HB3631 104TH GENERAL ASSEMBLY

LRB104 11420 HLH 21508 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB3631

Introduced 2/18/2025, by Rep. Kam Buckner

SYNOPSIS AS INTRODUCED:

20 ILCS 3105/21 new
30 ILCS 540/12 new

Amends the Capital Development Board Act and the State Prompt Payment Act. Provides that the Capital Development Board may issue direct payment to subcontractors for work performed on State-funded projects if: (1) the subcontractor has submitted an affidavit and supporting documentation verifying the amount due for work performed, including a copy of the subcontract agreement and evidence of work completion; (2) the prime contractor has failed to pay the subcontractor within 30 days after the prime contractor receives payment from the Board; and (3) the subcontractor has provided written notice of non-payment to the Capital Development Board and the prime contractor and has allowed the prime contractor a 10-day response period.

A BILL FOR

AN ACT concerning State government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Capital Development Board Act is amended by adding Section 21 as follows:

(20 ILCS 3105/21 new)

Sec. 21. Payment to subcontractors.

(a) The General Assembly finds and declares that:

(1) Subcontractors performing work on State-funded projects are essential to the completion of public construction.

(2) Delays in payments from prime contractors to subcontractors adversely affect the financial stability of subcontractors and disrupt project timelines.

(3) Allowing the Capital Development Board to pay subcontractors directly under specific circumstances promotes fair payment practices and ensures the timely completion of public projects.

(b) Notwithstanding any other provision of law, the Capital Development Board may issue direct payment to subcontractors for work performed on State-funded projects under the following conditions:

(1) the subcontractor has submitted an affidavit and supporting documentation verifying the amount due for work performed, including a copy of the subcontract agreement and evidence of work completion (e.g., invoices, progress reports, or certifications of completed work);

(2) the prime contractor has failed to pay the subcontractor within 30 days after the prime contractor receives payment from the Board; and

(3) the subcontractor has provided written notice of non-payment to the Capital Development Board and the prime contractor, allowing the prime contractor a 10-day response period.

(c) Upon receiving a valid claim from a subcontractor, the Capital Development Board shall notify the prime contractor and allow the prime contractor to dispute the claim within 10 business days. If no dispute or justification is provided by the prime contractor, or if the justification is deemed invalid by the Board, the Board shall remit payment directly to the subcontractor for the amount verified as due.

(d) Any payment made by the Capital Development Board to a subcontractor under this Section shall be deducted from future payments owed to the prime contractor.

(e) A prime contractor who fails to pay subcontractors in compliance with this Act shall be subject to penalties, including but not limited to, a 10% withholding on future payments and suspension or disqualification from bidding on future State contracts for up to 3 years.

(f) The Board shall adopt rules for implementing this Section, including procedures for submitting claims, verifying documentation, and resolving disputes.

Section 10. The State Prompt Payment Act is amended by adding Section 12 as follows:

(30 ILCS 540/12 new)

Sec. 12. Payment rights of subcontractors.

(a) Subcontractors working on State-funded projects managed by the Capital Development Board may submit claims for direct payment under the conditions outlined in Section 21 of the Capital Development Board Act.

(b) Any interest penalties due for late payments under this Act shall apply to payments owed to subcontractors.