Full Text of HB3751 100th General Assembly
HB3751ham002 100TH GENERAL ASSEMBLY | Rep. Martin J. Moylan Filed: 4/25/2017
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| 1 | | AMENDMENT TO HOUSE BILL 3751
| 2 | | AMENDMENT NO. ______. Amend House Bill 3751, AS AMENDED, by | 3 | | replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 5. The Public Construction Bond Act is amended by | 6 | | changing Section 3 as follows:
| 7 | | (30 ILCS 550/3)
| 8 | | Sec. 3. Builder or developer cash bond or other surety.
| 9 | | (a) A county or municipality may not require an a cash | 10 | | bond, irrevocable
letter of credit, surety bond, or letter of | 11 | | commitment issued by a bank,
savings and loan association, | 12 | | surety, or insurance company from a builder or
developer to
| 13 | | guarantee completion of a project improvement when the builder | 14 | | or developer
has filed with the county or municipal clerk a
| 15 | | current, irrevocable letter of credit, surety bond, or letter | 16 | | of commitment
issued by a bank, savings and loan association, |
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| 1 | | surety, or insurance company,
deemed good and sufficient by the | 2 | | county or
municipality accepting such security, in an amount | 3 | | equal
to or greater than 110% of the amount of the bid on each | 4 | | project improvement.
A builder or developer has the option to | 5 | | utilize a
cash bond, irrevocable letter of credit,
surety bond, | 6 | | or letter of commitment, issued by a bank, savings and loan
| 7 | | association, surety, or insurance company, deemed good and
| 8 | | sufficient
by the county or municipality, to
satisfy any cash | 9 | | bond requirement established by a county or municipality.
| 10 | | Except for a municipality or county with a population of | 11 | | 1,000,000 or more,
the county or municipality must approve and | 12 | | deem a surety or
insurance company good and sufficient for the | 13 | | purposes set forth in this
Section if the surety or insurance | 14 | | company is authorized by the
Illinois Department of Insurance | 15 | | to sell and issue sureties in the State of
Illinois .
| 16 | | (b) If a county or municipality receives an a cash bond, | 17 | | irrevocable letter
of credit, or surety bond from a builder or
| 18 | | developer to
guarantee completion of a project improvement, the | 19 | | county or municipality shall
(i) register
the bond under
the | 20 | | address of the project and the construction permit number and | 21 | | (ii) give the
builder or developer a receipt for the bond. The | 22 | | county or municipality shall
establish and
maintain a separate | 23 | | account for all cash bonds received from builders and
| 24 | | developers to guarantee completion of a project improvement.
| 25 | | (c) The county or municipality shall refund a cash bond to | 26 | | a builder or
developer, or release the irrevocable letter of |
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| 1 | | credit or surety bond,
within
60 days after the builder or | 2 | | developer notifies the county or municipality in
writing of the
| 3 | | completion of the project improvement for which the bond
was | 4 | | required.
For these purposes, "completion" means that the | 5 | | county or municipality has
determined
that the project | 6 | | improvement for which the bond was required is complete or a
| 7 | | licensed engineer or licensed architect has certified to the | 8 | | builder or
developer and the county or municipality that the | 9 | | project improvement has been
completed to the
applicable codes | 10 | | and ordinances.
The county or municipality shall pay interest | 11 | | to the builder or developer,
beginning 60 days
after the | 12 | | builder or developer notifies the county or municipality in | 13 | | writing
of the completion
of the
project improvement, on any | 14 | | bond not refunded to a builder or developer, at
the rate of 1%
| 15 | | per month.
| 16 | | (d) (Blank). A home rule county or municipality may not | 17 | | require or maintain cash
bonds, irrevocable
letters of credit, | 18 | | surety bonds, or letters of commitment issued by a bank,
| 19 | | savings and loan association, surety, or insurance company
from | 20 | | builders
or developers in a manner inconsistent with this | 21 | | Section. This Section supersedes
and controls over other | 22 | | provisions of the Counties Code or
Illinois Municipal Code as | 23 | | they apply to and guarantee completion of a project
improvement | 24 | | that is required by the county or municipality, regardless of
| 25 | | whether the project improvement is a condition of annexation | 26 | | agreements.
