Online Plan Room
Legislative Updates
Many of you likely received information from the Capital Development Board (CDB) alerting vendors of recent changes to the IL Works Apprenticeship Initiative.
The Illinois Works Jobs Program Act (P.A. 101-31) is administered by the Department of Commerce and Economic Opportunity (DCEO). The program is the result of legislation that was approved in conjunction with the Rebuild Illinois capital program in 2019. The program involves 3 initiatives that include:
- the Illinois Works Apprenticeship Initiative;
- the Construction Pre-Apprenticeship Program and;
- the Bid Credit Program (estimated implementation October 2023)
The Illinois Works Apprenticeship Initiative applies to public works projects with an estimated cost of $500,000 or more; which includes both capital grants and direct capital contracts. Prior to recently approved changes to the program, the goal was for apprentices to perform 10% of the total labor hours worked in each prevailing wage category or 10% of the estimated labor hours in each prevailing wage category, whichever is less.
However, HB 2300 (P.A. 103-0305) was approved by Governor Pritzker on July 28th and made some changes to the apprenticeship goals. The new goals are:
- For contracts executed between July 28, 2023, and January 1, 2024, at least 25% of the labor hours of each prevailing wage classification performed by apprentices shall be performed by apprentices who are graduates of the Illinois Works Pre-Apprenticeship Program, the Illinois Climate Works Pre-Apprenticeship Program, or the Highway Construction Careers Training Program.
- For contracts executed on or after January 1, 2024, at least 50% of the labor hours of each prevailing wage classification performed by apprentices shall be performed by graduates of one of those programs.
ICIC has met with DCEO staff regarding the apprenticeship goals, the pre-apprenticeship program, and the bid credit program. During our last meeting, we learned that DCEO recently updated their website to include comprehensive information about the program. The new information section on the website includes information about each of the three initiatives of the Illinois Works Jobs Program Act. Here is a link to the site: Illinois Works Jobs Program Act
As we understand the program, in order for signatory contractors (who are working on public works projects with an estimated cost of $500,000 or more) to meet the goals of the Illinois Works Apprenticeship Initiative, they will need to:
- Specifically request from the union hall “apprentices who are graduates of the Illinois Works Pre-Apprenticeship Program, the Illinois Climate Works Pre-Apprenticeship Program or the Highway Construction Careers Training Program” to work on public works projects.
- In addition,IF the union hall answers that there aren’t enough apprentices who are graduates of those programs, or if there aren’t any available apprentices who are graduates of those programs – the contractor will need to request that information in writing so that a waiver can be obtained from the contracting agency.
- HB 2300 (P.A. 103-0305) also requires DCEO to maintain a list of graduates of the Illinois Works Pre-Apprenticeship Program which is to be made available to vendors.
Jessica with ICIC is continuing to work closely with DCEO staff and working diligently to understand the full details of this program. As we learn more about the implementation of the recent changes to the Illinois Works Jobs Program, we will keep everyone informed. In addition, if there are other specific questions about the Illinois Works Jobs Program Act, please let me or Jessica (jnewbold@boldnewstrat.com) know and we will work on finding the answers for you.
By way of a quick legislative update, HB 2878 Senate Amendment 2 (procurement omnibus) was approved by the Illinois House last night (5/25/2023). This legislation includes various changes to the Illinois Procurement Code; including language amending the Public Construction Bond Act to provide that retainage may be withheld at a rate of 10% for the first half of a public construction project but reduced to 5% upon 50% completion. This provision will apply to every county, township, municipality, municipal corporation, school district, school board, forest preserve district, park district, fire protection district, sanitary district and all other local governmental units. The next step for HB 2878 is receiving approval by Governor Pritzker. The legislation will become effective on January 1, 2024.
The Illinois Senate approved the state’s FY 24 spending budget last night and adjourned for the summer months just after 1:00 a.m. The budget approved by the Senate spends an estimated $50.6 billion in FY 24; which begins July 1st. The budget awaits approval by the House. Due to procedural rules, the House can’t vote on the budget until after midnight on Saturday morning. As such, the House is scheduled to convene at 5:00 p.m. this evening (May 26). A comprehensive End of Session report, including an outline of the state budget, an overview of HB 2878 as amended and other approved legislative items, will be provided to ICIC members upon adjournment of the spring 2023 legislative session.
