Your ASA Chicago government relations committee also ensures that subcontractors are represented by:
Supporting construction and business-friendly bills
Opposing bills with a potentially negative impact on the industry
Monitoring legislation at State and Local levels
Drafting legislation to improve and expand opportunities for ASA Chicago members
Supporting legislators who share in our positions through Political Action Committee (PAC) funds
For More Information About These Issues or to Join the Government Relations Committee, please contact Steve Boren, Chair.
Legistation We Are Monitoring:
Indemnification: Seeking to limit/reduce the indemnification clauses for the betterment of the ASAC Membership
Kotecki Rights: Seeks to limits exposure on Workers Compensation Claims to the Cap provided under the Kotecki ruling
Hrs. v. Wages in WC Rates
Licensing of Construction Trades
Pending Legislation We Are Monitoring:
Retention Reduction Bill: Seeks to limit retention and force reduction of retention at the 50% completion point
Public Bond Act: Seeks to provide protection for subcontractors and material suppliers for subdivision/private work where part of the project is turned over to the local municipality
Home Repair and Remodeling Act: Seeks to modify the act so that the actions of a general/prime contractor do not adversely effect the rights of subcontractors and material suppliers on that same project.
Legislation that the Government Relations Committee Assisted in Proposing and has Passed:
Prompt Pay Act for both Public & Private projects: Allows for the recovery of interest on delayed payments
Against Public Policy to waive lien rights: Restricts or disallows for the waiving of lien rights
Lien Rights - Rental Equipment: Affords rental equipment the same rights as other construction trades
Repeal Structural Work Act
Two separate and distinct claim on public projects: Mandates that the Claim on Funds and the Bond Claim on public projects are two separate rights and courses of action
Prevented Legislation with Assistance from the Government Relations Commmittee:
Unfair Utility Act
Return of the Structural Work Act
Review all bills which may have an impact on the construction industry and/or our member firms: Comments submitted to legislators and committee members, Testimony provided at Legislative Committee hearing, Alerts provided to ASAC Members
COMMUNICATION ALERTS:
Red Alert - Proposed or Current State of IL Contracts
If your firm has any proposed or current contracts with a value of greater than $50,000.00 (even in the aggregate) with the State of Illinois, then the following MUST be addressed immediately:
If your business has $50,000 in State contracts or $50,000 in proposed contracts then the firm must register with the State Board of Election electronically by Sept 30th.
Secondly the firm is prohibited from making a political contribution to any Declared (having filed their petitions for) statewide candidate.
Lastly The contractor is required to inform any political committee to which it makes a contribution that it is affiliated with a business entity registered with the State Board of Elections.
All businesses previously registered on paper with the State Board of Election now have until September 30Th to re-register.
This legislation States as follows:
" Businesses having contracts of $50,000 and proposals on State contracts total more than $50,000, or whose aggregate pending bids and proposals on State contracts combined with the business entity's aggregate annual total value of State contracts exceed $50,000, and any affiliated entities or affiliated persons of such business entity, are prohibited from making any contributions to any political committee established to promote the candidacy of the officeholder responsible for awarding the contract on which the business entity has submitted a bid or proposal during the period beginning on the date the invitation for bids or request for proposals is issued and ending on the day after the date the contract is awarded.
To perform the on-line registration: Click here to perform the online registration. Information regarding businesses includes the business number (assigned by the Board, not a tax identification number), name, affiliates, activity log, and contributions from businesses and their affiliates. Searches can be conducted on business or affiliate names and addresses. All of this information is linked as you will see when you look at the site. In addition, there is a link to the Comptroller’s website to view information regarding contracts; a link to the Procurement site to view contracts currently available for bid; a link for businesses to register or update registrations; and a link to the Business FAQs, the public act, the Board’s emergency rules, and proposed rules regarding Business Registration.
This information is being distributed with the permission and assistance of IMSCA, the Illinois Mechanical Specialty Contractors Association and Louis Giordano, its Executive Director.
Red Alert - Green Construction Ordinance-Substitute ordinance was recently approved in the Cook County Construction Committee.
As initially proposed, the ordinance would have required all on-road diesel equipment used by all contractors on public contracts in suburban Cook County to be retrofit with Level 3 environmental controls within 2 years. The substitute ordinance limits the application to contracts issued by Cook County in suburban Cook County. It also extends the time frame for installation of Level 3 environmental controls for both on-road and off-road diesel equipment to January 1, 2014 for prime contractors and January 1, 2016.
The substitute ordinance reflects several changes negotiated by ASA Chicago with the help of Women Construction Owners & Executives (WCOE) and the Hispanic American Construction Industry Association (HACIA). The Illinois Road & Transportation Builders Association (IRTBA) pushed for even longer implementation times but were unable to convince a majority of the Committee members to agree. The Cook County Department of Environment has also agreed to work closely with ASA Chicago members to secure grant funds that are available through the federal government to help cover the cost of these retrofits. The types of grants vary, as do the requirements to obtain these grants. A government agency must serve as the sponsor for the grant but the monies can be used to benefit a for-profit private contractor.
Orange alert - ASA Chicago is watching this carefully: The City of Chicago has begun cracking down on contractors
It is ASA Chicago's understanding that the City of Chicago has begun cracking down on contractors and this tax is a source of revenue, which is needed by the city. After review of the following information, each firm is should contact their legal representative and/or professional advisors as how to address this issue.
The bulletin states:
Recently, the Chicago Department of Revenue has been sending out letters to certain companies that it believes have not been remitting the Chicago Use Tax . If you purchase materials outside of Chicago, but use those materials on projects in Chicago, you are subject to the Chicago Use Tax. As stated in a recent Department of Revenue letter, "The Chicago Use Tax is imposed upon the privilege of using in the City nontitled tangible personal property purchased at retail from a retailer located outside of the City." The rate of the Chicago Use Tax is 1% of the material's purchase price.
The Chicago Department of Revenue appears to be offering to waive all penalties for previous unpaid Use taxes, if companies voluntarily disclose and pay the tax under what is called the Voluntary Disclosure Program. Again, to quote the Department of Revenue, "Under this program, you will be required to calculate and remit your tax amounts due for a four-year period immediately prior to the date on which you accepted participation in the program. In exchange for voluntarily disclosing your unpaid taxes, the Department agrees to waive all penalties that would otherwise apply as well not assessing periods prior to the four-year period covered by the voluntary disclosure."
If you are audited, and you are found subject to the Use tax and not in compliance, you will be assessed for all tax years open by statute and assessed all applicable penalties.
Green alert - The ASA Chicago Government Relations Committee is sharing this information. No Action is Required.
PROTECTING YOURSELF FROM HOME REPAIR FRAUD
From Lisa Madigan
Each year, my Consumer Fraud Bureau prosecutes numerous contractors who have defrauded unsuspecting homeowners. Still, the best way to combat home repair fraud is to prevent it from happening in the first place. With home repair season in full swing, this month's column provides some basic tips to help you avoid getting scammed.
