Full Text of SB0133 97th General Assembly
SB0133sam003 97TH GENERAL ASSEMBLY | Sen. Martin A. Sandoval Filed: 3/25/2011
| | 09700SB0133sam003 | | LRB097 06276 PJG 53404 a |
|
| 1 | | AMENDMENT TO SENATE BILL 133
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 133 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Procurement Code is amended by | 5 | | changing 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 | 9 | | whether the services of a subcontractor will or may be used. | 10 | | The contract shall include the names and addresses of all known | 11 | | subcontractors with subcontracts with an annual value of more | 12 | | than $25,000 and the expected amount of money each will receive | 13 | | under the contract. For procurements subject to the authority | 14 | | of the chief procurement officer appointed pursuant to | 15 | | subsection (a)(2) of Section 10-20, the contract shall include | 16 | | only the names and addresses of all known subcontractors of the |
| | | 09700SB0133sam003 | - 2 - | LRB097 06276 PJG 53404 a |
|
| 1 | | primary contractor with subcontracts with an annual value of | 2 | | more than $25,000. The contractor shall provide the chief | 3 | | procurement officer or State purchasing officer a copy of any | 4 | | subcontract with an annual value of more than $25,000 so | 5 | | identified within 20 days after the execution of the State | 6 | | contract or after execution of the subcontract, whichever is | 7 | | later. A subcontractor, or contractor on behalf of a | 8 | | subcontractor, may identify information that is deemed | 9 | | proprietary or confidential. If the chief procurement officer | 10 | | determines the information is not relevant to the primary | 11 | | contract, the chief procurement officer may excuse the | 12 | | inclusion of the information. If the chief procurement officer | 13 | | determines the information is proprietary or could harm the | 14 | | business interest of the subcontractor, the chief procurement | 15 | | officer may, in his or her discretion, redact the information. | 16 | | Redacted information shall not become part of the public | 17 | | record. | 18 | | (b) If at any time during the term of a contract, a | 19 | | contractor adds or changes any subcontractors, he or she shall | 20 | | promptly notify, in writing, the chief procurement officer, | 21 | | State purchasing officer, or their designee of the names and | 22 | | addresses and the expected amount of money each new or replaced | 23 | | subcontractor will receive. The contractor shall provide to the | 24 | | responsible chief procurement officer a copy of the subcontract | 25 | | within 20 days after the execution of the subcontract. | 26 | | (c) In addition to any other requirements of this Code, a |
| | | 09700SB0133sam003 | - 3 - | LRB097 06276 PJG 53404 a |
|
| 1 | | subcontract subject to this Section must include all of the | 2 | | subcontractor's certifications required by Article 50 of the | 3 | | Code. | 4 | | (c-5) The Capital Development Board and the Department of | 5 | | Transportation shall each, by rule, implement a pilot program | 6 | | under which select construction contracts granted under this | 7 | | Code and all subcontracts pursuant to those contracts shall | 8 | | contain provisions that if a subcontractor has performed in | 9 | | accordance with the provisions of his or her subcontract and | 10 | | the work has been accepted by the appropriate State agency, the | 11 | | State agency shall pay the amount due the subcontractor | 12 | | directly to the subcontractor pursuant to the proper bill or | 13 | | invoice provided by the contractor to the State agency in | 14 | | accordance with the provisions of the State Prompt Payment Act. | 15 | | If a construction contract granted under this Code contains a | 16 | | provision that the State agency shall pay the subcontractor | 17 | | directly, the contractor shall deliver to the State agency a | 18 | | proper bill or invoice, as defined in the State Prompt Payment | 19 | | Act, for each subcontractor with whom the contractor has a | 20 | | subcontract. The program shall be implemented by January 1, | 21 | | 2012. | 22 | | (d) This Section applies to procurements solicited on or | 23 | | after the effective date of this amendatory Act of the 96th | 24 | | General Assembly.
| 25 | | (Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793 | 26 | | for the effective date of P.A. 96-795); 96-920, eff. 7-1-10.) |
| | | 09700SB0133sam003 | - 4 - | LRB097 06276 PJG 53404 a |
|
| 1 | | Section 10. The State Prompt Payment Act is amended by | 2 | | changing 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 | 6 | | administering a
contract submits a voucher to the Comptroller | 7 | | for
payment to a contractor, that State official or agency | 8 | | shall promptly make
available electronically
the voucher | 9 | | number, the date of the voucher, and
the amount of the voucher.