By way of a quick legislative update, HB 2878 Senate Amendment 2 was approved by the Illinois Senate on Friday evening. HB 2878 as amended now awaits a concurrence vote in the House.
Despite the May 19th adjournment date previously announced by Legislative Leaders, the Illinois House and Senate concluded their legislative deliberations last week without having agreed upon a budget and spending plan for FY 24; which begins July 1st. The House and Senate adjourned late Friday night and soon after, the Legislative Leaders confirmed that the Senate is scheduled to return to Springfield on Wednesday (May 24) and Thursday (May 25) and the House is scheduled to return Wednesday (May 24) through Friday (May 26).
Upon their return to Springfield this week, both chambers will work toward the passage of the FY 24 spending plan. It is anticipated that the House and Senate will attempt to conclude the 2023 spring legislative session prior to Memorial Day (May 29). A comprehensive End of Session report, including an outline of the state budget, will be provided to ICIC members upon session adjournment.
As anticipated, a procurement omnibus bill was introduced in the Senate, Friday, May 19th. The full text can be read here: HB 2878 Senate Amendment 2
The bill is nearly 200 pages long and makes numerous changes to the procurement code. Here is an overview of the provisions included in HB 2878 Amendment 2 that are of most importance to the Illinois construction industry. Please note that this is not a comprehensive overview of the proposed changes – due to time constraints, I am reporting those proposed changes that are of most importance to our members.
- Removes parameters of use for the Capital Development Board to use the single prime delivery method. Beginning Jan. 1, 2024, the CDB can determine if the single prime delivery method is to be pursued (page 6). These provisions were previously reviewed in HB 3551 (ICIC took a neutral position).
- Increases the small business threshold for veteran-owned small businesses from annual gross sales of less than $75 million to less than $150 million. This was previously reviewed as HB 2288/SB 1821 (ICIC took a support position).
- Includes provisions requiring corporations that contract with the state to include as part of its annual report submitted to the Secretary of State a list of its professional services suppliers (legal, accounting, consulting, etc.) by category; corporations who submit supplier diversity reports to the Illinois Commerce Commission are exempted from this requirement (page 79). This provision was included in SB 1491/HB 3894 (ICIC opposed).
- Outlines written documentation that is required by contractors when seeking a Good Faith Effort waiver to meet BEP program goals (page 80).
- The Public Private Partnership for Transportation Act is amended to remove the term “transportation agency” and replaces it with “responsible public entities”. Responsible public entity means “the means the Department of Transportation, the Illinois State Toll Highway Authority, and any county, municipality, or other unit of local government” (page 113).
- Amends the Public Construction Bond Act to increase the bond threshold from $50,000 to $150,000 for all public construction projects; allows local governments to require a bond for projects under $150,000 by approval of an ordinance or resolution; increases the bond threshold for all IDOT and Tollway projects to $500,000. These provisions sunset on January 1, 2029 (page 167).
- Further amends the Public Construction Bond Act to provide that retainage may be withheld at a rate of 10% for the first half of a public construction project but reduced to 5% upon 50% completion (page 173). This is negotiated language that was the result of SB 133 that ICIC supported.
Yesterday (May 17), Governor Pritzker and the Illinois Department of Commerce and Economic Opportunity (DCEO) announced that the application process for the Blue Collar Jobs Act (BCJA) Tax Credit for eligible companies is now open. The BCJA is a bipartisan legislative package designed to promote economic expansion and growth by incentivizing construction projects. The program makes $20 million in tax credits available per year for eligible companies. The program was approved in 2019 in conjunction with the Rebuild Illinois program. The effective date of the enabling legislation was 2021, however, implementation of the program was delayed and the application process was finally announced yesterday. As such, companies that completed construction projects in 2021 (the effective date of the enabling legislation) or later are eligible to apply for credits.
