104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 HB3704 Introduced , by Rep. Lawrence "Larry" Walsh, Jr. SYNOPSIS AS INTRODUCED: 65 ILCS 5/11-135.5-35 Amends the Regional Water Commission Division of the Illinois Municipal Code. Provides that in connection with a contract by a commission for the construction of all or any portion of a waterworks system or other public improvement of the commission, the commission must enter into a project labor agreement with the applicable local building trades council or the applicable local buildings trades council must enter into a project labor agreement with the general contractor selected by the commission (rather than the commission must enter into a project labor agreement with the applicable local building trades council) prior to the commencement of any and all construction, building, renovation, demolition, or any material change to the structure or land. Effective immediately. LRB104 09883 RTM 19952 b A BILL FOR 104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 HB3704 Introduced , by Rep. Lawrence "Larry" Walsh, Jr. SYNOPSIS AS INTRODUCED: 65 ILCS 5/11-135.5-35 65 ILCS 5/11-135.5-35 Amends the Regional Water Commission Division of the Illinois Municipal Code. Provides that in connection with a contract by a commission for the construction of all or any portion of a waterworks system or other public improvement of the commission, the commission must enter into a project labor agreement with the applicable local building trades council or the applicable local buildings trades council must enter into a project labor agreement with the general contractor selected by the commission (rather than the commission must enter into a project labor agreement with the applicable local building trades council) prior to the commencement of any and all construction, building, renovation, demolition, or any material change to the structure or land. Effective immediately. LRB104 09883 RTM 19952 b LRB104 09883 RTM 19952 b A BILL FOR
104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 HB3704 Introduced , by Rep. Lawrence "Larry" Walsh, Jr. SYNOPSIS AS INTRODUCED:
65 ILCS 5/11-135.5-35 65 ILCS 5/11-135.5-35
65 ILCS 5/11-135.5-35
Amends the Regional Water Commission Division of the Illinois Municipal Code. Provides that in connection with a contract by a commission for the construction of all or any portion of a waterworks system or other public improvement of the commission, the commission must enter into a project labor agreement with the applicable local building trades council or the applicable local buildings trades council must enter into a project labor agreement with the general contractor selected by the commission (rather than the commission must enter into a project labor agreement with the applicable local building trades council) prior to the commencement of any and all construction, building, renovation, demolition, or any material change to the structure or land. Effective immediately.
LRB104 09883 RTM 19952 b LRB104 09883 RTM 19952 b
LRB104 09883 RTM 19952 b
A BILL FOR
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HB3704 LRB104 09883 RTM 19952 b
1 AN ACT concerning local government.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Municipal Code is amended by
5 changing Section 11-135.5-35 as follows:
6 (65 ILCS 5/11-135.5-35)
7 Sec. 11-135.5-35. Revenues; rates; costs; construction
8 contracts.
9 (a) Revenue fund. Whenever bonds are issued under this
10 Division, the revenue received from the operation of the
11 properties under the control of the commission shall be set
12 aside as collected and deposited in a separate fund to be used
13 only (1) in paying the cost of the operation and maintenance of
14 those properties, (2) in providing an adequate depreciation
15 fund, (3) in paying the principal of and interest upon the
16 revenue bonds issued by the commission, as provided by this
17 Division, (4) to comply with the covenants of the ordinance or
18 resolution, or the master trust indenture or any applicable
19 supplemental trust indenture or both, authorizing the issuance
20 of such bonds, and (5) to carry out the corporate purposes and
21 powers of the commission.
22 (b) Rates and charges for waterworks system. If the
23 commission has charge of the operation of a complete
104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 HB3704 Introduced , by Rep. Lawrence "Larry" Walsh, Jr. SYNOPSIS AS INTRODUCED:
65 ILCS 5/11-135.5-35 65 ILCS 5/11-135.5-35
65 ILCS 5/11-135.5-35
Amends the Regional Water Commission Division of the Illinois Municipal Code. Provides that in connection with a contract by a commission for the construction of all or any portion of a waterworks system or other public improvement of the commission, the commission must enter into a project labor agreement with the applicable local building trades council or the applicable local buildings trades council must enter into a project labor agreement with the general contractor selected by the commission (rather than the commission must enter into a project labor agreement with the applicable local building trades council) prior to the commencement of any and all construction, building, renovation, demolition, or any material change to the structure or land. Effective immediately.
