NFIB/Illinois Capitol Roundup
February 15, 2007
Welcome to the NFIB/Illinois’ Capitol Roundup. Capitol Roundup is an e-mail newsletter on news being made at the Illinois Statehouse and on Capitol Hill in Washington, D.C, as it happens. This e-mail is provided to our activist members who have shown an interest in promoting the voice of small business to state and federal policymakers. Capitol Roundup will appear regularly during legislative sessions.
Due to blizzard conditions throughout Illinois, the Illinois House of Representatives cancelled session for the week. Both chambers are expected back in session on February 21, 2007. However, hundreds of bills have been introduced. Below are some of the legislation NFIB/Illinois is tracking in the areas of health care, prevailing wage, minimum wage, service tax and unfair competition. For more information on any of the bills listed below, go to http://www.ilga.gov/ which is the official website of the Illinois General Assembly.
Health Care
HB 677 Rep. Frank J. Mautino (D-Spring Valley)
SB 092 Sen. William Haine (D-Alton)
Creates the Health Insurance Choice Act. Requires small employers, with 50 or more employees, to offer health insurance to their employees. Does not require employers to pay for any portion of the insurance.
Status House: Executive Committee
Status Senate: Rules Committee
NFIB Position: Oppose
SB 559 Sen. William Haine (D-Alton)
Creates the Consumer Choice of Benefits Plan Act. Allows employers to offer a variety of health care products to employees, including a plan with fewer mandates, in order to reduce the cost of health insurance. Also creates an employer health insurance contribution tax credit.
Status: Rules Committee
NFIB Position: Support
Prevailing Wage
HB 453 Rep. Lou Lang (D-Skokie)
Amends the Prevailing Wage Act. Deletes the provision requiring contractors and subcontractors participating on public works to make and keep records of the starting and ending times of work each day of all laborers, mechanics, and other workers employed by them on the public works projects. Provides that if a contractor or subcontractor fails to submit the certified payroll, the public body awarding the contract for public work or otherwise undertaking any public works shall demand the submission of the required documents within 5 days after the submission is due. Provides that if the contractor or subcontractor fails to submit the requested documents, the public body shall withhold all payments due the contractor, or all amounts due the subcontractor in connection with the work performed until the requested documents are received.
Status: Labor Committee
HB 773 Rep. John Fritchey (D-Chicago)
Amends the Prevailing Wage Act. Provides that the Act applies to maintenance, repair, assembly, or disassembly work performed on equipment whether owned, leased, or rented. Provides that all contractors and subcontractors required to pay the prevailing wage shall make payment of the wage in legal tender without a deduction for food, sleeping accommodations, transportation, use of tools, or any other thing of any kind or description.
Status: Rules Committee
HB 985 Rep. Daniel Beiser (D-Alton)
SB 667 Sen. William Haine (D-Alton)
Amends the Prevailing Wage Act. Provides that the public body or the Department of Labor shall make the revised prevailing rate of hourly wages available to the contractor and each subcontractor (rather than the public body being responsible to notify the contractor and each subcontractor of the revised rate). Effective immediately.
Status House: Rules Committee
Status Senate: Rules Committee
HB 1065 Rep. Maria Antonia Berrios (D-Chicago)
Amends the Prevailing Wage Act. Provides that if the violation of the Act involves a worker who is not a legal resident alien or a United States citizen, then a single violation within 5 years shall place the contractor on the Department of Labor's list of contractors or subcontractors found to have disregarded their obligations to employees under the Act. Effective immediately.
Status: Rules Committee
NFIB Position: Oppose
HB 1105 Rep. Careen Gordon (D-Coal City)
Amends the Prevailing Wage Act. Provides that workers at a facility dedicated exclusively, or nearly so, to performance of the contract or project and located in such proximity to the actual construction location that it would be reasonable to include them, or that perform work specifically designated for installation on a public works project, shall be deemed to be employed on public works. Provides for coverage of "the transportation of aggregate and excavated materials and equipment operated to haul to or from the site". Provides that workers who are paid a set amount for truck expense and take-home wage and are deemed to be employed on the public works project are entitled to the proper prevailing wage for the equipment being operated, and provides for the determination of the take-home wage. Provides that the transportation by sellers and suppliers or the manufacture of non-aggregate materials or equipment in the execution of a contract for public works with a public body are not deemed to be employment on public works. Makes other changes.