The BCJA program supports large-scale economic development activities by providing corporate income tax credits to companies that make substantial capital investments in Illinois. The tax credits are based on the wages paid to construction workers employed on eligible projects. To be eligible, a company must be located in an Enterprise Zone or a River Edge Redevelopment Zone, designated a High Impact Business, or have an agreement under the Economic Development for a Growing Economy Program. Eligible companies can receive up to 75 percent of the income tax withholding credits attributable to construction workers on eligible projects located in an underserved area, or 50 percent for projects located in other areas. Additional eligibility information can be found by visiting DCEO’s website by clicking here: Blue Collar Jobs Act Tax Credit Program. In addition, eligibility information can also be found on the Blue Collar Jobs Act Application (also available on DCEO’s website).
For those who are interested, DCEO will host a technical assistance webinar to share details regarding the BCJA program application and processes on Monday, June 26, 2023 from 1:00 p.m. – 2:00 p.m. Click here to sign up and RSVP for the webinar. If you need additional information or have questions regarding the program, you are encouraged to email: ceo.bcja@illinois.gov.
If you have additional questions, don’t hesitate to contact GPCSA.
The Illinois Construction Industry Committee’s 2023 Lobby Day event was held on Wednesday, April 26th at the Sangamo Club in Springfield.
Lobby Day attendees received an overview of current legislation being considered by the Illinois General Assembly that has an impact on the Illinois construction industry. Attendees also had the opportunity to visit their State Senators and Representatives at the Illinois State Capitol to discuss important legislative matters.
The event concluded with a “Construction Industry Legislative Reception” co-hosted by the Illinois Construction Industry Committee (ICIC) and the Illinois Mechanical & Specialty Contractors Association (IMSCA).
This report includes a summary of legislative items important to the Illinois construction industry that remain active. The Illinois General Assembly is currently on a two-week spring break. Both chambers will return to Springfield on Tuesday, April 18th.
ICIC’s March 27th Legislative Update is attached. This report includes a summary of legislative items important to the Illinois construction industry that remain active. The House and Senate return to Springfield this week for legislative session. The Third Reading Deadline in the Senate is Friday, March 31st.
ICIC’s March 17th Legislative Update is attached. This report includes a summary of legislative items that remain active and important to the construction industry. The House and Senate return to Springfield next week (March 21 – 24) for the legislative session.
ICIC Board of Directors:
By way of a quick update, the House and Senate will be in session Tuesday through Friday (March 7-10). While legislative activity seems to be picking up, so far, there has been limited floor and committee action on legislation. The deadline for substantive bills to pass out of committee is Friday, March 10th. This deadline applies to both chambers. As such, this coming week will be very busy and likely to result in long committee hearings.
For your reference, ICIC’s spring 2023 bill list is attached. ICIC’s Government Affairs Committee met twice to discuss many legislative items included on the attached list. While we didn’t discuss all 160+ bills on our list, many of the positions noted on the attached list are per the discussions and debate of the Government Affairs Committee. I would like to thank committee members for your time and sharing your expertise to help us determine ICIC’s position on the many bills that have been introduced this spring.
Please be advised that “active” bills on our list may fluctuate as a result of this week’s committee deadline. I plan to provide you with a Legislative Update at the end of this week that will outline the current status of legislation that is important to ICIC members. In the meantime, if you have any questions, please don’t hesitate to contact me.
I, along with your ICIC government affairs specialists – Jack and Ashlyn – look forward to representing ICIC and looking out for your best interests during the upcoming week of legislative activity.
Thank you,
Jessica Newbold Hoselton
Executive Director
Illinois Construction Industry Committee (ICIC)
Every year Illinois Construction Industry Committee (ICIC) reviews legislation to access its impact on the commercial construction industry and takes action to represent GPCSA and its members’ positions. The ICIC Government Affairs Committee met on Feb. 24th to review the second half of the Spring 2023 bills.
ICIC is opposing:
This report includes an overview of the current status of legislation that is important to the Illinois construction industry. Both chambers are scheduled to return to Springfield next week, February 21-23 (Senate) and February 21-24 (House).