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HB 5519

PLUMBING CONTRACTOR LICENSES

104th Regular Session Introduced by Joyce Mason

Strengthens annual plumbing contractor registration by tightening insurance, bonding, and workers’ compensation requirements and enabling faster license suspension for noncomplianc

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Bill Summary · HB 5519

Bill Overview

HB5519 (104th Illinois General Assembly) amends the Illinois Plumbing License Law to modify the registration process for plumbing contractors and strengthen certain compliance and enforcement provisions. The introduced measure is focused on annual registration cycles, notice requirements, insurance and bonding standards, and ties to workers’ compensation and state regulatory actions.

Main Purpose and Intent

  • Streamline and regulate the annual registration of plumbing contractors.
  • Improve oversight by ensuring sole proprietors, partnerships, and corporations maintain updated registration materials and proof of insurance.
  • Strengthen enforcement related to workers’ compensation and insurance obligations, including expedited suspension processes when violations are found.

Key Provisions and Changes

  • Registration Timing and Notices

    • The Department of Financial and Professional Regulation (the Department) must send notices to each licensee regarding the registration application on or before July 1 each year.
    • The Department must begin accepting application materials on or after July 1 each year.
    • Registrations historically expire September 30 each year.

  • Application Requirements

    • Applications must be filed annually with necessary details (names, addresses, and contact information for the relevant individual or entity; business name, address, phone, current plumbing license; and other information as required by rule).
    • Each application must include the applicable plumbing license information for the individual, partner, or officer, depending on business form.

  • Insurance and Bonding

    • Applicants must submit an original certificate of general liability insurance with minimums:
    • $100,000 per occurrence
    • $300,000 aggregate for bodily injury
    • $50,000 (or a $300,000 combined single limit) for property damage
    • Workers’ compensation insurance must meet a minimum of $500,000 employer’s liability.
    • No registration may be issued unless proof of insurance is provided and kept in force.

  • Indemnification Bond or Letter of Credit

    • Applicants must provide an indemnification bond of $20,000 or a letter of credit in the same amount for work performed under the Act and rules.

  • Workers’ Compensation Enforcement Provisions

    • If notified by the Illinois Workers’ Compensation Commission or the Department of Insurance of failures to secure workers’ compensation obligations, or related fines/settlements, the Department may suspend or revoke licenses or processing of applications.
    • A prima facie certification from the issuing body constitutes evidence of noncompliance.
    • Upon such certification, the Department may suspend all licenses or processing without a hearing, with a 60-day stay on enforcement, and notice by mail or email.
    • Suspension can be lifted when the violation is corrected. Due process protections apply.

  • Employee Licensing

    • All employees of a registered plumbing contractor who engage in plumbing work must be licensed plumbers or apprentice plumbers.

  • Annual Registration Fee

    • An annual registration fee will be required, with amount to be established by rule.

  • Reporting Changes

    • Contractors must promptly notify the Department of changes in business structure, name, location, or ownership/officer changes related to the listed licensed plumber. Failure to do so can lead to suspension or revocation.

  • Chicago Licensing Interaction

    • If a plumber’s license used for registration is issued by the City of Chicago, the contractor must forward a copy of that license to the Department upon renewal.
    • If a contractor’s registration is suspended or revoked, the Department will notify the City of Chicago to suspend/revoke corresponding city licenses.

Who It Affects

  • Plumbing contractors operating in Illinois (sole proprietors, partnerships, corporations) seeking registration.
  • Licensed plumbers and apprentice plumbers affiliated with registered contractors.
  • Businesses and individuals subject to workers’ compensation and insurance requirements.
  • City of Chicago plumbing licenses in cases where a Chicago-issued plumber’s license is involved.

Procedural and Timeline Considerations

  • Notices to licensees required by July 1 each year.
  • Registration materials accepted starting July 1 each year; registrations expire September 30.
  • Potential immediate suspension of licenses or registrations upon certified findings of noncompliance with workers’ compensation requirements, subject to due process.
  • Annual fees to be set by department rules.

This bill aims to tighten annual registration discipline, strengthen financial and insurance prerequisites, streamline enforcement for workers’ compensation violations, and ensure accurate, current business information for plumbing contractors.

Compiled from official sources — confirm details with the bill’s official record.

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