor; the service performed is outside the usual course of services of the contractor and individual is in an independently established trade, occupation, profession or business.  Exceptions to the ABC test are made for legitimate sole proprietors or partnerships that meet all 12 conditions specified in the Act.

The Illinois Department of Labor is charged with enforcing the Employee Classification Act and has been hard at work for the past 5 months drafting new rules to implement the law; establishing internal procedures for investigating and processing complaints; creating printed materials and forms and, most importantly, educating ourselves and staff who will be responsible for administering this major new law.  The Department has added a page to our website regarding the Employee Classification Act, which currently includes copies of the law, the Department's emergency rules, complaint forms, fact sheets and posters in English, Spanish and Polish.  A link can be found at: www.state.il.us/agency/idol/Laws/Law185.hym.

Smoke Free Illinois Act

On January 1, 2008 the Smoke Free Illinois Act (PA 095-0017) took effect.  Section 15 of the Act states:

Smoking in public places, places of employment, and governmental vehicles prohibited.  No person shall smoke in a public place or in any place of employment or within 15 feet of any entrance to a public place or place of employment.  No person may smoke in any vehicle owned, leased, or operated by the State or a political subdivision of the State.  Smoking is prohibited in indoor public places and workplaces unless specifically exempted by Section 35 of this Act.

There are fines for both the offender and the owner of an establishment, and they will increase with each offense.  Local public health departments and local law enforcement agencies are to enforce this Act.

Section 35 of the Act sets forth the exemptions.  Generally speaking, they include private residences or dwelling places, retail tobacco stores, private and semi-private rooms in nursing homes and designated smoking rooms in hotels and motels.

As with any new law, the interpretations can vary and all of us will have a better understanding of it over time.  If you would like a copy of the Act, call the PCA office at 312-563-9526.

Revised February 26, 2008

SOURCE:  Illinois Association Plumbing, Heating, Cooling Contractors

Plumbing/Piping Related Bills:

HB 4280 (S. Cole) Provides for an income tax credit for taxpayers who install, on a building or property that is owned by the taxpayer and that is located in the State, a geothermal, solar, wind, or fuel cell energy device. House Rules.

HB 4339 (E. Acevedo) Creates the Heat & Frost Insulators License. Contains only a short title provision.  House Rules Committee.

HB 4367 (M. Tryon) Amends the Water Well Construction Code to state that beginning January 1, 2009, the Department of Public Health shall issue permits for the construction and modification of closed loop well systems and shall require a one-time permit fee. Sets forth the purposes for which water well and closed loop well system construction permit fees shall be used. Provides for the certification and registration of closed loop contractors by the Department. Referred to House Rules Committee.

HB 4671 (L. Arroyo) Provides that the seller of residential property shall have the sewer line from the property to the sewer main, or in the case of a septic system to the septic tank, inspected by a licensed plumber using video camera inspection technology and shall attach a copy of the licensed plumber's written dated inspection report to the disclosure report. Provides that the seller's disclosure statement is based on the actual knowledge of the seller without any specific investigation, except for the licensed plumber sewer line inspection (instead of without any specific investigation).  House Rules Committee.

HB 4685 (D. Moffitt) Provides for a tax credit for taxpayers who install on a building or property that is owned by the taxpayer and that is located in the State, a geothermal energy device and sets the amount of the credit at the lesser of (i) $5,000 or (ii) 50% of the actual cost of the acquisition and installation of the device. Referred to House Rules.

HB 4729 (E. Acevedo) Creates the Thermal System Insulation and Fire-stop Contractor and Mechanic Licensing Act. Provides for the licensure of thermal system insulation (including pipes, fittings, valves, boilers, ductwork, etc.) and fire-stop contractors and mechanics by the Office of the State Fire Marshal.  Referred to House Rules.

HB 4735 (S. Mathias) Provides for a tax credit for taxpayers who install, on a building or property that is owned by the taxpayer and that is located in the State, a geothermal, solar, wind, or fuel cell energy device.  Referred to House Rules.

HB 4789 (K. May) Amends the Radon Industry Licensing Act to require the Illinois Emergency Management Agency, in coordination with the EPA and the Pollution Control Board, to adopt rules for radon control for all new residential buildings. Requires that these rules incorporate the radon control methods set forth in the International Residential Code.  Referred to House Rules.

HB 5183 (M. Madigan) Creates the Illinois Pipefitters Licensing Act.  House Rules.

