Full Text of SB0013 94th General Assembly
SB0013 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 SB0013
Introduced 1/26/2005, by Sen. Jacqueline Y. Collins SYNOPSIS AS INTRODUCED: |
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30 ILCS 540/7 |
from Ch. 127, par. 132.407 |
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Amends the State Prompt Payment Act. Requires a State official or agency responsible for administering a contract, when submitting a voucher to the Comptroller for payment to a contractor, to promptly make available electronically the voucher number, the fate of the voucher, and the amount of the voucher. Provides that the State official or agency responsible for administering the contract shall provide subcontractors and material suppliers, known to the State official or agency, with instructions on how to access the electronic information. Provides that if a contractor, without reasonable cause, fails to make a full (now, any) payment of certain amounts due to his subcontractors and material supplier within 15 days after receipt of payment under a public construction contract, the contractor must pay the subcontractors and material suppliers 4% (now, 2%) interest each months in addition to the payments due until the amount is fully paid. Provides procedures for subcontractors and material suppliers to follow. Provides that if a State official or agency responsible for administering a contract determines, after notice to appropriate parties and a hearing, that a contractor has failed to make a payment in full within 45 days under a public construction contract, then that contractor must make payment within 15 days after the finding; if not, the contractor is barred from entering into a State public construction contract for one year.
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A BILL FOR
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SB0013 |
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LRB094 06980 JAM 37098 b |
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| AN ACT concerning finance.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The State Prompt Payment Act is amended by | 5 |
| changing
Section 7 as follows:
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| (30 ILCS 540/7)
(from Ch. 127, par. 132.407)
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| Sec. 7. Payments to subcontractors and material suppliers.
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| (a) When a State official or agency responsible for | 9 |
| administering a
contract submits a voucher to the Comptroller | 10 |
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payment to a contractor, that State official or agency | 11 |
| shall promptly make
available electronically
the voucher | 12 |
| number, the date of the voucher, and
the amount of the voucher.
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| The State official or agency responsible for administering the | 14 |
| contract shall
provide subcontractors and material suppliers, | 15 |
| known to the State official or
agency, with instructions on how | 16 |
| to access the electronic information. When a
contractor | 17 |
| receives any payment, the contractor shall
pay each | 18 |
| subcontractor and material supplier in proportion to the work
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| completed by each subcontractor and material supplier their | 20 |
| application
less any retention. If the contractor receives less | 21 |
| than the full payment
due under the public construction | 22 |
| contract, the contractor shall be
obligated to disburse on a | 23 |
| pro rata basis those funds received, with the
contractor, | 24 |
| subcontractors and material suppliers each receiving a | 25 |
| prorated
portion based on the amount of payment. When, however, | 26 |
| the public owner
does not release the full payment due under | 27 |
| the contract because there are
specific areas of work or | 28 |
| materials the contractor is rejecting or because
the contractor | 29 |
| has otherwise determined such areas are not suitable for
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| payment, then those specific subcontractors or suppliers | 31 |
| involved shall not
be paid for that portion of work rejected or | 32 |
| deemed not suitable for
payment and all other subcontractors |
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SB0013 |
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LRB094 06980 JAM 37098 b |
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| and suppliers shall be paid in full.
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| (b) If the contractor, without reasonable cause, fails to | 3 |
| make full
any payment of amounts due under subsection (a) to
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| his subcontractors and material suppliers within 15 days after
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| receipt of
payment under the public construction contract, the | 6 |
| contractor shall pay to
his subcontractors and material | 7 |
| suppliers, in addition to the payment due
them, interest in the | 8 |
| amount of 4%
2% per month, calculated from the
expiration of | 9 |
| the 15-day period until fully paid. This subsection shall
also | 10 |
| apply to any payments made by subcontractors and material | 11 |
| suppliers to
their subcontractors and material suppliers and to | 12 |
| all payments made to
lower tier subcontractors and material | 13 |
| suppliers throughout the contracting
chain.
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| (1) If a contractor, without reasonable cause, fails to | 15 |
| make payment in
full as
provided in subsection (a) within | 16 |
| 15 days after receipt of payment under the
public
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| construction contract, any subcontractor or material | 18 |
| supplier to whom payments
are owed
may file a written | 19 |
| notice with the State official or agency setting forth the
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| amount owed by
the contractor and the contractor's failure | 21 |
| to timely pay the amount owed.
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| (2) The State official or agency, within 15 days after | 23 |
| receipt of a
subcontractor's
or material supplier's | 24 |
| written notice of the failure to receive payment from
the | 25 |
| contractor,
shall hold a hearing to determine whether the | 26 |
| contractor withheld payment,
without
reasonable cause, | 27 |
| from the subcontractors and material suppliers and what
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| amount, if any,
is due to the subcontractors and material | 29 |
| suppliers. The State official or
agency shall
provide | 30 |
| appropriate notice to the parties of the date, time, and | 31 |
| location of
the hearing.
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| (3) If the State official or agency determines that the | 33 |
| contractor failed
to make
payment in full, without | 34 |
| reasonable cause, as provided in subsection (a), then
the | 35 |
| State
official or agency shall, in writing, direct the | 36 |
| contractor to pay the amount
owed to the
subcontractors and |
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LRB094 06980 JAM 37098 b |
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| material suppliers plus interest within 15 days after the
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| State official's
or agency's finding.
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| (4) If a contractor fails to make full payment within | 4 |
| 15 days after the
State
official's or agency's finding, | 5 |
| then the contractor shall be barred from
entering into a | 6 |
| State
public construction contract for a period of one year | 7 |
| beginning on the date of
the State
official's or agency's | 8 |
| finding.
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| (Source: P.A. 87-773.)
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