Last year HB 924 (Hoffman/Harmon) squeaked out of the Illinois House but stalled in the Illinois Senate due to intense opposition from business, local government and minority contractors. This week a new proposal was introduced to try to appease some of the opposition.
As introduced, HB 924 requires contractors and subcontractors that want to bid on prevailing wage work to “participate” in an apprenticeship program. NFIB has contended the bill will essentially shut out nonunion businesses from being able to bid on work with their local governmental bodies, school districts and in some cases private development that receives state financial assistance.
The amendment that surfaced this week creates the “Illinois Responsible Bidder on Public works Projects Act,” but still has the same apprenticeship requirements that we oppose. The only change is that it allows, the first year, for a $100,000 small contract exemption which is then reduced to $50,000 in the second phase-in year and $20,000 the third year and beyond. So in other words the first year of implementation those contracts that are bid for $100,000 or less would not have to adhere to the apprenticeship requirement. Unfortunately that amount is reduced to $20,000 over the next two years.
NFIB believes strongly that mandating small businesses to participate in an apprenticeship program is both cost prohibitive and makes little sense in certain industries. It is merely a power grab by organized labor to limit those nonunion contractors who currently are doing this work.
The local government groups and school districts are also opposed to this bill because it will limit the number of contractors that can qualify to bid on work. Fewer bidders lessen competition and increase the cost of projects for taxpayers. It also makes it more difficult for local government units to procure local contractors and use local labor.
Big labor has made it quite clear that this is their top priority to get passed by the end of the year. Perhaps fear of a new pro-business governor is prompting the renewed interest in this issue.
