Attorney General Opinions

Industrial bond projects

PROJECTS constructed under the Industrial Revenue Bond Act (Ill. Rev. Stat. 1977, ch. 24, sec. 11-74-1 et seq.) are public works for the purposes of the Prevailing Wage Act (Ill. Rev. Stat. 1977, ch. 48, sec. 39s-1 et seq.) and the Preference to Citizens on Public Works Projects Act (Ill. Rev. Stat. 1977, ch. 48, sec. 269 et seq.). This means that Illinois workers must be hired and paid the prevailing wage for their work on such projects, the attorney general said in ruling S-1476 issued to John Castle, director of the Department of Commerce arid Community Affairs, and William M. Bowling, director of the Department of Labor.

The Industrial Revenue Bond Act establishes that municipalities may issue bonds for industrial projects. Section 2 of the Prevailing Wage Act defines public works as "all fixed works constructed for public use by any public body, whether or not done under public supervision or direction, or paid for wholly or in part out of public funds." Industrial projects financed by municipal revenue bonds therefore fall under the definition of public works. The fact that the project will be owned or operated by a private enterprise has little bearing because the Prevailing Wage Act applies only to projects which are being built. The project will maintain its public nature as long as the municipality chooses to maintain ownership. In addition, the attorney general said the term "public use" has acquired two different meanings: "public access" and "public benefit." Thus a municipally financed industrial project falls under the definition of public work even though the public may not ultimately have access to it. Finally, the Industrial Revenue Bond Act and the Preference to Illinois Citizens Act are both aimed at the public benefit of alleviating unemployment in Illinois. The attorney general noted that there have been decisions in two states which rule that industrial bond projects are not public works and not subject to the prevailing wage laws. However, he held that in Illinois it is clear the prevailing wage law is to be applied in every situation where the project fits the definition of public work, and there is nothing in the Industrial Revenue Bond Act that would exempt industrial bond projects from this definition.

Sheriffs' liability

S-1474: The Department of Revenue is not required to furnish a bond or a hold harmless agreement to protect sheriffs from liability when they act upon a seizure warrant issued by the department for unpaid taxes under the Retailers' Occupation Tax Act (Ill. Rev. Stat. 1977, ch. 120, sec. 444 d-f). However, sheriffs already have adequate protection from liability under the Local Governmental and Employees Tort Immunity Act which provides that "a public employee is not liable for his act or omission in the execution or enforcement of any law unless such act or omission constitutes willful and wanton negligence" (Ill. Rev. Stat. 1977, ch. 85, sec. 2-202).

Workmen's comp rates

S-1475: The Department of Insurance may approve a rating plan for workmen's compensation and employer's liability insurance rates that does not include schedule rating. It is generally recognized that abolishing schedule rating would have no effect on the fairness of rates, but it is likely that such action would inhibit competition. The Illinois Insurance Code forbids rates that are "inadequate, excessive or unfairly discriminatory," but does not require that the effect on competition be a factor in approving a rate plan (Ill Rev. Stat. 1977, ch. 73, sec. 1065.1). Illinois is currently the only state that allows schedule rating.

Township conflict of interest

S-1477: A county board member who is also a township supervisor may vote on the question of the allocation of county funds to the township road district, even if one of the districts is in his township, because the township roads are under the jurisdiction of the district highway commissioner, and the road district is separate and distinct from the town or township (Ill. Rev. Stat. 1977, ch. 121, sec. 6-101 et seq.). The simultaneous holding of the offices of county board member and township supervisor has been statutorily authorized (Ill. Rev. Stat. 1978 Supp., ch. 102, sec. 4.11). Although the law also specifies circumstances in which the dual officeholder is forbidden to vote because of potential conflict of interest (Ill. Rev. Stat. 1978 Supp., ch. if sec. 3 and ch. 139, sec. 126.10), the potential for a conflict of interest docs not exist in this case.

Water supply systems

S-1471: Persons installing, maintaining, altering or extending municipal or other potable water distribution systems are not subject to the provisions of the Illinois Plumbing License Law (Ill. Rev. Stat. 1977, ch. 111, sec. 1101 et seq.) The definition of plumbing within that law has to do with systems in and around buildings, and mentions a water supply system only as something to which plumbing is connected (Ill. Rev. Stat. 1977, ch. 111, sec. 1103). Therefore, since water distribution systems are not plumbing systems, those who service supply systems are not engaged in plumbing, and are not subject to the plumbing law.

28/April 1980/Illinois Issues