Status: Rules Committee
NFIB Position: Oppose
SB 668 Sen. William Haine (D-Alton)
Amends the Prevailing Wage Act. Provides that the Act applies to any maintenance, repair, assembly, or disassembly work performed on equipment whether owned, leased, or rented. Effective immediately.
Status: Rules Committee
NFIB Position: Oppose
SB 1394 Sen. John O Jones (R-Chicago)
Amends the Prevailing Wage Act. Provides that "public works" includes any construction, demolition, remediation, or renovation that requires a permit issued by the Illinois Environmental Protection Agency with an aggregate amount of work in excess of $250,000. Effective immediately.
Status: Rules Committee
NFIB Position: Oppose
SB 1529 Sen. Gary Forby (D-Benton)
Amends the Prevailing Wage Act. Provides that a failure to provide prevailing wage information in certain project specifications, contracts, subcontracts, or notices does not excuse a contractor or subcontractor from paying the prevailing wage. Deletes language providing that 2 or more investigatory hearings on the issue of establishing a new prevailing wage classification for a particular craft or type of worker shall be consolidated in a single hearing before the Department of Labor. Provides that contractors and subcontractors shall make and keep, for not less than 5 (rather than 3) years, records of all laborers, mechanics, and other workers employed by them on a project. Provides that a public body or the Department of Labor, whichever has made a prevailing wage determination, is authorized to hear each timely filed written objection, that 2 or more hearings on the issue of establishing a new prevailing wage classification for a particular craft or type of worker shall be consolidated in a single hearing before the Department, that the consolidation shall occur whether each separate hearing is conducted by a public body or the Department, and that the party requesting a consolidated hearing has the burden of establishing that there is no existing prevailing wage classification for the particular craft or type of worker in any of the localities under consideration. Effective immediately.
Status: Rules Committee
Service Tax
HB 750 Rep. David Miller (D-Dolton)
SB 750 Sen. James Meeks (I-Chicago)
This bill increases the personal income tax rate from 3% to 5% and increased the tax rate for corporations from 4.8% to 8%. It also brings a Service Tax to Illinois. The revenues generated will offset property taxes and increase funding for schools.
Status House: Rules Committee
NFIB Position: Oppose
Status Senate: Rules Committee
NFIB Position: Oppose
Labor Issues
HB 359 Rep. Linda Chapa LaVia (D-Aurora)
SB 155 Sen. Terry Link (D-Vernon Hills)
Creates the Painting, Drywall Finishing, and Glazing Contractor Licensing Act. Regulates painting, drywall finishing, and glazing contractors through licensure requirements. Provides for enforcement of the Act by the Department of Financial and Professional Regulation and the Painting, Drywall Finishing, and Glazing Contractor Licensing Board. Amends the Regulatory Sunset Act to set a repeal date for the Painting, Drywall Finishing, and Glazing Contractor Licensing Act of January 1, 2018. Effective immediately.
Status House: Executive Committee
NFIB Position: Watch/Oppose
Status Senate: Licensed Activity
HB 373 & HB 474 Rep. Jack Franks (D-Woodstock)
Creates the General Building Contractor Licensing Act. Provides for the licensure and regulation of general building contractors and specialty contractors by the Department of Financial and Professional Regulation. Creates the General Building Contractor Licensing Board. Sets forth provisions concerning powers and duties of the Board, exemptions from the Act, application procedures and qualifications, license expiration, renewal, and restoration, grounds for disciplinary action, penalties for violation of the Act, administrative procedures, and other requirements. Amends the Regulatory Sunset Act to repeal the General Building Contractor Licensing Act on January 1, 2018. Effective January 1, 2008.
Status: Registration & Regulation Committee
NFIB Position: Watch/Oppose
HB 374 Rep. Jack Franks (D-Woodstock)
Creates the Illinois Family and Medical Leave Act. Contains provisions similar to those in the federal Family and Medical Leave Act of 1993, except that it applies to a son-in-law, daughter-in-law, father-in-law, or mother-in-law who has a serious health condition, and some of the provisions of the federal law pertaining to federal employees and federal matters have been deleted or changed. Effective 6 months after becoming law.
