Legislative Update Spring 2021

Jessica Newbold Hoselton | jnewbold@boldnewstrat.com

As previously reported, IMSCA’s top legislative priority for the spring 2021 legislative session is SB 178. This bill would amend the Public Construction Bond Act to provide that no retainage may be withheld by a unit of local government from a contractor who furnishes a surety bond as required by the Act, nor may a contractor withhold retainage from its subcontractors. SB 178 was met with opposition from the Illinois Municipal League, the Illinois State Association of Counties, the Illinois Association of School Boards and the American Casualty Property Insurance Association.

Our bill sponsor encouraged IMSCA to work toward a compromise with the opposition, and we plan to resume conversations at a time when we’re able to safely meet in person to discuss and exchange ideas.

Some other pieces of legislation IMSCA is watching are:

SB 2494

This bill seeks to extend a sunset provision in current law that allows the time a commercial construction project may last and still permit the filing of a mechanics lien from 3 to 5 years. This law is set to expire on December 31, 2021, but if passed, the sunset provision would be extended through 2026.

HB 2952 REP. GONG-GERSHOWITZ

SB 2351 SEN. HASTINGS

These identical “tech” bills could be used to amend the Wage Payment and Collection Act. IMSCA is skeptical these tech bills may be placeholders that will be amended at a later date to include similar language we opposed in 2019. IMSCA members may recall HB 2838 that sought to amend the Wage Payment and Collection Act by seeking to hold general contractors liable for the payment of wages to employees of a subcontractor even when the general contractor has paid the subcontractor in full. IMSCA is keeping a watchful eye on HB 2952 and SB 2351 in case the previous language from HB 2838 is resurrected.

HB 3149

This bill amends provisions in the school code that allow the use of “energy performance contracting,” a process that bundles together the design, construction, financing and continued maintenance of energy efficiency projects for public buildings. A vendor’s proposed energy cost savings are used to pay for the upgrades. Over time, the use of this alternative funding mechanism has resulted in a departure from the original intent of the statute and many abuses have been documented, such as using this delivery method for non-energy related projects which include flooring, security systems, playgrounds and parking lots. These projects often circumvent nearly every existing state law governing construction in Illinois including the Procurement Code, the Prevailing Wage Act and the Minority and Female Business Enterprises Act. In addition, these projects are often used as a means to bypass the competitive bid process. HB 3149 aims to clean up the inconsistencies of existing statute and return it to its intended use.

HB 3431

This bill amends the Compassionate Use of Medical Cannabis Program Act. This bill clarifies employers can enforce drug-free workplace policies and provides anti-discrimination protection to medical cannabis patients for failing a drug test. Under provisions included in HB 3431, employers cannot take adverse actions against medical marijuana patients who work in non-safety sensitive positions solely due to a positive drug test. However, Rep. Morgan agreed to amend the bill to add the terms “commercial and road construction” to the definition of safety sensitive position, which will provide further protection to IMSCA members.