Legislative Update - Fall 2024
WHAT YOU SHOULD KNOW ABOUT NEW STATE LEGISLATION
The Illinois Mechanical and Specialty Contractors Association (IMSCA) tracked 183 bills relevant to the construction industry during the 2023-2024 Illinois State Legislative Session. This is a rundown of what we helped pass, what we worked to amend, and what we successfully stopped in its tracks.
NEW LEGISLATION
Illinois Mechanics Lien Act Amendment Bill
A mechanics lien is a legal tool designed to help contractors in Illinois secure payment for work completed from parties withholding or refusing payment. The Illinois Mechanics Lien Act amendment bill, HB 4660, will allow delivery of lien notices by a “nationally recognized delivery company with a tracking service,” like FedEx or UPS. The bill was signed into law in August and when it goes into effect on Jan. 1, 2025, it will make it easier for construction contractors to receive payments in less-than-ideal situations. Until then serving liens will be limited to personal hand-offs or delivery by registered or certified mail requiring signature upon receipt.
Public Act 103-0865
IMSCA successfully amended HB 5511 to remove bid preferences for using Illinois materials suppliers in construction projects. This bill later became a large procurement bill which was signed into law as Illinois Public Act 103-0865. The 191-page Act makes multiple changes relevant to SMACNA member interests, including these amendments to the Illinois Procurement Code.
• State agencies barred from prohibiting use of electronic procurement systems.
• Chief procurement officers allowed to apply a 4% bid preference for Illinois contractors at any time during a contract.
• Public-Private Partnerships for Transportation Act amended to include the four most populous counties — Cook, DuPage, Lake and Will — as responsible public entities.
• IDOT and the Tollway required to share plans with local units of government.
• IDOT and Tollway allowed to accept unsolicited proposals.
The Progressive Design-Build Pilot Program Act
This section of the Act authorizes the Capitol Development Board to use Progressive Design-Build (PDB) project delivery on three projects. With PDB, the state issues a Request for Qualifications (RFQ) instead of an RFP, and that happens before the baseline design is completed. The state will then select the designer and construction contractors based on relevant qualifications and past performance. The selected contractors will then work hand-in-hand with the state to develop project design and budget.
The Progressive Design Build portion of Public Act 103-0865 took effect immediately, the remainder of the Act takes effect on Jan. 1, 2025.
House Bill 5369
Allows community colleges to accept up to 30 credit hours if a student has completed a masonry program at that institution.
Senate Bill 2702
Requires fire sprinkler inspectors to be employed by a firm and prevents them from doing the work freelance or working for multiple contractors.
SUCCESSFULLY HALTED BILLS
House Bill 5117
IMSCA successfully stopped the Deforestation-Free Procurement Act, which would have prohibited the use of tropical hardwoods in state projects and imposed penalties for violations.
House Bill 4523
IMSCA opposition helped kill HB 4523, which would’ve made projects funded by special service area money exempt from prevailing wage.
UNSUCCESSFULLY BILLS
IMSCA pushed for several bills that didn’t make it this session:
Senate Bill 3608
Would’ve made state projects exempt from following local municipal codes and ordinances.
Senate Bill 3152
Would’ve allowed small businesses to deduct up to $50,000 per year on asset purchases.
House Bill 3152
Would’ve required work on commercial solar and wind facilities to be performed under a project labor agreement.
House Bill 4578
Would’ve created an income tax credit for residential fire sprinkler systems.
House Bill 5379
Would’ve required projects funded by the Illinois Climate Bank to be subject to a PLA.
Senate Bill 2949
Would’ve reduced the prejudgment interest rate for personal injury or wrongful death cases from six percent to five percent.
The Illinois General Assembly adjourned the 2024 Regular Session just before 5 a.m. on May 29, five days after the scheduled adjournment date. It seems impossible to separate politics from drama at any level of government, unfortunately. Looking ahead, the legislature will return to Springfield the weeks of November 11 and 18 for the Fall Veto Session. IMSCA will return to Springfield for the 2024-2025 General Assembly and will continue to lobby for the interests of SMACNA Greater Chicago members and the Illinois construction industry.