093_SB0155sam004











                                     LRB093 06706 MKM 14508 a

 1                    AMENDMENT TO SENATE BILL 155

 2        AMENDMENT NO.     .  Amend Senate Bill 155,  AS  AMENDED,
 3    by  replacing  everything  after the enacting clause with the
 4    following:

 5        "Section 5.  The State Prompt Payment Act is  amended  by
 6    changing Section 7 as follows:

 7        (30 ILCS 540/7) (from Ch. 127, par. 132.407)
 8        Sec.   7.  Payments   to   subcontractors   and  material
 9    suppliers.
10        (a)  When a State  official  or  agency  responsible  for
11    administering a contract submits a voucher to the Comptroller
12    for  payment  to  a contractor, that State official or agency
13    shall promptly  make  available  electronically  the  voucher
14    number,  the  date  of  the  voucher,  and  the amount of the
15    voucher.  The  State  official  or  agency  responsible   for
16    administering  the  contract shall provide subcontractors and
17    material suppliers, known to the State  official  or  agency,
18    with   instructions   on   how   to   access  the  electronic
19    information. When a  contractor  receives  any  payment,  the
20    contractor shall pay each subcontractor and material supplier
21    in proportion to the work completed by each subcontractor and
22    material  supplier  their application less any retention.  If
 
                            -2-      LRB093 06706 MKM 14508 a
 1    the contractor receives less than the full payment due  under
 2    the  public  construction  contract,  the contractor shall be
 3    obligated to  disburse  on  a  pro  rata  basis  those  funds
 4    received,  with  the  contractor, subcontractors and material
 5    suppliers each receiving a  prorated  portion  based  on  the
 6    amount  of payment.  When, however, the public owner does not
 7    release the full payment due under the contract because there
 8    are specific areas of work or  materials  the  contractor  is
 9    rejecting  or because the contractor has otherwise determined
10    such areas are not suitable for payment, then those  specific
11    subcontractors  or  suppliers  involved shall not be paid for
12    that portion of work rejected  or  deemed  not  suitable  for
13    payment  and  all other subcontractors and suppliers shall be
14    paid in full.
15        (b)  If the contractor, without reasonable  cause,  fails
16    to  make full any payment of amounts due under subsection (a)
17    to his subcontractors and material suppliers within  15  days
18    after  receipt  of  payment  under  the  public  construction
19    contract,  the contractor shall pay to his subcontractors and
20    material suppliers, in addition  to  the  payment  due  them,
21    interest  in  the  amount of 4% 2% per month, calculated from
22    the expiration of the 15-day period until fully  paid.   This
23    subsection   shall   also  apply  to  any  payments  made  by
24    subcontractors and material suppliers to their subcontractors
25    and material suppliers and to all payments made to lower tier
26    subcontractors  and   material   suppliers   throughout   the
27    contracting  chain. If a State official or agency responsible
28    for administering  a contract  determines,  after  notice  to
29    appropriate  parties  and  a  hearing,  that a contractor has
30    failed to make payment in full as provided in this subsection
31    within 45 days after receipt  of  payment  under  the  public
32    construction  contract,  then  that contractor is barred from
33    entering into a State  public  construction  contract  for  a
34    period  of  one year beginning on that 45th day.  The hearing
 
                            -3-      LRB093 06706 MKM 14508 a
 1    must be held within 30 days after the official or  agency  is
 2    notified  that  there  is  reason  to believe a violation has
 3    occurred.
 4    (Source: P.A. 87-773.)".