Bill
HB 3266
Expands Prevailing Wage coverage to private projects in TIF districts funded with public money, except small ($25k+) and historic-district carve-outs.
Status & Procedural Timeline
- Introduced: Feb 18–25, 2025 (Rep. Harry Benton).
- Passed Illinois House: April 10, 2025 (77–35).
- Arrived in Senate: April 14, 2025; assigned to Assignments and then to Executive.
- Senate Committee Amendment No. 1 filed by Sen. Javier L. Cervantes: Oct 28, 2025; amendment referred to Assignments and then to Executive on Oct 29, 2025.
- Bill remains pending in the Senate (as amended).
Purpose / Intent
- To expand the scope of the Illinois Prevailing Wage Act by clarifying and broadening the statutory definition of “public works,” specifically to require prevailing wage coverage for certain private projects located in tax increment financing (TIF) districts when those projects are paid for wholly or in part with public funds.
Key Provisions
- Adds to the Prevailing Wage Act’s definition of “public works”:
- All private construction projects located in a tax increment financing (TIF) district that are paid wholly or in part with public funds are subject to prevailing wage requirements, except:
- Projects with a total cost under $25,000; and
- Projects located in designated historic districts where specialty contractors are required because of that designation.
- Retains existing Prevailing Wage Act coverage language for public bodies and projects funded in whole or part by state or local public funds, and enumerates numerous funding mechanisms and project types already considered “public works” (e.g., projects funded by Build Illinois bonds, school construction funds, certain public‑private agreements, renewable energy facilities, electric vehicle charging station projects, large fiber‑optic builds exceeding 15 aggregate miles, corrective actions under the Underground Storage Tank Fund, power‑washing work by public bodies, biosolids removal/disposal, etc.).
- Confirms that prevailing wage coverage includes maintenance, repair, assembly, disassembly, and work on leased property when public funds are involved.
- Preserves common exclusions: owner‑occupied single‑family or owner‑occupied units in multi‑family residences, certain owner‑performed agricultural conservation work, and other specified exceptions.
Who Would Be Affected
- Private developers and their contractors/subcontractors undertaking projects inside TIF districts that receive public funds (even partially).
- Local governments and public bodies that use TIF or other public funds to support private development.
- Construction workers on those projects, who would be entitled to prevailing wages and related protections under the Prevailing Wage Act.
- Potential indirect impacts on project costs, bidding, and financing for developments using TIF funds.
Potential Fiscal and Practical Impacts
- Likely increase in labor costs for qualifying private projects in TIF districts (depending on prevailing wages for the locality), which could affect project budgets, bids, and development feasibility.
- Intended benefits include higher wage standards for construction workers on these projects and greater alignment of public subsidy with prevailing‑wage labor standards.
- Administrative impact on municipalities, developers, and the Illinois Department of Labor (enforcement, compliance monitoring, wage determinations).
Sponsors and Support
- Primary sponsor: Rep. Harry Benton (with multiple House and Senate co-sponsors). Senate Amendment No. 1 filed by Sen. Javier L. Cervantes.
Notes
- The bill primarily modifies the definitional scope of “public works” in the Prevailing Wage Act; prevailing wage mechanics (wage determination, reporting, penalties) remain governed by the Act. The $25,000 threshold and historic‑district carve‑out are the principal exemptions for TIF‑based coverage.
Compiled from official sources — confirm details with the bill’s official record.
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