HB 5258 (M. Fortner) Amends the Illinois Underground Utility Facilities Damage Prevention Act to requires that all new or replaced underground utility lines must be marked with detectable underground warning tape, which is able to be traced by inductive locating. Requires that the marking shall be buried as close to the ground surface as possible, or between 4 and 6 inches deep.  Referred to House Rules.

HB 5309 (R. Rita) Amends the Fire Sprinkler Contractor Licensing Act. House Rules.

HB 5517 (D. Burke) Creates a homestead improvement exemption for the installation and maintenance of a residential fire safety sprinkler system. Referred to House Rules.

SB 2441 (L. Bomke) Amends the Plumbing License Law to exclude installation and maintenance of water filtration units from the definition of plumbing.  Senate Rules.

SB 2456 (J. Cullerton) Changes the Energy Efficient Commercial Building Act to the Energy Efficient Building Act. Provides that the Code adopted under the Act applies to any new building or structure (rather than any commercial building or structure). Deletes language providing that residential buildings are exempt from the Code. Senate Rules.

SB 2514 (T. Link) Amends the Illinois Water Well Construction Code to provide that the Department of Public Health shall issue permits for the construction and modification of closed loop well systems. Provides for the certification and registration of closed loop contractors by the Department. Referred to Senate Rules.

SB 2599 (P. Althoff) Creates the Pool Contractors Licensing Act.  Senate Rules.

SB 2760 (M. Jacobs) Creates the Electricians Licensing Act.  Senate Rules.

HB 4307 (R. Eddy) With respect to school districts other than Chicago, requires that certain contracts involving an expenditure in excess of $25,000 or a lower amount as required by local policy (rather than $10,000) be awarded to the lowest responsible bidder. Makes changes concerning the exceptions to this requirement, including an exception for contracts for services of corporations possessing a high degree of professional skill where ability and fitness play an important part, contracts for food services, and contracts for repair, maintenance, remodeling, renovation, or construction involving an expenditure not to exceed $50,000 (rather than $20,000).  Assigned to House Elementary & Secondary Education Committee.

SB 1890 (W. Haine) Amends the Public Construction Bond Act to require surety bonds on public construction projects costing over $100,000 (now, over $5,000). With respect to bonds securing contracts between the CDB or a public institution of higher education and a contractor, requires that within 15 days after notice to the surety that the principal is in default, the surety must (i) complete the work using a contractor selected jointly with the obligee or (ii) provide the obligee the amount needed to complete the work, in excess of the unpaid contract balance and up to the penal sum of the bond.  Assigned to State Government and Veterans Affairs Committee.

HB 4580 (W. Black) Amends the Work Comp Act to make a technical change regarding the computation of time. Assigned to House Rules Committee.

HB 4587 (J. Franks) Creates the Residential Building General Contractor Act. Provides for the registration of residential building general contractors with the Department of Labor beginning January 1, 2009. Amends the State Finance Act to create the Residential Building Contractor Fund. Assigned to House Rules.

HB 4608 (D. Winters) Amends the Substance Abuse Prevention on Public Works Projects Act. Requires the substance abuse testing program of an employer to which the Act applies to include a 5 panel (instead of 9 panel) urine drug test. Provides that the Act does not apply to the extent there is a collective bargaining agreement in effect dealing with the subject matter of the Act.  Assigned to House Labor Committee.

HB 4668 (M. Davis) Amends the Environmental Protection Act to provides that all recycling centers within the State must require individuals who recycle copper to present a valid driver's license or State-issued identification card at the time of the transaction and must maintain a log of all copper recycling transactions.  House Rules.

HB 4794 (T. Schmitz) Amends the Local Government Prompt Payment Act. Provides that it is unlawful to withhold more than 5% retainage from payments earned by contractors and subcontractors for goods and services. Prohibits retainage if a payment bond has been furnished.  Referred to House Rules.

HB 4841 (J. Tracy) Creates the offense of copper burglary. Provides that a person commits copper burglary when, without the consent of the owner, he or she knowingly enters or remains upon any premises, easement, or right-of-way with intent to steal or remove, or aid or assist in stealing or removing, any copper or copper alloy, including without limitation any wire, cable, rod, or tubing.  Referred to House Rules.

SB 2004 (W. Haine) Provides that the county board of Madison County may require the registration of electrical contractors and may impose an annual registration fee of $25 on each registered contractor.  Referred to House Rules.

HB 4920 (L. Lang) Amends the Contractor Prompt Payment Act to provide that under a construction contract, it is unlawful to withhold more than 5% retainage on payments earned by contractors and subcontractors, and that upon completion of 50% of the work under the contract, retainage may not exceed 2.5%.  Referred to House Rules.