Status: Labor Committee
NFIB Position: Oppose
HB 542 Rep. Cynthia Soto (D-Chicago)
Amends the Minimum Wage Law. Deletes language providing that an employee under 18 years of age may be paid up to 50¢ less than the wage required to be paid to employees who are at least 18 years of age. In provisions allowing an employer to pay an employee during the first 90 days of employment a wage that is not more than 50¢ less than the minimum wage, adds language requiring an employer to pay not less than the full minimum wage to a day or temporary laborer who is 18 years of age or older and to an employee who is 18 years of age or older and whose employment is occasional or irregular and requires not more than 90 days to complete. Effective July 1, 2007.
Status: Executive Committee
NFIB Position: Oppose
SB 134 Sen. Martin Sandoval (D-Chicago)
Creates the Illinois Labor Relations Act. Applies to employers who employ 10 or more employees other than: employees who are subject to the National Labor Relations Act or the Railway Labor Act; employees who are managerial employees, confidential employees, or supervisors; and employees of employers to whom the Act does not apply or to anyone licensed under the Real Estate License Act of 2000 (and provides that the Act does not apply to State officers and agencies, units of local government, school districts, and other public entities, or any entities that are specifically excluded under the Illinois Public Labor Relations Act). Provides that the State Panel of the Illinois Labor Relations Board shall administer and enforce the Act. Prohibits specified unfair labor practices. Provides that an employer and the exclusive representative of a unit of employees to whom the Act applies have the duty to bargain collectively. Provides for: dues deduction and fair share fees; unfair labor practice procedures; elections to determine exclusive representatives; disputes; enforcement (including administrative actions and actions in the circuit court and appellate court); rulemaking; enforcement of contracts; and other matters.
Status: Labor Committee
SB 732 Sen. Dave Syverson (R-Rockford)
Creates the Manufacturing Job Destination Tax Credit Act and amends the Illinois Income Tax Act. Provides for a credit of 25% of the Illinois labor expenditures made by a manufacturing company in order to foster job creation and retention in Illinois. Authorizes the Department of Revenue to award a tax credit to taxpayer-employers who apply for the credit and meet the certain Illinois labor expenditure requirements. Sets minimum requirements and procedures for certifying a taxpayer as an "accredited manufacturer" and for awarding the credit. Effective January 1, 2008.
Status: Rules Committee
NFIB Position: Watch/Support
SB 1386 Sen. Kimberly Lightford (D- Maywood)
Amends the Minimum Wage Law. Provides that, beginning January 1, 2011, the minimum wage shall be annually increased by the Department of Labor using the consumer price index for urban wage earners and clerical workers, and employees shall be paid the State minimum wage or the federal minimum wage, whichever is higher.
Status: Rules Committee
NFIB Position: Oppose
SB 1427 Sen. Martin Sandoval (D-Chicago)
Creates the Displaced Building Service Workers Protection Act. Provides protections to building service employees who are regularly assigned to a covered building on a full or part-time basis for at least 25 working days immediately preceding a transition in employment and who perform work in connection with the care or maintenance of an existing building. Provides that a successor employer shall retain for a transition employment period of 25 working days at the affected site the building service employees of the terminated building service contractor and its subcontractors, or other covered employer, employed at the site covered by the terminated building service contract or owned or operated by the former covered employer. Provides that, at the end of the 25 working day transition period, the successor employer shall perform written performance evaluations and offer continued employment to all covered building service employees who receive satisfactory ratings. Excludes from coverage employees who earn more than $25 per hour, work less than 6 hours per week, or serve in a managerial, supervisory, or confidential capacity. Sets forth exemptions. Provides that the contractor may require employees to submit to a criminal background check. Effective immediately.
Status: Rules Committee
NFIB Position: Oppose
SB 1498 Sen. David Koehler (D-Peoria)
Amends the Illinois Procurement Code. With respect to the criteria for status as a responsible bidder on State construction contracts, adds requirements concerning the provision of employee health insurance, training, and pension or retirement benefits
Status: Rules Committee
NFIB Position: Oppose
SB 1615 Sen. Dave Syverson (R-Rockford)
Amends the Illinois Business Regulatory Review Act. In a Section concerning the regulatory policy responsibilities of the Business Regulatory Review Committee, provides that the Committee shall identify effective and efficient ways of notifying small business about proposed and newly adopted rules
Status: Rules Committee
NFIB Position: Support
SB 1616 Sen. Dave Syverson (R-Rockford)
Creates the Job Impact Note Act. Requires that a note be prepared for a bill before second reading in the house of introduction concerning the impact of the bill on employment opportunities in Illinois. Also, requires a note for administrative rules before approval by JCAR. Requires the Commission on Government Forecasting and Accountability to prepare the notes.
