LIST OF 2003 ILLINOIS CONSTRUCTION-RELATED LEGISLATION SIGNED INTO LAW, OR VETOED BY GOVERNOR AS OF 9/2/03
By Attorney Elias M. Gordan, Palos Park
NOTE: IL Senate and House to reconvene 11/4/03.
LEGISLATION SIGNED INTO LAW
Public Acts 93-10, 93-12. "Deep-pocket" laws. Apply to personal injury, property damage lawsuits based on negligence; also product liability suits. They are meant to prevent defendants from reducing their liability exposure for non-medical damages, based on a third-party employer's fault. Effective June 4, 2003.
Public Act 93-10 (HB 2784) provides only “several liability” for non-medical expenses, to any defendant found less than 25% at fault, compared to total fault percentages of plaintiff, defendants (actually) sued by plaintiff, and third party defendants other than plaintiff's employer.
Public Act 93-12 (SB 729) provides for “joint and several liability” of any defendant found to be 25% or more at fault, taking into account fault percentages of plaintiff, defendants (actually) sued by plaintiff, and third party defendants other than plaintiff's employer.
These laws were meant to overturn a recent case ( Unzicker v. Kraft Food Ingredients Corp, case at http://www.state.il.us/court/Opinions/SupremeCourt/2002/November/Opinions/Html/92838.htm), involving a pipefitter working for an outside contractor at a Kraft Foods plant. The pipefitter was severely injured when his manlift was hit a by Kraft forklift, driven by the pipefitter's foreman. The pipefitter collected workers' compensation from his (and his foreman's) employer. The pipefitter sued Kraft, and Kraft sued the pipefitter's employer. A jury awarded medical damages of $91,400, and non-medical damages of $788,000. Kraft was found 1% at fault, and the pipefitter's employer was found 99% at fault.
The Illinois Supreme Court upheld the lower court ruling, finding Kraft potentially liable for the full $91,400 medical damages under “joint and several liability”, and individually (“severally”) liable for 1% of the $788,000 non-medical damages, or $7880. If “joint and several liability” applied, Kraft could have been liable for the full $788,000. The pipefitter's employer was liable to Kraft for 99% of the $91,000 medical damages.
Public Act 93-15. (HB 46) Provides grant money for renewable fuel projects, requires prevailing wage for these projects. Requires prevailing wages to be posted on the jobsite. Effective June 11, 2003.
Public Act 93-16. (SB 1212) Expands reach of Illinois Prevailing Wage Act to additional school, transportation projects. Requires prevailing wages to be posted on the jobsite. Effective January 1, 2004.
Public Act 93-19. (SB 719) Among other things, gives the State authority to sell, mortgage, or sell/leaseback the Tollway Headquarters and the Thompson Center. Effective June 20, 2003.
Public Act 93-23. (SB 841) Creates transportation employee tax credit. Tightens exemption from use tax, to exclude most rolling stock not carried 51% or more in interstate commerce, based on number of trips in a 12-month period. Imposes 36% surcharge (“commercial distribution fee”) on trucks over 8000 lbs. GVW, and some trucks under 8000 lbs. GVW. Provides use tax exemption where surcharge is imposed. Effective June 20, 2003.
Public Act 93-24. (SB 842) Removes tax exemption for aggregate processing equipment, and replacement parts for same. Imposes use tax on aircraft. Effective June 20, 2003. More info:
Public Act 93-25. (SB 874) Allows the Department of Central Management Services (CMS) to take over information technology (computer) functions from any State agency (such as IDOT or the Capital Development Board). Charges CMS with recommending efficiency initiatives to the Governor. Bars State bidding or contracting by any party whose affiliate owes money to State. Requires State contractors and their affiliates to collect and forward Illinois use taxes to State. Allows counties and municipalities to impose similar use tax requirements on their contractors. Increases allowable Road Fund diversions to Secretary of State (up to total of $130.5 million), extends Road Fund diversions to State Police (up to total of $97.3 million), and allows diversion of Road Fund monies to General Revenue Fund. Diverted money is to be repaid to Road Fund as soon as the State is “in the black”. Effective June 20, 2003.
Public Act 93-31 (SB 1733) Imposes tax on natural gas purchased outside of Illinois, beginning October 1, 2003.
Public Act 93-32 (SB1903) Shifts monies for FY 2004 State budget. Diverts $50 million from Road Fund to General Fund, to cover State deficit. Allows further diversions (up to 5% of the deposited revenues), if needed, to help pay the State's bills. Diverts license plate revenues from Road Fund. Imposes 1.5% premium surcharge on workers comp carriers, and fee (0.045% of wages) on self-insured employers. Raises over 300 State fees. Effective June 20, 2003.
