HB3316 101ST GENERAL ASSEMBLY

LRB101 10806 JLS 55936 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3316

Introduced , by Rep. John Connor

SYNOPSIS AS INTRODUCED:

820 ILCS 130/2	from Ch. 48, par. 39s-2
820 ILCS 130/3	from Ch. 48, par. 39s-3

Amends the Prevailing Wage Act. Provides that the transportation of ready-mixed concrete and aggregate materials shall be deemed to be employment upon public works. Includes additional trucking related activities within the scope of the Act. Includes in the calculation of the prevailing wage rate, rental costs for trucks and equipment provided by owner-operators. Defines terms. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning employment.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Prevailing Wage Act is amended by changing Sections 2 and 3 as follows:

(820 ILCS 130/2) (from Ch. 48, par. 39s-2)

(Text of Section before amendment by P.A. 100-1177)

Sec. 2. This Act applies to the wages of laborers, mechanics and other workers employed in any public works, as hereinafter defined, by any public body and to anyone under contracts for public works. This includes any maintenance, repair, assembly, or disassembly work performed on equipment whether owned, leased, or rented.

As used in this Act, unless the context indicates otherwise:

"Public works" means all fixed works constructed or demolished by any public body, or paid for wholly or in part out of public funds. "Public works" as defined herein includes all projects financed in whole or in part with bonds, grants, loans, or other funds made available by or through the State or any of its political subdivisions, including but not limited to: bonds issued under the Industrial Project Revenue Bond Act (Article 11, Division 74 of the Illinois Municipal Code), the Industrial Building Revenue Bond Act, the Illinois Finance Authority Act, the Illinois Sports Facilities Authority Act, or the Build Illinois Bond Act; loans or other funds made available pursuant to the Build Illinois Act; loans or other funds made available pursuant to the Riverfront Development Fund under Section 10-15 of the River Edge Redevelopment Zone Act; or funds from the Fund for Illinois' Future under Section 6z-47 of the State Finance Act, funds for school construction under Section 5 of the General Obligation Bond Act, funds authorized under Section 3 of the School Construction Bond Act, funds for school infrastructure under Section 6z-45 of the State Finance Act, and funds for transportation purposes under Section 4 of the General Obligation Bond Act. "Public works" also includes (i) all projects financed in whole or in part with funds from the Department of Commerce and Economic Opportunity under the Illinois Renewable Fuels Development Program Act for which there is no project labor agreement; (ii) all work performed pursuant to a public private agreement under the Public Private Agreements for the Illiana Expressway Act or the Public-Private Agreements for the South Suburban Airport Act; and (iii) all projects undertaken under a public-private agreement under the Public-Private Partnerships for Transportation Act. "Public works" also includes all projects at leased facility property used for airport purposes under Section 35 of the Local Government Facility Lease Act. "Public works" also includes the construction of a new wind power facility by a business designated as a High Impact Business under Section 5.5(a)(3)(E) of the Illinois Enterprise Zone Act. "Public works" does not include work done directly by any public utility company, whether or not done under public supervision or direction, or paid for wholly or in part out of public funds. "Public works" also includes any corrective action performed pursuant to Title XVI of the Environmental Protection Act for which payment from the Underground Storage Tank Fund is requested. "Public works" does not include projects undertaken by the owner at an owner-occupied single-family residence or at an owner-occupied unit of a multi-family residence. "Public works" does not include work performed for soil and water conservation purposes on agricultural lands, whether or not done under public supervision or paid for wholly or in part out of public funds, done directly by an owner or person who has legal control of those lands.

"Construction" means all work on public works involving laborers, workers or mechanics. This includes any maintenance, repair, assembly, or disassembly work performed on equipment whether owned, leased, or rented.

"Trucking broker" means an individual or business entity, the activities of which include, but are not limited to:

(1) contracting to provide trucking services in the construction industry to users of those services;

(2) contracting to obtain such service from providers of trucking services;

(3) dispatching the providers of the services to do work as required by the users of such services;

(4) receiving payment from the users in consideration of the trucking services provided; and

(5) making payment to the providers for the services.

"Trucking firm" means any legal business entity that owns one or more vehicles and hires the vehicles out for services to trucking brokers or contractors on public works projects.

