As the legislative year started we expected the session would be relatively slow except for major State Government issues like a capitol projects bill, education funding, health care, gaming and a few other issues.

The IMSCA Board decided to propose two-pieces of legislation that would benefit the construction industry. These bills were to reduce the amount of retain age allowed on a project to 5% reducing to 2 1/2 % upon 50% completion of the job. The idea was to create a private sector bill and a Government bill. The private sector bill is HB 4920 sponsored by Rep. Lang. The second bill is HB 4794 Sponsored by Rep. Schmitz. The private sector bill has passed out of committee moved past second reading and is waiting to be called on third reading for passage out of the House. Rep Schmitz bill wasn’t so lucky it was held in committee because of strenuous opposition from the Il. Municipal League and the Ass. Of Sanitary Districts.

There are several other bills that we are working on but as we are going to print there is a major change in the legislative agenda. On April 8th Rep.Fritchy introduced an amendment to HB 2094, which would re –establish the Structural Work Act in Illinois.

Due to the reemergence of this issue The Coalition to Protect Illinois Jobs has been reinstituted to fight this legislation. . The Coalition consists of all major business groups in Illinois. As one of the founding members of this group, IMSCA will be very active in all efforts to stop this bill .The following information from the Coalition position paper will give you a better understanding of the legislation and its impact on the business community in Illinois.

The Structural Work Act, now being called the Construction Safety Act, was a 1907 law that originally intended to allow certain employees compensation for workplace injuries that occur on a scaffold. This was PRIOR to the enactment of the Illinois Workers’ Compensation Law in 1911. With the passage of Illinois’ Workers’ Compensation Law, the Structural Work Act remained dormant until the 1950’s, when an Illinois court decision struck down a provision that prohibited third party lawsuits. From that point, until its repeal in 1995, a worker could collect benefits under Workers’ Compensation and then sue everyone involved in the project regardless of fault, including owners, suppliers, contractors, subcontractors and designers.

Some important points to consider:

• According to the Watson-Wyatt Group, in a study done in 1998, the Structural Work Act cost Illinois employers $113 million annually in direct insurance costs, and as much as $170 million when indirect costs, court appearances, depositions and other expenses are included. These costs are passed on to all consumers.
• The Structural Work Act is not a safety statute. In fact, since the repeal of the Structural Work Act, there have been fewer construction related fatalities even though construction employment has grown by 4 percent each year. OSHA requirements drive safety.
• Reinstating the Structural Work Act will increase construction costs, which will stifle both private investment and public works projects. It will also send an alarming message to companies looking to locate, expand or build in Illinois.
• Employers are faced with increased legal costs defending both workers’ compensation and Structural Work Act claims. Being removed from a lawsuit prior to trial still creates unnecessary legal costs for employers.
• Architects, engineers and land surveyors, building owners and developers are placed in jeopardy under the Structural Work Act because they can be sued even though they are not involved in on-site job safety.