Public Act 93-38 (HB 3398) amends Prevailing Wage Act to require that public contractors incorporate prevailing wage requirements into all of their subcontracts and subcontract specifications. First-tier subcontractors must do the same for all of their subcontracts/ specifications with second-tier subcontractors, etc. Imposes three-year recordkeeping requirements on contractors and each of the subcontractors or the public body. An earlier provision, beaten back, would have allowed the IL Department of Labor to request the letting agency to withhold funds from violators.
Effective January 1, 2004.
Public Act 93-59 (SB 1506) Makes changes to laws governing corporations, LLCs, and State trademarks. Effective July 1, 2003.
Public Act 93-77 (HB 39) Allows for suspension from State bidding for a period of up to 10 years (increased from previous maximum of five years). Effective July 2, 2003.
Public Act 93-117 (HB 32) - prohibits state agency web sites from using "cookies" to track user habits, unless they add value to the user (and are disclosed), or facilitate business transactions. Effective January 1, 2004.
Public Act 93-177 (HB 2301) - increases penalties for obstructing highways. Effective July 11, 2003.
Public Act 93-179 (SB 268) - Clarifies that to extent allowed by Federal law, clean construction or demolition debris is not to be considered "waste" (thereby subject to additional IL-EPA regulation):
if used as fill material outside of a "setback zone", and if the fill is placed no higher than the high point of the old grade, adjacent to the fill area, OR
is processed (i.e., crushed) and returned to the "economic mainstream" as raw material or product, provided it is not "speculatively accumulated” (This is unchanged from existing law). If used as fill, the debris must be used within 30 days of generation, OR
is broken concrete without projecting rebar, used only for erosion control (unchanged from existing law), OR
is generated from construction or demolition of a building, wrote, or other structure and is used on the same site, to build a man-made "functional structure" of 20 feet or less above the adjacent grade. Must be covered with road; structure; or soil sufficient to support vegetation. Must also obtain consent of municipality, if a home rule municipality with population over 500,000 (this means Chicago and larger counties).
This bill also exempts municipalities and county highway departments from recordkeeping requirements pertaining to generation, hauling, and disposition of debris or soil. This bill specifically does not exempt municipalities and county highway departments from the recordkeeping requirements, if they are located in Cook County or the adjacent "collar counties". This bill also specifically does not exempt contractors on
county highway or municipal projects from recordkeeping requirements. This bill expands the recordkeeping requirements of existing law beyond IDOT contractors.
Public Act 93-221 (SB 1336) - provides that contractors on State construction projects may not be required to post cash bond or letter of credit, in addition to or in lieu of surety bond. Effective January 1, 2004.
Public Act 93-325 (SB 1034) - Amends Freedom of Information Act (FOIA) to exclude plans for water treatment plants, airports, government buildings, stadiums, and convention centers from FOIA disclosure, to the extent that such a disclosure would compromise security at such facilities.
Effective July 23, 2003.
Public Act 93-357 (SB 1054) - addresses rights of landowners abutting or owning property, on which sewer and water projects are being built. Effective January 1, 2004.
Public Act 93-370 (HB 3082) - extends Prevailing Wage Act to buildings and ground services contracted for by State. In setting prevailing wage, State now may take into account wages paid under its own union agreements. Effective January 1, 2004.
Public Act 93-405 (SB 726) - creates Regional Transportation Task Force within IDOT, to make recommendations to the Governor and General Assembly by March 1, 2004, regarding transportation programs within IDOT District One. The report must address, among other things, the feasibility of merging the Illinois Tollway (ISTHA), the Chicago Area Transportation Study (CATS), the Northeastern Illinois Planning Commission (NIPC), and the Regional Transportation Authority (RTA). Effective August 1, 2003.
Public Act 93-422 (HB 954) - amends the Freedom of Information Act (FOIA) to exclude discussions of security threats affecting the public, from the Open Meetings Act. Also excludes utility maps, security-related plans (attack response plans, etc.) from FOIA disclosure. Effective August 5, 2003.
Public Act 93-430 (HB 2839) - Requires contractors to call JULIE not more than 14 calendar days before digging. After 2/29/04, requires additional notice to JULIE (outside Chicago) or DIGGER (inside Chicago) if excavation/demolition project extends beyond 28 days, after the first notice to JULIE or DIGGER. Added notice will be good for 28 days, in which time the excavation or demolition has to be completed, Else, another 28-day notice is required.