"Independent truck owner-operator" means an individual, partnership, or principal stockholder of a corporation that owns or holds a vehicle under lease and that contracts that vehicle and the owner's services to an entity which provides construction services to a public works project.

"Ready-mixed concrete" means concrete that is manufactured according to a set recipe for incorporation into a public works project.

"Aggregate" or "excavated materials" includes, but is not limited to, rock, gravel, sand, pebbles, dirt, soil, clay, bitumen, cultured and polymer materials, cement, concrete, asphalt, slag, grindings, and recycled materials.

"Stockpile" means aggregate or excavated materials that are placed in a location for temporary storage when all or substantially all of the aggregate or excavated material is relocated by loading and hauling it to another location for final placement.

"Transportation" means any required hauling activities on the site of, or to or from, a public works project or stockpile regardless of whether the activity is performed by the prime contractor, subcontractor, trucking broker, trucking firm, independent truck owner-operator, or employee or agent of any of the foregoing entities and regardless of which entity or person hires or contracts with another.

"Transportation of ready-mixed concrete" means receiving the concrete at the factory or batching plant, hauling and delivery to a public works project, and the return trip to the factory or batching plant, whether or not the factory or batching plant is mobile or in a fixed location.

"Transportation of aggregate or excavated materials" includes, but is not limited to, work, as required by the users of the services, for:

(1) the hauling of any or all stockpiled materials on the project work site to other locations on the same project even if the trucks leave the work site at some point;

(2) the delivery of materials from any facility or any stockpile to the project and the return haul to the starting location either empty or loaded;

(3) the delivery of materials from another construction project site to the public works project and the return haul empty or loaded;

(4) the hauling required to remove any materials from the public works project to a location off the project site and the return haul either empty or loaded; and

(5) the delivery of materials by an employee of a seller or supplier and the return haul to the off-site facility or any stockpile empty or loaded by an employee of the seller or supplier.

The hauling of aggregate or excavated materials by employees of a contractor or subcontractor that operates an asphalt or concrete plant, that was moved into a gravel pit, borrow pit, or other location not on the project, primarily to serve public works projects is considered work under the contract.

"Locality" means the county where the physical work upon public works is performed, except (1) that if there is not available in the county a sufficient number of competent skilled laborers, workers and mechanics to construct the public works efficiently and properly, "locality" includes any other county nearest the one in which the work or construction is to be performed and from which such persons may be obtained in sufficient numbers to perform the work and (2) that, with respect to contracts for highway work with the Department of Transportation of this State, "locality" may at the discretion of the Secretary of the Department of Transportation be construed to include two or more adjacent counties from which workers may be accessible for work on such construction.

"Public body" means the State or any officer, board or commission of the State or any political subdivision or department thereof, or any institution supported in whole or in part by public funds, and includes every county, city, town, village, township, school district, irrigation, utility, reclamation improvement or other district and every other political subdivision, district or municipality of the state whether such political subdivision, municipality or district operates under a special charter or not.

The terms "general prevailing rate of hourly wages", "general prevailing rate of wages" or "prevailing rate of wages" when used in this Act mean the hourly cash wages plus annualized fringe benefits for training and apprenticeship programs approved by the U.S. Department of Labor, Bureau of Apprenticeship and Training, health and welfare, insurance, vacations and pensions paid generally, in the locality in which the work is being performed, to employees engaged in work of a similar character on public works, and for those who own, such as an owner-operator, operate a truck, and are engaged in the transportation of ready mix-mixed concrete or transportation of aggregate or excavated materials the prevailing rate, shall include the equipment rate established by the Department of Labor associated with the nature of the equipment operated and the rental rate paid for truck hire to those who own or operate a truck.

(Source: P.A. 97-502, eff. 8-23-11; 98-109, eff. 7-25-13; 98-482, eff. 1-1-14; 98-740, eff. 7-16-14; 98-756, eff. 7-16-14.)

(Text of Section after amendment by P.A. 100-1177)

Sec. 2. This Act applies to the wages of laborers, mechanics and other workers employed in any public works, as hereinafter defined, by any public body and to anyone under contracts for public works. This includes any maintenance, repair, assembly, or disassembly work performed on equipment whether owned, leased, or rented.

