Legislative Update: Spring 2023

January 11 marked the beginning of Illinois’ 103rd General Assembly and the official start of the Spring 2023 legislative session. The Democrats managed to maintain their super-majority in both chambers, with 78 Democrats/40 Republicans in the House of Representatives, and 40 Democrats/19 Republicans in the Senate.

House Speaker Chris Welch will remain in his role, as will Senate President Don Harmon. The Republican caucus in both chambers elected new Minority Leaders. House Minority Leader Tony McCombie will lead the Republicans — making history as the first female to hold the position. The Senate Republicans will be led by Minority Leader John Curran.

As part of IMSCA’s annual Lobby Day in Springfield on April 26, IMSCA members (including those attending on behalf of SMACNA Greater Chicago) will go to the State Capitol Building and “drop in” on their elected officials to let them know of pending legislative issues being advanced by, or of concern to, IMSCA and the Illinois subcontracting industry. SMACNA Greater Chicago members are encouraged to contact the appropriate elected officials ahead of time to let them know about your business/company. It’s always easier to speak with General Assembly members about the potential impact of legislation (whether good or bad) when they already know about you and, particularly, if your business is located or employs individuals who live in that legislator’s district.

This year, IMSCA plans to introduce two legislative initiatives:

Our top legislative priority will be a continuation of our previous work on retainage reform. IMSCA will seek an amendment to the Public Construction Bond Act to provide for a 5% cap on the amount of retainage withheld on public construction projects.

IMSCA also plans to introduce legislation amending Section 24 of the Illinois Mechanics Lien Act. Currently, this Section provides that a notice of lien must be served by a subcontractor on the owner by certified mail return receipt requested, with delivery limited to addressee only, or by personal service. This presents practical problems for subcontractors and their attorneys or lien services. Problems that can arise include: the post office doesn’t always return the green card, service can be refused and the post office does not restrict delivery to addressee. Many laws that require serving a notice have been updated to also permit service by overnight delivery companies such as Federal Express, UPS or by any means that provides written, third-party verification of delivery. IMSCA’s goal in updating Section 24 is to ensure lien rights are not lost because someone refused to sign a green card, or the post office failed to return it to the sender.

During each legislative session, an average of 5,000 to 6,000 new pieces of legislation are introduced. As the Spring 2023 legislative session moves forward, you’re encouraged to pay close attention to calls to action and ways you can help communicate IMSCA’s message on important issues to members of the Illinois General Assembly.

We are confident that by working alongside our members, IMSCA and our valued members will have another legislatively successful year.

For more information or questions, contact Jessica Newbold Hoselton by calling 217-523-4361 or emailing JNewbold@BoldNewstrat.com.