Sen. Martin A. Sandoval

Filed: 3/14/2011

 

 


 

 


 
09700SB0133sam002LRB097 06276 PJG 52656 a

1
AMENDMENT TO SENATE BILL 133

2    AMENDMENT NO. ______. Amend Senate Bill 133 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Procurement Code is amended by
5changing Section 20-120 as follows:
 
6    (30 ILCS 500/20-120)
7    Sec. 20-120. Subcontractors.
8    (a) Any contract granted under this Code shall state
9whether the services of a subcontractor will or may be used.
10The contract shall include the names and addresses of all known
11subcontractors with subcontracts with an annual value of more
12than $25,000 and the expected amount of money each will receive
13under the contract. For procurements subject to the authority
14of the chief procurement officer appointed pursuant to
15subsection (a)(2) of Section 10-20, the contract shall include
16only the names and addresses of all known subcontractors of the

 

 

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1primary contractor with subcontracts with an annual value of
2more than $25,000. The contractor shall provide the chief
3procurement officer or State purchasing officer a copy of any
4subcontract with an annual value of more than $25,000 so
5identified within 20 days after the execution of the State
6contract or after execution of the subcontract, whichever is
7later. A subcontractor, or contractor on behalf of a
8subcontractor, may identify information that is deemed
9proprietary or confidential. If the chief procurement officer
10determines the information is not relevant to the primary
11contract, the chief procurement officer may excuse the
12inclusion of the information. If the chief procurement officer
13determines the information is proprietary or could harm the
14business interest of the subcontractor, the chief procurement
15officer may, in his or her discretion, redact the information.
16Redacted information shall not become part of the public
17record.
18    (b) If at any time during the term of a contract, a
19contractor adds or changes any subcontractors, he or she shall
20promptly notify, in writing, the chief procurement officer,
21State purchasing officer, or their designee of the names and
22addresses and the expected amount of money each new or replaced
23subcontractor will receive. The contractor shall provide to the
24responsible chief procurement officer a copy of the subcontract
25within 20 days after the execution of the subcontract.
26    (c) In addition to any other requirements of this Code, a

 

 

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1subcontract subject to this Section must include all of the
2subcontractor's certifications required by Article 50 of the
3Code.
4    (c-5) The Capital Development Board and the Department of
5Transportation may each, by rule, implement a pilot program
6under which select construction contracts granted under this
7Code and all subcontracts pursuant to those contracts shall
8contain provisions that if a subcontractor has performed in
9accordance with the provisions of his or her subcontract and
10the work has been accepted by the appropriate State agency, the
11State agency shall pay the amount due the subcontractor
12directly to the subcontractor pursuant to the proper bill or
13invoice provided by the contractor to the State agency in
14accordance with the provisions of the State Prompt Payment Act.
15If a construction contract granted under this Code contains a
16provision that the State agency shall pay the subcontractor
17directly, the contractor shall deliver to the State agency a
18proper bill or invoice, as defined in the State Prompt Payment
19Act, for each subcontractor with whom the contractor has a
20subcontract.
21    (d) This Section applies to procurements solicited on or
22after the effective date of this amendatory Act of the 96th
23General Assembly.
24(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
25for the effective date of P.A. 96-795); 96-920, eff. 7-1-10.)
 

 

 

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1    Section 10. The State Prompt Payment Act is amended by
2changing Section 7 as follows:
 
3    (30 ILCS 540/7)   (from Ch. 127, par. 132.407)
4    Sec. 7. Payments to subcontractors and material suppliers.
5    (a) When a State official or agency responsible for
6administering a contract submits a voucher to the Comptroller
7for payment to a contractor, that State official or agency
8shall promptly make available electronically the voucher
9number, the date of the voucher, and the amount of the voucher.
10The State official or agency responsible for administering the
11contract shall provide subcontractors and material suppliers,
12known to the State official or agency, with instructions on how
13to access the electronic information. When a contractor
14receives any payment, the contractor shall pay each
15subcontractor and material supplier in proportion to the work
16completed by each subcontractor and material supplier their
17application, plus interest received under this Act, less any
18retention. If the contractor receives less than the full
19payment due under the public construction contract, the
20contractor shall be obligated to disburse on a pro rata basis
21those funds received, plus interest received under this Act,
22with the contractor, subcontractors and material suppliers
23each receiving a prorated portion based on the amount of
24payment. When, however, the public owner does not release the
25full payment due under the contract because there are specific

 

 

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1areas of work or materials the contractor is rejecting or
2because the contractor has otherwise determined such areas are
3not suitable for payment, then those specific subcontractors or
4suppliers involved shall not be paid for that portion of work
5rejected or deemed not suitable for payment and all other
6subcontractors and suppliers shall be paid in full, plus
7interest received under this Act.
8    (b) If the contractor, without reasonable cause, fails to
9make full payment of amounts due under subsection (a) to his
10subcontractors and material suppliers within 15 days after
11receipt of payment under the public construction contract, the
12contractor shall pay to his subcontractors and material
13suppliers, in addition to the payment due them, interest in the
14amount of 2% per month, calculated from the expiration of the
1515-day period until fully paid. This subsection shall also
16apply to any payments made by subcontractors and material
17suppliers to their subcontractors and material suppliers and to
18all payments made to lower tier subcontractors and material
19suppliers throughout the contracting chain.
20        (1) If a contractor, without reasonable cause, fails to
21    make payment in full as provided in subsection (a) within
22    15 days after receipt of payment under the public
23    construction contract, any subcontractor or material
24    supplier to whom payments are owed may file a written
25    notice with the State official or agency setting forth the
26    amount owed by the contractor and the contractor's failure

 

 

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1    to timely pay the amount owed.
2        (2) The State official or agency, within 15 days after
3    receipt of a subcontractor's or material supplier's
4    written notice of the failure to receive payment from the
5    contractor, shall hold a hearing convened by an
6    administrative law judge to determine whether the
7    contractor withheld payment, without reasonable cause,
8    from the subcontractors and material suppliers and what
9    amount, if any, is due to the subcontractors and material
10    suppliers. The State official or agency shall provide
11    appropriate notice to the parties of the date, time, and
12    location of the hearing. Each contractor, subcontractor,
13    and material supplier has the right to be represented by
14    counsel at the hearing and to cross-examine witnesses and
15    challenge documents.
16        (3) If there is a finding by the administrative law
17    judge that the contractor failed to make payment in full,
18    without reasonable cause, as provided in subsection (a),
19    then the administrative law judge shall, in writing, direct
20    the contractor to pay the amount owed to the subcontractors
21    and material suppliers plus interest within 15 days after
22    the finding.
23        (4) If a contractor fails to make full payment within
24    15 days after the administrative law judge's finding, then
25    the contractor shall be barred from entering into a State
26    public construction contract for a period of one year

 

 

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1    beginning on the date of the administrative law judge's
2    finding.
3    (c) The provisions of this Section do not apply to payments
4to a subcontractor for work performed under a subcontract
5entered into with a construction contractor if the contract
6contains a provision that the State agency shall pay the
7subcontractor directly as required under a pilot program
8implemented by the Capital Development Board or the Department
9of Transportation.
10(Source: P.A. 94-672, eff. 1-1-06; 94-972, eff. 7-1-07.)".