Status: Rules Committee
NFIB Position: Support
SB 1700 Sen. Kimberly Lightford (D-Maywood)
Amends the Minimum Wage Law. Provides that, beginning July 1, 2011, the minimum wage shall be annually increased by the Department of Labor using the consumer price index for urban wage earners and clerical workers.
Status: Rules Committee
NFIB Position: Oppose
Small Business – Unfair Competition
HB 577 Rep. Michael Tryon (R-Crystal Lake)
Creates the Small Business Protection Act. Sets forth notice, comment, and hearing procedures that the State, a unit of local government, a school district, or a not-for-profit entity that receives governmental funding must follow before providing assistance to another such entity. Requires a hearing if a competing small business would lose market share because of the assistance. Preempts home rule powers. Exempts from the reimbursement requirements of the State Mandates Act.
Status: International Trade & Commerce Committee
NFIB Position: Support
UNIONS SEEK TO FLEX MUSCLE IN WASHINGTON, D.C.
NFIB lobbyist Brad Close, who manages the U.S. House, spoke to the Springfield AAC and Quincy AAC last week. He highlighted two initiatives being pushed by organized labor in the U.S. Capitol.
H.R. 800 - Employee Free Choice Act
More and more, employers are being forced to recognize labor unions without first holding a secret-ballot employee election – the election process that is guaranteed in law and administered by the national labor relations board (NLRB). To prevent intimidation or harassment, the law establishes that neither the union nor an employer may coerce, harass or restrain employees in exercising their right to choose whether or not to support the union. Each employee’s choice is made in the privacy of a voting booth, with neither the employer nor the union knowing how any individual voted.
In the last ten years, however, we have seen an increased effort by organized labor to seek union recognition outside of the protected secret-ballot process. The use of so-called “card check agreements” has become a critical component of labor’s organizing strategy which has struggled for years to win workplace elections. Under a card check system, a union gathers “authorization cards” signed by workers which supposedly express their desire to unionize. Under current law, an employer may voluntarily recognize unions based on card checks, but it is not required. An employer can always insist upon an election administered by the NLRB. However, employers are often pressured into accepting “card checks” by union picketing, threats, or comprehensive “corporate campaigns” to discredit or smear the employer publicly.
The card-check method is at the centerpiece of federal legislation shrewdly named as the Employee Free Choice Act, but it also contains provisions for triple damages from employers that violate the law as well as provisions for unions to obtain injunctions. Given the co-sponsorship levels in the 109th Congress in addition to the newly elected Democrat members, opposition to the legislation certainly faces an uphill battle. Democratic leaders supporting the act say it will be introduced in the spring. It would likely pass the House, but be stalled in the Senate and would face an all-but-certain veto from President Bush.
Family & Medical Leave Expansion
According to an NFIB national small business poll, small-business owners often compete for employees on the flexibility they can give. When we asked them if they provide flexible working hours when personal situations arise, 97 percent said they do so, and employee-size of firm has no relationship to the frequency that the benefit is given. Of those employees that requested leave, 67 percent were paid, received disability or took paid leave. That leave is now routinely given, even by those who are not legally bound to allow it, testifies to the fact that market pressures assure leave will continue to be commonly given regardless of legislative fiat.
Despite the fact that small-business owners exhibit remarkable flexibility when it comes to employee leave for health reasons, NFIB expects that mandated expansions to the Family and Medical Leave Act (FMLA) will become a priority of the new congress. Such expansions will burden employers with more regulations at a time when some firms are simply trying to stay in business. The existing condition seems to work reasonably well for most small employers. They can tighten policy when an employee abuses the benefit and grow the benefit when the employees need or merit special consideration. But that can only be done when small employers have flexibility.
For the last three decades, NFIB has fought inflexible FMLA requirements on small businesses and underscored the importance that mandated leave law not apply to employers with fewer than 50 employees—an exemption solidified in current law. Studies show that mandated leave will result in a decreased ability of employers to offer other benefits that employees may want more, such as health insurance. A sledgehammer approach to apply FMLA mandates to businesses with less than 50 employees is inappropriate and unnecessary.
For questions or comments on small-business issues contained in this edition of
Capitol Roundup please contact Illinois State Director Kim Clarke Maisch in the NFIB/Illinois office at 217-523-5471, or via e-mail at
mailto:%20kim.maisch@nfib.org