HB 4955 (S. Mendoza) Creates the Safe Housing Act. Provides that every permanent dwelling unit in the State must be constructed in accordance with the building code or codes adopted by the municipality or county in which the unit is located. Provides that if a permanent dwelling unit is not located in a municipality or county that has adopted a building code, it must at least have a foundation that meets certain standards. The Act does not apply to any permanent dwelling unit located in Chicago. House Rules.

HB 5060 (W. Mitchell) Amends the Employee Classification Act. Provides that the term "employee" does not include an individual who performs services as an operator of a truck, truck tractor, or tractor who meets certain conditions; i.e. owner/operator situations. Reduces the fines; repeals certain provisions, and further amends the Act.  Referred to House Rules.

HB 5113 (M. Boland) Creates the Green Buildings Act. Requires all new state-funded building construction and major renovations of existing state-owned facilities to seek LEED certification. Requires all construction and major renovation projects, regardless of size, to achieve the highest level of certification practical within the project budget.  Referred to House Rules.

SB 2129 (A. Wilhelmi) Amends the Illinois Underground Utility Facilities Damage Prevention Act. Contains provisions concerning a no show request initiated by an excavator through the State-Wide One-Call Notice System; concerning the initiation of an incomplete request by an excavator; concerning notice of a re-mark request by an excavator.. Adds certain requirements concerning nonemergency excavation or demolition. Contains provisions concerning the use of a joint meet; concerning a design stage request; concerning the requirements after contact is made between the facility owner or operator and the designer; concerning requests of drawings of the job site by the owner or operator. Adds language (1) providing that excavation shall cease in the area of the damage when the damaged facility is a threat to life or property or if otherwise required by law and (2) prohibiting the excavator from engaging in specified activities. Provides that every person that fails to provide notice and willfully fails to comply with other provisions of the Act shall be subject to specified penalties. Referred to Senate Rules.

SB 2174 (D. Koehler) Amends the Illinois Procurement Code with respect to the criteria for status as a responsible bidder on State construction contracts, adds requirements concerning contributions for employee health insurance, training, and pension or retirement benefits. Referred to Senate Rules.

SB 2203 (J. Cullerton) Amends the Illinois Procurement Code. Authorizes the CMS to establish various indefinite quantity, indefinite delivery master contracts for supplies and services awarded to multiple vendors. Senate Rules.

SB 2262 (W. Haine) Provides that with respect to employers correctly classified within the construction industry, the amount charged to the insured for workers' compensation and employers' liability insurance shall be based upon hours worked by employees not the wages or salaries paid to the employees. Referred Senate Rules.

SB 2375 (G. Forby) Amends the Prevailing Wage Act to include "contributions paid by an employer for substance abuse testing programs" in the definition of "general prevailing rate of hourly wages".  Referred to Senate Rules.

SB 2378 (D. Demuzio) Amends the Illinois Procurement Code to require that construction contract bidders and their subcontractors participate in federally approved and registered applicable apprenticeship and training programs; requirement encompasses all such programs for the crafts required to perform the project. Senate Rules.

HB 5224 (J. Sacia) Creates the Local Government Construction Contract Act. Requires that if a unit of local government or school district imposes responsible bidder requirements when procuring construction, the unit or district must provide notice of and a public hearing on the adoption of any guidelines implementing required participation in certain apprenticeship and training programs. Also, amends the Illinois Procurement Code. Referred to House Rules.

HB 5320 (J. Hamos) Creates the Healthy Workplace Act. Requires an employer to provide up to 7 sick days with pay during each 12-month period. House Rules.

HB 5424 (M. Madigan) Amends the Local Govn’t Prompt Pay Act.  House Rules.

HB 5606 (P. Bellock) Allows small business to take a tax credit for health care they provide for employees and their spouses and dependents.  Referred to House Rules.

HB 5734 (M. Smith) Amends the Procurement code to say that contractors or subs not complying with the provisions of the Act are subject to penalties, including disbarment. 

HB 659 (D. Brady) Requires that the State Treasurer develop, implement, and administer a program of low-interest loans to post-secondary educational institutions to assist with the cost of installing fire sprinklers in student dormitories.  On 2nd Reading in the House.

HB 712 (M. Tyron) Creates the Portable Toilet Regulatory Act. Contains only a short title provision.  Re-referred to House Rules.

