Full Text of SB0013 94th General Assembly
SB0013enr 94TH GENERAL ASSEMBLY
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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 |
| for
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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| 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
2% per month, calculated from the
expiration of the | 9 |
| 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 convened by an | 26 |
| administrative law judge to determine whether the | 27 |
| contractor withheld payment,
without
reasonable cause, | 28 |
| from the subcontractors and material suppliers and what
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| amount, if any,
is due to the subcontractors and material | 30 |
| suppliers. The State official or
agency shall
provide | 31 |
| appropriate notice to the parties of the date, time, and | 32 |
| location of
the hearing. Each contractor, subcontractor, | 33 |
| and material supplier has the right to be represented by | 34 |
| counsel at the hearing and to cross-examine witnesses and | 35 |
| challenge documents.
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| (3) If there is a finding by the administrative law |
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| judge that the contractor failed
to make
payment in full, | 2 |
| without reasonable cause, as provided in subsection (a), | 3 |
| then
the administrative law judge shall, in writing, direct | 4 |
| the contractor to pay the amount
owed to the
subcontractors | 5 |
| and material suppliers plus interest within 15 days after | 6 |
| the
finding.
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| (4) If a contractor fails to make full payment within | 8 |
| 15 days after the
administrative law judge's finding, then | 9 |
| the contractor shall be barred from
entering into a State
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| public construction contract for a period of one year | 11 |
| beginning on the date of
the administrative law judge's | 12 |
| finding.
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| (Source: P.A. 87-773.)
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