As used in this Act, unless the context indicates otherwise:

"Public works" means all fixed works constructed or demolished by any public body, or paid for wholly or in part out of public funds. "Public works" as defined herein includes all projects financed in whole or in part with bonds, grants, loans, or other funds made available by or through the State or any of its political subdivisions, including but not limited to: bonds issued under the Industrial Project Revenue Bond Act (Article 11, Division 74 of the Illinois Municipal Code), the Industrial Building Revenue Bond Act, the Illinois Finance Authority Act, the Illinois Sports Facilities Authority Act, or the Build Illinois Bond Act; loans or other funds made available pursuant to the Build Illinois Act; loans or other funds made available pursuant to the Riverfront Development Fund under Section 10-15 of the River Edge Redevelopment Zone Act; or funds from the Fund for Illinois' Future under Section 6z-47 of the State Finance Act, funds for school construction under Section 5 of the General Obligation Bond Act, funds authorized under Section 3 of the School Construction Bond Act, funds for school infrastructure under Section 6z-45 of the State Finance Act, and funds for transportation purposes under Section 4 of the General Obligation Bond Act. "Public works" also includes (i) all projects financed in whole or in part with funds from the Department of Commerce and Economic Opportunity under the Illinois Renewable Fuels Development Program Act for which there is no project labor agreement; (ii) all work performed pursuant to a public private agreement under the Public Private Agreements for the Illiana Expressway Act or the Public-Private Agreements for the South Suburban Airport Act; and (iii) all projects undertaken under a public-private agreement under the Public-Private Partnerships for Transportation Act. "Public works" also includes all projects at leased facility property used for airport purposes under Section 35 of the Local Government Facility Lease Act. "Public works" also includes the construction of a new wind power facility by a business designated as a High Impact Business under Section 5.5(a)(3)(E) of the Illinois Enterprise Zone Act. "Public works" does not include work done directly by any public utility company, whether or not done under public supervision or direction, or paid for wholly or in part out of public funds. "Public works" also includes any corrective action performed pursuant to Title XVI of the Environmental Protection Act for which payment from the Underground Storage Tank Fund is requested. "Public works" does not include projects undertaken by the owner at an owner-occupied single-family residence or at an owner-occupied unit of a multi-family residence. "Public works" does not include work performed for soil and water conservation purposes on agricultural lands, whether or not done under public supervision or paid for wholly or in part out of public funds, done directly by an owner or person who has legal control of those lands.

"Construction" means all work on public works involving laborers, workers or mechanics. This includes any maintenance, repair, assembly, or disassembly work performed on equipment whether owned, leased, or rented.

"Trucking broker" means an individual or business entity, the activities of which include, but are not limited to:

(1) contracting to provide trucking services in the construction industry to users of those services;

(2) contracting to obtain such service from providers of trucking services;

(3) dispatching the providers of the services to do work as required by the users of such services;

(4) receiving payment from the users in consideration of the trucking services provided; and

(5) making payment to the providers for the services.

"Trucking firm" means any legal business entity that owns one or more vehicles and hires the vehicles out for services to trucking brokers or contractors on public works projects.

"Independent truck owner-operator" means an individual, partnership, or principal stockholder of a corporation that owns or holds a vehicle under lease and that contracts that vehicle and the owner's services to an entity which provides construction services to a public works project.

"Ready-mixed concrete" means concrete that is manufactured according to a set recipe for incorporation into a public works project.

"Aggregate" or "excavated materials" includes, but is not limited to, rock, gravel, sand, pebbles, dirt, soil, clay, bitumen, cultured and polymer materials, cement, concrete, asphalt, slag, grindings, and recycled materials.

"Stockpile" means aggregate or excavated materials that are placed in a location for temporary storage when all or substantially all of the aggregate or excavated material is relocated by loading and hauling it to another location for final placement.

"Transportation" means any required hauling activities on the site of, or to or from, a public works project or stockpile regardless of whether the activity is performed by the prime contractor, subcontractor, trucking broker, trucking firm, independent truck owner-operator, or employee or agent of any of the foregoing entities and regardless of which entity or person hires or contracts with another.

"Transportation of ready-mixed concrete" means receiving the concrete at the factory or batching plant, hauling and delivery to a public works project, and the return trip to the factory or batching plant, whether or not the factory or batching plant is mobile or in a fixed location.

