Bill
SB 2406
SB 2406 exempts construction employers with bona fide CBAs from Transportation Benefits Program requirements for employees covered by those CBAs.
Bill number: SB 2406
Sponsor: Sen. Ram Villivalam
Subject: Transportation Benefits Program Act (insurance/transportation benefits) — amends 820 ILCS 63/5 and 63/20
Introduced: 02/07/2025 (received 03/24/2025 per document)
Statutory citations amended: 820 ILCS 63/5; 820 ILCS 63/20
Note on document inconsistencies
- The bill text provided concerns amendments to the Transportation Benefits Program Act (definitions and an exemption for certain construction employers). The header you supplied (about motor vehicle liability insurance) does not match the bill content.
- Legislative action entries in the file are internally inconsistent (a “Died In Committee” entry appears alongside later entries indicating passage, enrollment, and a gubernatorial signature with an effective date). Below I summarize the substance of the bill text itself and then note the procedural inconsistencies.
Purpose and intent
- To clarify and revise definitions in the Transportation Benefits Program Act and to exempt covered employers in the construction industry from the Act’s requirements with respect to employees who are covered by bona fide collective bargaining agreements.
Key provisions
- Definitions (820 ILCS 63/5)
- Revises/clarifies the meaning of “construction industry,” broadly describing activities such as constructing, altering, refurbishing, fabricating, maintenance, landscaping, demolition, excavation, repair, remodeling, and related on-site work.
- Defines “covered employee” as a person who performs an average of at least 35 hours of work per week on a full‑time basis.
- Refines “covered employer” to include employers (corporations, individuals, partnerships, LLCs, associations, governments, nonprofits, etc.) located within specified townships/geographic areas (several Cook, Lake, DuPage, Will and other listed townships) and that employ a threshold number of employees (the text ties coverage to employers with 25 or more covered employees at an address within one mile of fixed‑route transit service).
- Confirms definitions for “public transit” (systems under the Regional Transportation Authority) and “transit pass” (passes, tokens, fare cards, vouchers).
- Application (820 ILCS 63/20)
- Adds an explicit exemption: the Act does not apply to a covered employer in the construction industry with respect to employees for whom the employer has entered into a bona fide collective bargaining agreement.
- Preserves employees’ rights to bargain collectively and states that a bona fide collective bargaining agreement may waive requirements only if the waiver is explicit and unambiguous.
Who is affected
- Directly affected: Employers covered by the Transportation Benefits Program Act and their employees in the enumerated geographic areas, especially those in the construction industry.
- Specifically, construction employers that have bona fide collective bargaining agreements with their employees would be exempt from the Act’s transportation‑benefits requirements for those employees.
- Employees in construction covered by collective bargaining agreements would not be governed by the Act’s default benefit rules but would remain governed by the terms of their CBAs.
- Non-construction employers, construction employers without CBAs, and employees not subject to a CBA remain subject to the Act.
Procedural/timeline notes
- The bill text lists amendments to 820 ILCS 63/5 and 63/20.
- The document’s legislative history appears contradictory: it contains a “Died In Committee” notation (02/04/2025) as well as subsequent entries indicating committee reports, passage in both chambers, enrollment, and a gubernatorial signature on 06/20/2025 with an effective date of 09/01/2025.
- Recommendation: Consult the official Illinois General Assembly or Secretary of State records to confirm final status, enactment, and the authoritative effective date because the provided action history is inconsistent.
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