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LRB104 09883 RTM 19952 b
A BILL FOR
65 ILCS 5/11-135.5-35
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1 waterworks system, including the distribution mains, the
2 commission shall establish rates and charges for water and the
3 use of commission waterworks system facilities, which shall be
4 sufficient at all times to pay the cost of operation and
5 maintenance, to provide an adequate depreciation fund, to pay
6 the principal of and interest upon all revenue bonds issued as
7 provided by this Division, to comply with the covenants of the
8 ordinance or resolution, or the master trust indenture or any
9 applicable supplemental trust indenture or both, authorizing
10 the issuance of such bonds, and to carry out the corporate
11 purposes and powers of the commission. Charges and rates shall
12 be established, revised, and maintained by ordinance and
13 become payable as the commission may determine by ordinance.
14 (c) Rates and charges for water source of supply. If the
15 commission has charge of the operation of a common source of
16 supply of water, the municipalities represented by the
17 commission shall contract with the commission for water. These
18 municipalities shall establish such charges and rates for
19 water supplied by them to consumers as will be sufficient at
20 all times (1) to pay the cost of operation and maintenance of
21 the respective waterworks systems (or combined waterworks and
22 sewerage systems) of the municipalities, (2) to provide an
23 adequate depreciation fund therefor, (3) to pay the principal
24 of and interest on all revenue bonds of the municipalities
25 payable from the revenues of the waterworks system (or
26 combined waterworks and sewerage system), and (4) to pay the
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1 charges and rates established by the commission for the sale
2 of water by the commission to, and the use of commission
3 waterworks system facilities by, those municipalities. The
4 commission shall establish such charges and rates for water
5 supplied to those municipalities and the use of commission
6 waterworks system facilities as will be sufficient at all
7 times (1) to pay the cost of operation and maintenance of the
8 common source of supply of water, (2) to provide an adequate
9 depreciation fund therefor, (3) to pay the principal of and
10 interest on the revenue bonds issued by the commission, (4) to
11 comply with the covenants of the ordinance or resolution, or
12 the master trust indenture or any applicable supplemental
13 trust indenture or both, authorizing the issuance of such
14 bonds, and (5) to carry out the corporate purposes and powers
15 of the commission, under the provisions of this Division.
16 Contracts entered into between the commission and the
17 specified municipalities shall include covenants for the
18 establishment of rates and charges as provided in this
19 Section.
20 (d) Pension costs. Contributions to a retirement fund or
21 other pension alternative authorized by the Illinois Pension
22 Code, including, without limitation, the Illinois Municipal
23 Retirement Fund, by commissions created under this Division
24 which have been included under the retirement fund or other
25 pension alternative shall be considered a cost of operation
26 and maintenance for the purposes of this Section.
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1 (e) Enforcement of obligations. An owner of a bond issued
2 under this Division, a trustee under a master trust indenture
3 or supplemental trust indenture or both with respect to the
4 bonds issued under this Division, or both the owner and
5 trustee may, in a civil action, mandamus action, or other
6 proceeding, enforce and compel performance of all duties
7 required by this Division to be performed by such a commission
8 or by any of the municipalities, including the making of rates
9 and charges, the collecting of sufficient revenue, and the
10 application thereof, as provided in this Division.
11 (f) Construction contracts. All or any portion of a
12 waterworks system or other public improvement of such a
13 commission, when the expense thereof will exceed the greater
14 of (i) $25,000 or (ii) the amount of expense above which a work
15 or public improvement by a municipality must be let to the
16 lowest responsible bidder after advertising for bids under
17 Section 8-9-1 of this Code, shall be constructed, maintained,
18 or repaired either: (1) by a contract let to the lowest
19 responsible bidder after advertising for bids, in the manner
20 prescribed by the commission's bylaws, rules, and regulations
21 and by the vote required as established in the
22 intergovernmental agreement pursuant to Section 11-135.5-25;
23 or (2) without advertising for bids, if authorized by a vote of
24 greater than a majority of all the commissioners as
25 established in the intergovernmental agreement pursuant to
26 Section 11-135.5-25. The commission's bylaws, rules, and
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1 regulations shall provide for an alternative procedure for
2 emergency procurement if an emergency makes it impracticable
3 to follow the procedures in this subsection.