"Transportation of aggregate or excavated materials" includes, but is not limited to, work, as required by the users of the services, for:

(1) the hauling of any or all stockpiled materials on the project work site to other locations on the same project even if the trucks leave the work site at some point;

(2) the delivery of materials from any facility or any stockpile to the project and the return haul to the starting location either empty or loaded;

(3) the delivery of materials from another construction project site to the public works project and the return haul empty or loaded;

(4) the hauling required to remove any materials from the public works project to a location off the project site and the return haul either empty or loaded; and

(5) the delivery of materials by an employee of a seller or supplier and the return haul to the off-site facility or any stockpile empty or loaded by an employee of the seller or supplier.

The hauling of aggregate or excavated materials by employees of a contractor or subcontractor that operates an asphalt or concrete plant, that was moved into a gravel pit, borrow pit, or other location not on the project, primarily to serve public works projects is considered work under the contract.

"Locality" means the county where the physical work upon public works is performed, except (1) that if there is not available in the county a sufficient number of competent skilled laborers, workers and mechanics to construct the public works efficiently and properly, "locality" includes any other county nearest the one in which the work or construction is to be performed and from which such persons may be obtained in sufficient numbers to perform the work and (2) that, with respect to contracts for highway work with the Department of Transportation of this State, "locality" may at the discretion of the Secretary of the Department of Transportation be construed to include two or more adjacent counties from which workers may be accessible for work on such construction.

"Public body" means the State or any officer, board or commission of the State or any political subdivision or department thereof, or any institution supported in whole or in part by public funds, and includes every county, city, town, village, township, school district, irrigation, utility, reclamation improvement or other district and every other political subdivision, district or municipality of the state whether such political subdivision, municipality or district operates under a special charter or not.

"Labor organization" means an organization that is the exclusive representative of an employer's employees recognized or certified pursuant to the National Labor Relations Act.

The terms "general prevailing rate of hourly wages", "general prevailing rate of wages" or "prevailing rate of wages" when used in this Act mean the hourly cash wages plus annualized fringe benefits for training and apprenticeship programs approved by the U.S. Department of Labor, Bureau of Apprenticeship and Training, health and welfare, insurance, vacations and pensions paid generally, in the locality in which the work is being performed, to employees engaged in work of a similar character on public works, and for those who own, such as an independent owner-operator, and operate a truck and are engaged in the transportation of ready mix-mixed concrete or transportation of aggregate or excavated materials, the prevailing rate, shall, in addition, include the equipment rate established by the Illinois Department of Transportation associated with the nature of the equipment operated and the rental rate paid for truck hire by those who own or operate a truck, whichever is applicable.

(Source: P.A. 100-1177, eff. 6-1-19.)

(820 ILCS 130/3) (from Ch. 48, par. 39s-3)

Sec. 3. Not less than the general prevailing rate of hourly wages for work of a similar character on public works in the locality in which the work is performed, and not less than the general prevailing rate of hourly wages for legal holiday and overtime work, shall be paid to all laborers, workers and mechanics employed by or on behalf of any public body engaged in the construction or demolition of public works. This includes any maintenance, repair, assembly, or disassembly work performed on equipment whether owned, leased, or rented. All Only such laborers, workers, and mechanics as are directly employed by contractors or subcontractors in actual construction work on the site of the building or construction job shall be deemed to be employed upon public works. The transportation of ready-mixed concrete and transportation of aggregate or excavated materials to the job site or stockpile shall be deemed to be employed in construction upon public works. Laborers , and laborers, workers, and mechanics otherwise engaged in the transportation of materials and equipment to or from the site, but not including the transportation by the sellers and suppliers or the manufacture or processing of materials or equipment, in the execution of any contract or contracts for public works with any public body shall not be deemed to be employed upon public works. The wage for a tradesman performing maintenance is equivalent to that of a tradesman engaged in construction or demolition.

(Source: P.A. 95-341, eff. 8-21-07; 96-186, eff. 1-1-10.)

Section 95. No acceleration or delay. Where this Act makes changes in a statute that is represented in this Act by text that is not yet or no longer in effect (for example, a Section represented by multiple versions), the use of that text does not accelerate or delay the taking effect of (i) the changes made by this Act or (ii) provisions derived from any other Public Act.

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