This Section is a
denial and limitation under |
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| 1 | | subsection (i) of Section
6 of Article VII of the Illinois | 2 | | Constitution on the concurrent exercise by a
home rule
county | 3 | | or municipality of powers and functions exercised by the State.
| 4 | | (Source: P.A. 96-1000, eff. 7-2-10.)
| 5 | | Section 10. The Counties Code is amended by changing | 6 | | Section 5-1123 as follows:
| 7 | | (55 ILCS 5/5-1123)
| 8 | | Sec. 5-1123. Builder or developer cash bond or other | 9 | | surety.
| 10 | | (a) A county may not require an a cash bond, irrevocable | 11 | | letter of credit,
surety bond, or letter of commitment issued | 12 | | by a bank, savings and loan
association, surety, or insurance | 13 | | company from a builder or developer to
guarantee completion of | 14 | | a project improvement when the builder or developer
has filed | 15 | | with the county clerk a current, irrevocable letter of credit, | 16 | | surety
bond, or letter of commitment, issued by a bank, savings | 17 | | and loan association,
surety, or insurance company, deemed good | 18 | | and sufficient by the county
accepting such security, in an | 19 | | amount equal to or greater than 110% of the
amount of the bid | 20 | | on each project improvement. A builder or developer has
the | 21 | | option to utilize a cash bond, irrevocable letter of credit, | 22 | | surety
bond, or letter of
commitment issued by a bank, savings | 23 | | and loan association, surety, or insurance
company, deemed good | 24 | | and sufficient by the county, to satisfy any cash bond
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| 1 | | requirement established by a county. The county must approve
| 2 | | and deem a surety or insurance company good and sufficient for | 3 | | the purposes
set forth in this Section if the surety or | 4 | | insurance company is
authorized by the Illinois Department
of | 5 | | Insurance to sell and issue sureties in the State of Illinois .
| 6 | | (b) If a county receives an a cash bond, irrevocable letter | 7 | | of credit, or
surety bond from a builder or developer to
| 8 | | guarantee completion of a project improvement, the county shall | 9 | | (i) register
the bond under
the address of the project and the | 10 | | construction permit number and (ii) give the
builder or | 11 | | developer a receipt for the bond. The county shall establish | 12 | | and
maintain a separate account for all cash bonds received | 13 | | from builders and
developers to guarantee completion of a | 14 | | project improvement.
| 15 | | (c) The county shall refund a cash bond to a builder or | 16 | | developer, or
release the irrevocable letter of credit or | 17 | | surety bond, within
60 days after the builder or developer | 18 | | notifies the county in writing of the
completion of the project | 19 | | improvement for which the bond was required. For
these | 20 | | purposes, "completion" means that the county has determined
| 21 | | that the project improvement for which the bond was required is | 22 | | complete or a
licensed engineer or licensed architect has | 23 | | certified to the builder or
developer and the county that the | 24 | | project improvement has been completed to the
applicable codes | 25 | | and ordinances. The county shall pay interest to the builder
or | 26 | | developer, beginning 60 days after the builder or developer |
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| 1 | | notifies the
county in writing of the completion of the project | 2 | | improvement, on any bond not
refunded to a builder or | 3 | | developer, at the rate of 1% per month.
| 4 | | (d) (Blank). A home rule county may not require or maintain | 5 | | cash bonds, irrevocable
letters of credit, surety bonds, or | 6 | | other adequate securities from builders
or developers in a | 7 | | manner inconsistent with this Section. This Section
supersedes | 8 | | and controls over other provisions of this Code as
they apply | 9 | | to and guarantee completion of a project improvement that is
| 10 | | required by the county. This Section is a
denial and limitation | 11 | | under subsection (i) of Section 6 of Article VII of the
| 12 | | Illinois Constitution on the concurrent exercise by a home rule | 13 | | county of
powers and functions exercised by the State.
| 14 | | (Source: P.A. 96-1000, eff. 7-2-10.)
