Full Text of SB1511 95th General Assembly
SB1511 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 SB1511
Introduced 2/9/2007, by Sen. Kwame Raoul SYNOPSIS AS INTRODUCED: |
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30 ILCS 550/1 |
from Ch. 29, par. 15 |
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Amends the Public Construction Bond Act. Authorizes the Capital Development Board to waive the requirement of a surety bond for a public construction contract if (i) the contractor is a small business enterprise and (ii) the otherwise required bond amount plus other surety bond amounts waived by the Board from small business enterprises, with respect to projects that are not yet complete, does not exceed $2,000,000. Defines a small business enterprise. Authorizes the Board to adopt implementing rules. Effective July 1, 2007.
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A BILL FOR
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SB1511 |
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LRB095 04366 JAM 24409 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 Public Construction Bond Act is amended by | 5 |
| changing Section 1 as follows:
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| (30 ILCS 550/1) (from Ch. 29, par. 15)
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| Sec. 1. Except as otherwise provided by this Act, all | 8 |
| officials, boards,
commissions or agents of this State, or of
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| any political subdivision thereof in making contracts for | 10 |
| public work of
any kind costing over $5,000 to be performed for | 11 |
| the State, or a political
subdivision thereof
shall require | 12 |
| every contractor for the work to furnish, supply and deliver
a | 13 |
| bond to the State, or to the political subdivision thereof | 14 |
| entering into
the contract, as the case may be, with good and | 15 |
| sufficient sureties. The
amount of the bond shall be fixed by | 16 |
| the officials, boards, commissions,
commissioners or agents, | 17 |
| and the bond, among other conditions,
shall be
conditioned for | 18 |
| the completion of the contract, for the payment of material
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| used in the work and for all labor performed in the work, | 20 |
| whether by
subcontractor or otherwise.
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| If the contract is for emergency repairs as provided in the | 22 |
| Illinois
Procurement
Code, proof of payment for all labor, | 23 |
| materials, apparatus, fixtures, and
machinery may be
furnished |
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SB1511 |
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LRB095 04366 JAM 24409 b |
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| in lieu of the bond required by this Section.
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| Each such bond is deemed to contain the following | 3 |
| provisions whether
such provisions are inserted in such bond or | 4 |
| not:
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| "The principal and sureties on this bond agree that all the
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| undertakings, covenants, terms, conditions and agreements of | 7 |
| the contract
or contracts entered into between the principal | 8 |
| and the State or any
political subdivision thereof will be | 9 |
| performed and fulfilled and to pay
all persons, firms and | 10 |
| corporations having contracts with the principal or
with | 11 |
| subcontractors, all just claims due them under the provisions | 12 |
| of such
contracts for labor performed or materials furnished in | 13 |
| the performance of
the contract on account of which this bond | 14 |
| is given, when such claims are
not satisfied out of the | 15 |
| contract price of the contract on account of which
this bond is | 16 |
| given, after final settlement between the officer, board,
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| commission or agent of the State or of any political | 18 |
| subdivision thereof
and the principal has been made."
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| The surety bond required by this Section may be acquired | 20 |
| from the
company, agent or broker of the contractor's choice. | 21 |
| The bond and sureties
shall
be subject to the right of | 22 |
| reasonable approval or disapproval, including
suspension, by | 23 |
| the State or political subdivision thereof concerned. In the
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| case of State construction contracts, a contractor shall not be | 25 |
| required to
post a cash bond or letter of credit in addition to | 26 |
| or as a substitute for the
surety bond required by this |
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LRB095 04366 JAM 24409 b |
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| Section.
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| When other than motor fuel tax funds, federal-aid funds, or | 3 |
| other
funds received from the State are used, a political | 4 |
| subdivision may allow
the contractor to provide a | 5 |
| non-diminishing irrevocable bank letter of
credit, in lieu of | 6 |
| the bond required by this Section, on contracts under
$100,000 | 7 |
| to comply with the requirements of this Section. Any such bank
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| letter of credit shall contain all provisions required for | 9 |
| bonds by this
Section.
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| Notwithstanding this or any other law, in order to promote | 11 |
| business competition and the stability and growth of small | 12 |
| businesses, the Capital Development Board may waive a surety | 13 |
| bond under this or any other Act for a public construction | 14 |
| contract if (i) the contractor is a small business enterprise | 15 |
| and (ii) the amount of the surety bond that would otherwise be | 16 |
| required, when combined with the total amount of surety bonds | 17 |
| waived by the Capital Development Board from that and all other | 18 |
| small business enterprises with respect to projects that are | 19 |
| not yet completed, does not exceed $2,000,000. The Capital | 20 |
| Development Board may adopt rules to implement this Section. As | 21 |
| used in this Section, a "small business enterprise" means a | 22 |
| construction business whose annual sales and receipts do not | 23 |
| exceed $10,000,000 and that is otherwise a small business as | 24 |
| defined by rule of the Department of Central Management | 25 |
| Services under subsection (b) of Section 45-45 of the Illinois | 26 |
| Procurement Code.
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LRB095 04366 JAM 24409 b |
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| (Source: P.A. 93-221, eff. 1-1-04.)
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| Section 99. Effective date. This Act takes effect July 1, | 3 |
| 2007.
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