4 (g) Alternative project delivery. A commission may use
5 alternative project delivery methods if the commission
6 determines it to be in the commission's best interest for a
7 particular project. An alternative project delivery method may
8 include, without limitation, design-build or
9 construction-manager-at-risk. All notices for the procurement
10 of goods, services, or work to be provided pursuant to an
11 alternate delivery method shall include all requirements for
12 the goods, services, or work to be procured. All awards of
13 contracts or agreements for the procurement of goods,
14 services, or work to be provided pursuant to an alternate
15 delivery method shall be made on the basis of demonstrated
16 competence and qualifications and with due regard for the
17 principles of competitive selection. As part of an alternate
18 project delivery procurement process, prior to submission of
19 proposals, the commission may conduct meetings and exchange
20 confidential information with proposers to promote
21 understanding of the request for proposals, review alternative
22 design concepts, or discuss other issues related to the
23 procurement.
24 As used in this subsection:
25 "Construction-manager-at-risk" means a delivery method in
26 which the party proposing to be the construction manager
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1 commits to be responsible for performance of certain
2 preconstruction services and, if the parties reach agreement
3 on key terms, becomes responsible for construction of the
4 project.
5 "Design-build" means a delivery method that provides
6 responsibility within a single contract for furnishing the
7 architectural, engineering, land-surveying, and related
8 services for the project, as well as the labor, materials,
9 equipment, and other construction services for the project.
10 (h) Procurement goals and requirements. A commission may
11 establish goals or requirements for the procurement of goods
12 and services and for construction contracts to promote and
13 encourage the continuing economic development of (i)
14 businesses that are owned and operated by minorities, women,
15 persons with disabilities, or veterans; (ii) businesses that
16 are located within the territory of one or more of the
17 municipalities that are members of the commission; (iii)
18 businesses that employ persons who reside in the territory of
19 one or more of the municipalities that are members of the
20 commission; (iv) businesses that are located within the
21 territory of a municipality having more than 2,000,000
22 inhabitants in which a portion of the commission's waterworks
23 system or other commission improvement is located; or (v)
24 businesses that employ persons who reside in the territory of
25 a municipality having more than 2,000,000 inhabitants in which
26 a portion of the commission's waterworks system or other
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1 commission improvement is located.
2 A commission may also establish other goals or
3 requirements that result in the award to a responsible bidder
4 other than the lowest responsible bidder if the commission
5 determines that the award is in the commission's best
6 interests, notwithstanding the requirements of subsection (f).
7 Goals or requirements that are set by a commission that result
8 in a preference being applied to a bidder or proposer, who has
9 met those goals or requirements, in a commission's process for
10 awarding construction contracts and for the procurement of
11 goods and services must comply with the constitutional
12 standards applicable to the preferences.
13 (i) Contract assignment. A member municipality may enter
14 into a contract for any portion of a waterworks system or other
15 public improvement of a commission pursuant to a contracting
16 method that is consistent with the requirements applicable to
17 the municipality and generally consistent with the principles
18 in subsection (f) or (g). The commission may accept assignment
19 of such a contract and of payment obligations under that
20 contract.
21 (j) Project labor agreement. In connection with a contract
22 by a commission for the construction of all or any portion of a
23 waterworks system or other public improvement of the
24 commission, the commission must enter into a project labor
25 agreement with the applicable local building trades council or
26 the applicable local buildings trades council must enter into
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1 a project labor agreement with the general contractor selected
2 by the commission prior to the commencement of any and all
3 construction, building, renovation, demolition, or any
4 material change to the structure or land.
5 (Source: P.A. 102-684, eff. 12-16-21; 102-1134, eff. 2-10-23.)
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