| 15 | | Section 15. The Illinois Municipal Code is amended by | 16 | | changing Section 11-39-3 as follows:
| 17 | | (65 ILCS 5/11-39-3)
| 18 | | Sec. 11-39-3. Builder or developer cash bond or other | 19 | | surety.
| 20 | | (a) A municipality may not require an a cash bond, | 21 | | irrevocable letter of
credit, surety bond, or letter of | 22 | | commitment issued by a bank, savings and loan
association, | 23 | | surety, or insurance company from a builder or developer
to | 24 | | guarantee completion of a project improvement when the builder |
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| 1 | | or developer
has filed with the municipal clerk a
current, | 2 | | irrevocable letter of credit, surety bond, or letter of | 3 | | commitment
issued by a bank, savings and loan association, | 4 | | surety, or insurance company,
deemed good and sufficient
by the | 5 | | municipality accepting such security, in an
amount
equal
to or | 6 | | greater than 110% of the amount of the bid on each project | 7 | | improvement.
A builder or developer has the option to utilize a
| 8 | | cash bond, irrevocable letter of credit,
surety bond, or letter | 9 | | of commitment, issued by a bank, savings and loan
association, | 10 | | surety, or insurance company, deemed good and
sufficient
by the | 11 | | municipality, to
satisfy any cash bond requirement established | 12 | | by a municipality.
Except for a municipality or county with a | 13 | | population of 1,000,000 or more,
the municipality must approve | 14 | | and deem a surety or insurance
company good and sufficient for | 15 | | the purposes set forth in this Section if the
surety or | 16 | | insurance company is authorized by the Illinois Department
of | 17 | | Insurance to sell and issue sureties in the State of Illinois .
| 18 | | (b) If a municipality receives an a cash bond, irrevocable | 19 | | letter of credit,
or surety bond from a builder or developer to
| 20 | | guarantee completion of a project improvement, the | 21 | | municipality shall (i)
register the bond
under
the address of | 22 | | the project and the construction permit number and (ii) give | 23 | | the
builder or developer a receipt for the bond. The | 24 | | municipality shall establish
and
maintain a separate account | 25 | | for all cash bonds received from builders and
developers to | 26 | | guarantee completion of a project improvement.
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| 1 | | (c) The municipality shall refund a cash bond to a builder | 2 | | or developer,
or release the irrevocable letter of credit or | 3 | | surety bond
within
60 days after the builder or developer | 4 | | notifies the municipality in writing of
the
completion of the | 5 | | project improvement for which the bond
was required.
For these | 6 | | purposes, "completion" means that the municipality has | 7 | | determined
that the project improvement for which the bond was | 8 | | required is complete or a
licensed engineer or licensed | 9 | | architect has certified to the builder or
developer and the | 10 | | municipality that the project improvement has been completed
to | 11 | | the applicable codes and ordinances.
The municipality shall pay | 12 | | interest to the builder or developer, beginning 60
days after | 13 | | builder or developer notifies the municipality in writing of | 14 | | the
completion of
the
project improvement, on any bond not | 15 | | refunded to a builder or developer, at
the rate of 1%
per | 16 | | month.
| 17 | | (d) (Blank). A home rule municipality may not require or | 18 | | maintain cash bonds,
irrevocable letters of credit, surety | 19 | | bonds, or letters of commitment issued by
a bank, savings and | 20 | | loan association, surety, or insurance company
from
builders or | 21 | | developers in a manner inconsistent with this Section. This
| 22 | | Section supersedes and controls over other provisions of this | 23 | | Code
as they apply to and guarantee completion of a project | 24 | | improvement that is
required by the municipality, regardless of | 25 | | whether the project improvement is
a condition of annexation | 26 | | agreements. This
Section is a denial and limitation under |
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| 1 | | subsection (i) of Section
6 of Article VII of the Illinois | 2 | | Constitution on the concurrent exercise by a
home rule | 3 | | municipality of powers and functions exercised by the State.
| 4 | | (Source: P.A. 96-1000, eff. 7-2-10.)".
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