HB 1479 (D. Burke) Amends the Fire Sprinkler Contractor Licensing Act. Provides that all design drawings and design specifications of engineered sprinkler systems must be stamped by a licensed professional engineer or a licensed architect.  This bill has been gutted by amendment and is on 2nd Reading in the House.

HB 2282 (Madigan, Currie, Jakobson) Amends the Restroom Access Act. Also see HB 2458.  Both on 2nd Reading in the House.

HB 2457 (Madigan, Currie, Flowers) Amends the Construction Site Temporary Restroom Facility Act.  On 2nd Reading in the House.

HB 3227 (T. Cross) Amends the Illinois Plumbing License Law. On 2nd Reading in the House.

HB 3256 (T. Cross) Amends the Water Well and Pump Installation Contractor's License Act.  On 2nd Reading in the House.

SB 354 (W. Brady) Amends the Plumbing License Law. Provides that nothing in the plumbing code promulgated by the Department of Public Health shall be construed to require the installation or provision of service sinks in office buildings. Re-referred to Senate Rules.

SB 465 (J. DeLeo) Amends the Construction Site Temporary Restroom Facility Act by making a technical change. Referred to Senate Rules.

SB 495 (A. Munoz) Amends the Fire Sprinkler Contractor Licensing Act to provide that all inspections and testing of existing fire sprinkler systems and control equipment must be performed by a licensee under the Act or an individual employed by a licensee.  Amended and passed in the Senate.  On 1st Reading in the House.

SB 730 (S. Garrett) Amends the Illinois Plumbing License Law to provide that all automatically operated lawn sprinkler systems shall have furnished and installed technology that inhibits or interrupts operation of the system during periods of sufficient moisture or rainfall.  Passed the Senate and referred to House Rules. 

HB 355 (T. Holbrook) Creates the Home Construction and Repair Fraud Act.  Re-referred to House Rules.

HB 359 (Chapa-LaVia) Creates the Painting, Drywall Finishing, and Glazing Contractor Licensing Act. Last year this bill was gutted to become a contractor licensing bill.  Re-referred to House Rules.

HB 373 & HB 474 (J. Franks) Creates the General Building Contractor Licensing Act. Provides for the licensure and regulation of general building contractors and specialty contractors.  Re-referred to House Rules.  474 was gutted by amendment and is on 2nd Reading in the House.

HB 374 (J. Franks) Creates the Illinois Family and Medical Leave Act. Contains provisions similar to those in the federal Family and Medical Leave Act of 1993, except that it applies to a son-in-law, daughter-in-law, father-in-law, or mother-in-law who has a serious health condition, and deletes or changes some of the other federal provisions.
On 3rd Reading in the House.

HB 555 (T. Holbrook) Amends the Construction Contract Indemnification for Negligence Act to provide that, in contracts or agreements for the listed types of construction, alteration, repair, or maintenance, any agreement to procure an insurance policy to indemnify or hold harmless another person from that person's own negligence is void as against public policy and wholly unenforceable.  Re-referred to House Rules.

HB 743 (J. Fritchey) Creates the Contractor Prompt Payment Act.  Applies to both contractors and subs, and is for all contracts, not just public.  Passed the House and is in Senate Rules Committee.

HB 830 (T. Schmitz) Amends the Mechanic Lien Act.  The proposed language made “pay if paid” clauses in construction contracts invalid and unenforceable.  This language was amended out and now contains other lien issues. Passed the House and is on 1st Reading in the Senate. 

HB 1105 (C. Gordon) Amends the Prevailing Wage Act. Provides that workers at a facility dedicated exclusively, or nearly so, to performance of the contract or project and located in such proximity to the actual construction location that it would be reasonable to include them, or that perform work specifically designated for installation on a public works project, shall be deemed to be employed on public works.   Amended and on 2nd Reading in the House.

HB 1114 (C. Gordon) Creates the Notice and Opportunity to Repair Act to provide that a construction professional shall be liable to a homeowner for damages caused by the acts or omissions of the professional and his or her agents, employees, or subcontractors. Allows the professional to offer repair or settlement.  Re-referred to House Rules. 

HB 1252 (P. Reid Lindner) Provides that a county may enter into certain contracts without advertising for bids if authorized by a vote of two-thirds of the members of the county board.  On 2nd Reading in the House.