This bill imposes a duty on contractors hitting a utility line, to work with the utility in a "cooperative and expeditious manner" to repair the damage. This bill also requires contractors demolishing or digging within the City of Chicago, to call both DIGGER and the affected utility, if a line is hit.
In addition, this bill exempts sewer utilities outside Chicago from having to locate their lines unless:
the contractor tells JULIE that it will be digging more than 7 feet deep, OR
the contractor tells JULIE it will be directional-boring, OR
force mains are involved, OR
sewer lines with less than 7 feet of cover are involved
If the Contractor hits a sewer line outside of Chicago that did not have to be located, it cannot be held liable to the sewer owner for any damage, IF prompt notice of the hit is given to JULIE and the sewer owner.
Finally, this bill requires Contractors to mark excavation locations in black, if snow is on the ground. If no snow, the law currently requires white markings. Effective August 5, 2003.
Public Act 93-450 (HB 721) - enhances City of Chicago powers (including “quick-take” rights) for future O'Hare expansion and modernization. Effective August 6, 2003.
Public Act 93-467 (SB 698) - redefines "land surveying", prohibits Professional Land Surveyors from using computer-generated or rubber stamp signatures with their seal. Effective January 1, 2004.
Public Act 93-544 (SB 1872) - creates Whistleblower Protection Act. Prohibits nongovernmental employers from barring employee reports, of believed violation of State or Federal law or regulation. Prohibits retaliation against employees for reporting believed violation of State or Federal law or regulation. Also prohibits retaliation against employees for refusing to participate in activity, that would result in violation of State or Federal law or regulation. Allows for civil lawsuits against employers violating this Act. Effective January 1, 2004.
Public Act 93-545 (HB 3061) - requires IDOT to use "context-sensitive criteria" and “context-sensitive solutions” in the design and construction of its non-Maintenance projects, and report to the Legislature and Governor on its efforts by April 1, 2004. “Context-sensitive” criteria and solutions are supposed to fit the project to its surroundings and locale. Effective January 1, 2004.
Public Act 93-562 (HB 2493) - changes Public Construction Bond Act to provide that a lien waiver shall not constitute a waiver of the bond claim, unless specifically stated on the waiver. Effective August 20, 2003.
Public Act 93-575 (SB 1379) - bars award of State contracts to anybody found to willfully or knowingly violate Illinois environmental protection laws, subject to certain exceptions. Effective January 1, 2004.
Public Act 93-586 (SB 1901) - clarifies transfer of legal personnel from State agencies to Department of Central Management Services. Effective August 22, 2003.
Public Act 93-600 (SB 1530) - bars businesses from receiving State contracts for 5 years, if business, or any officer, director, partner, or managerial agent is convicted of felony under the Federal Sarbanes-Oxley Act or Illinois Securities Law. If party is a business, and not a natural person (i.e., corporation), prohibition applies only if business was convicted of felony, or was ordered to pay punitive damages based on the conduct of any officer, director, partner, or managerial agent convicted of felony under the Federal Sarbanes-Oxley Act or Illinois Securities Law. All State bidders must certify that they are not barred from State contracting under this new law. If agency determines that Contractor is violating this Act, the State agency shall declare the contract void. Effective January 1, 2004.
LEGISLATION VETOED BY GOVERNOR
HB 3048 - Requires bidders on State construction contracts to show the letting agency evidence of compliance with certain State and Federal requirements, in order to be considered a “responsible bidder” on the project. Requirements include:
authority to conduct business in Illinois
compliance with Prevailing Wage Act
compliance with EEO requirements
valid Social Security number or FEIN number
valid certificate of insurance for general liability, professional liability, product liability, workers compensation, completed operations, hazardous occupation, and automobile, and
bidder and all its subcontractors must participate in applicable training and apprenticeship programs.
Gov. Blagojevich indicated concerns that certain of these requirements would jeopardize Federal aid to construction projects.
SB 1848 - imposes ethics requirements, creates Inspector General position, and defines toll enforcement procedure for Illinois Tollway. Also requires 20-year financial plan for Tollway, and provides for public hearings as part of planning process. Requires use of concrete masonry-block noise walls on future projects. Permits Tollway to enforce tolls using photo surveillance. Increases Legislative oversight of Tollway expenditures. Allows Tollway to electronically collect tolls, fees, and revenues on behalf of public or private entities.
Gov. Blagojevich objected to the requirement of concrete masonry-block noise walls.
DISCLAIMER: For general information only. Not to be considered legal advice. Your mileage (or situation) may vary, depending on the actual facts of your case. If you have any questions, please contact us at
DISCLAIMER: For general information only. Not to be considered legal advice. Your mileage (or situation) may vary, depending on the actual facts of your case.
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