| 10 | | The State official or agency responsible for administering the | 11 | | contract shall
provide subcontractors and material suppliers, | 12 | | known to the State official or
agency, with instructions on how | 13 | | to access the electronic information. When a
contractor | 14 | | receives any payment, the contractor shall
pay each | 15 | | subcontractor and material supplier in proportion to the work
| 16 | | completed by each subcontractor and material supplier their | 17 | | application, plus interest received under this Act,
less any | 18 | | retention. If the contractor receives less than the full | 19 | | payment
due under the public construction contract, the | 20 | | contractor shall be
obligated to disburse on a pro rata basis | 21 | | those funds received, plus interest received under this Act, | 22 | | with the
contractor, subcontractors and material suppliers | 23 | | each receiving a prorated
portion based on the amount of | 24 | | payment. When, however, the public owner
does not release the |
| | | 09700SB0133sam003 | - 5 - | LRB097 06276 PJG 53404 a |
|
| 1 | | full payment due under the contract because there are
specific | 2 | | areas of work or materials the contractor is rejecting or | 3 | | because
the contractor has otherwise determined such areas are | 4 | | not suitable for
payment, then those specific subcontractors or | 5 | | suppliers involved shall not
be paid for that portion of work | 6 | | rejected or deemed not suitable for
payment and all other | 7 | | subcontractors and suppliers shall be paid in full, plus | 8 | | interest received under this Act.
| 9 | | (b) If the contractor, without reasonable cause, fails to | 10 | | make full payment of amounts due under subsection (a) to
his | 11 | | subcontractors and material suppliers within 15 days after
| 12 | | receipt of
payment under the public construction contract, the | 13 | | contractor shall pay to
his subcontractors and material | 14 | | suppliers, in addition to the payment due
them, interest in the | 15 | | amount of
2% per month, calculated from the
expiration of the | 16 | | 15-day period until fully paid. This subsection shall
also | 17 | | apply to any payments made by subcontractors and material | 18 | | suppliers to
their subcontractors and material suppliers and to | 19 | | all payments made to
lower tier subcontractors and material | 20 | | suppliers throughout the contracting
chain.
| 21 | | (1) If a contractor, without reasonable cause, fails to | 22 | | make payment in
full as
provided in subsection (a) within | 23 | | 15 days after receipt of payment under the
public
| 24 | | construction contract, any subcontractor or material | 25 | | supplier to whom payments
are owed
may file a written | 26 | | notice with the State official or agency setting forth the
|
| | | 09700SB0133sam003 | - 6 - | LRB097 06276 PJG 53404 a |
|
| 1 | | amount owed by
the contractor and the contractor's failure | 2 | | to timely pay the amount owed.
| 3 | | (2) The State official or agency, within 15 days after | 4 | | receipt of a
subcontractor's
or material supplier's | 5 | | written notice of the failure to receive payment from
the | 6 | | contractor,
shall hold a hearing convened by an | 7 | | administrative law judge to determine whether the | 8 | | contractor withheld payment,
without
reasonable cause, | 9 | | from the subcontractors and material suppliers and what
| 10 | | amount, if any,
is due to the subcontractors and material | 11 | | suppliers. The State official or
agency shall
provide | 12 | | appropriate notice to the parties of the date, time, and | 13 | | location of
the hearing. Each contractor, subcontractor, | 14 | | and material supplier has the right to be represented by | 15 | | counsel at the hearing and to cross-examine witnesses and | 16 | | challenge documents.
| 17 | | (3) If there is a finding by the administrative law | 18 | | judge that the contractor failed
to make
payment in full, | 19 | | without reasonable cause, as provided in subsection (a), | 20 | | then
the administrative law judge shall, in writing, direct | 21 | | the contractor to pay the amount
owed to the
subcontractors | 22 | | and material suppliers plus interest within 15 days after | 23 | | the
finding.
| 24 | | (4) If a contractor fails to make full payment within | 25 | | 15 days after the
administrative law judge's finding, then | 26 | | the contractor shall be barred from
entering into a State
|
| | | 09700SB0133sam003 | - 7 - | LRB097 06276 PJG 53404 a |
|
| 1 | | public construction contract for a period of one year | 2 | | beginning on the date of
the administrative law judge's | 3 | | finding. | 4 | | (c) The provisions of this Section do not apply to payments | 5 | | to a subcontractor for work performed under a subcontract | 6 | | entered into with a construction contractor if the contract | 7 | | contains a provision that the State agency shall pay the | 8 | | subcontractor directly as required under a pilot program | 9 | | implemented by the Capital Development Board or the Department | 10 | | of Transportation.
| 11 | | (Source: P.A. 94-672, eff. 1-1-06; 94-972, eff. 7-1-07 .)".
|
|