HB 1795 (H. Osterman) Creates the Employee Classification Act. Provides that an individual performing services for a contractor is deemed to be an employee of the contractor unless it is shown that: (1) the individual has been and will continue to be free from control or direction over the performance of the service for the contractor, both under the individual's contract of service and in fact; (2) the service performed by the individual is outside the usual course of services performed by the contractor; and (3) the individual is engaged in an independently established trade, occupation, profession or business; or (4) the individual is deemed a legitimate sole proprietor or partnership. Provides that subcontractors or lower tiered contractors are subject to all provisions of the Act.  On calendar order of 3rd Reading in the House.

HB 1842 (J. Hamos) Changes the name of the Energy Efficient Commercial Building Act to the Energy Efficient Building Act. Applies the Act to all buildings not just commercial.  On 2nd Reading in the House.

HB 1849 (B. Phelps) Amends the School Code to exempts contracts awarded to a local contractor who is not the lowest responsible bidder, but who is a qualified bidder who has submitted a bid that does not exceed 2% over the lowest responsible bid received by the school board, from a school board's duty to award all contracts for purchase of supplies, materials, or work involving an expenditure in excess of $10,000 to the lowest responsible bidder.  On 2nd Reading in the House.

HB 1853 (P. Verschoore) Creates the Uniform Construction Code.  Re-referred to House Rules Committee.

HB 1855 (D. Winters) Creates the Substance Abuse Prevention on Public Works Act.  Held on 3rd Reading in the House.

HB 3216 (T. Cross) Amends the Home Repair and Remodeling Act. On calendar order of 2nd Reading in the House.

HB 3217 (T. Cross) Amends the Home Repair Fraud Act.  2nd Reading in the House.

HB 3490 (G. Harris) Amends the Public Building Commission Act to authorize the Commission to solicit and award design-build construction contracts. Amended to provide that the potential subcontractors who must be identified in a design-build proposal are the 5 subdivisions of construction work specified in Section 30-30 of the Illinois Procurement Code.  Placed on Calendar Order of 2nd Reading in the House.  

SB 155 (T. Link) Creates the Painting, Drywall Finishing, and Glazing Contractor Licensing Act. Similar to HB 359. Amended and on 3rd Reading in the Senate.

SB 330 (C. Pankau) Amends the Mechanics Lien Act. Provides that a person who would be entitled to a lien for furnishing materials or equipment for the construction upon or improvement to real property shall be entitled to a lien for the rental of materials or equipment used in that construction or improvement. Passed in the Senate and on Calendar Order of 1st Reading in the House. 

SB 579 (D. Demuzio) Creates the Contractor Licensing Act. Referred to Senate Rules. 

SB 633 (D. Harmon) Amends the Public Building Commission Act to authorize a Commission to solicit and award design-build construction contracts. Senate Rules.

SB 1176 (T. Link) Amends the Illinois Procurement Code. With respect to Capital Development Board construction contracts in excess of $250,000 during the next 5 years, provides that the requirement of separate bidding of 5 subdivisions of work does not apply.  IMSCA has negotiated with CDB and the Governor’s office to reach an agreement on language that will protect the multiple prime in all but about 5% of CDB projects.  Protections have been included to assure that there will not be abuse of the agreement.  SB 1176 is considered dead, but the negotiated language will hopefully be  amended on to another bill. 

SB 1257 (J. Clayborne, Jr.) Creates the Mold Remediation Registration Act.  Requires  IDPH to submit an annual report concerning the implementation of federal regs.  Authorizes the IDPH to adopt rules to implement a program establishing procedures to register parties that provide mold remediation services.  Passed in the Senate.

SB 1394 (E. Jones) Amends the Prevailing Wage Act. Provides that "public works" includes any construction, demolition, remediation, or renovation that requires a permit issued by the Illinois Environmental Protection Agency with an aggregate amount of work in excess of $250,000. Referred to Senate Rules.

SB 1511 (K. Raoul) Amends the Public Construction Bond Act. Authorizes the Capital Development Board to waive the requirement of a surety bond for a public construction contract if (i) the contractor is a small business enterprise and (ii) the otherwise required bond amount plus other surety bond amounts waived by the Board from small business enterprises, with respect to projects that are not yet complete, does not exceed $2,000,000.  Amended four times and is on 3rd Reading in the Senate. 

SB 1512 (K. Raoul) Amends the Capital Development Board Act. Requires that the Board make a good faith effort to increase to 20% its average percentage of project funding that is directed to minority-owned and female-owned businesses. Re-referred to Sentate Rules. 

SB 1661 (W. Brady) Creates the Contractor and Subcontractor Prompt Payment Act. Referred to Senate Rules.  The companion bill to this, HB 743, has already passed the House and has been sent to the Senate.