House Sponsors: KOSEL-SAVIANO. Senate Sponsors: MOLARO-PARKER Short description: HWY CD-SUBCONTRACTORS-TRUST Synopsis of Bill as introduced: Amends the Illinois Highway Code. Provides that at the request of the subcontractor and with the approval of the Department of Transportation, the amount withheld from payment under the subcontract may be deposited under a trust agreement with an Illinois financial institution, whose deposits are insured by a federal agency. Provides that the subcontractor shall receive any interest on the amount deposited. Establishes provisions the trust agreement must include. Provides that the subcontractor is responsible for obtaining the written consent of the financial institution trustee and that any costs or service fees must be borne by the subcontractor. Provides that the provision applies to all subcontracts in effect on and after the effective date of the amendatory Act. Effective immediately. HOUSE AMENDMENT NO. 1. Deletes everything. Reinserts the original provisions of the bill, with changes and additions. Amends the Illinois Highway Code. Provides that the provision applies when the subcontractor's retainage, or the amount withheld from payment under a subcontract, is equal to or greater than $2,000. Provides that upon the contractor's receipt of the first partial or progress payment from the Department of Transportation, at the request of the subcontractor and with the approval of the contractor, the retainage shall be deposited under a trust agreement with a qualified financial institution chosen by the subcontractor and approved by the contractor. Provides that the trust agreement is between the subcontractor and the contractor. Provides that, at the discretion of the contractor and upon the request of the subcontractor, the trust agreement may become operative at the time of the first partial payment in accordance with existing statutes and Department of Transportation procedures. Effective immediately. HOUSE AMENDMENT NO. 2. Provides that the provision applies to subcontractors' retainage amounts expected to be equal to or greater than $20,000 (rather than to subcontractors' retainage amounts equal to or greater than $2,000). Provides that subcontractors' trust agreements are voluntary and supersede any prohibition regarding retainage that may be adopted by any transportation agency. Last action on Bill: PUBLIC ACT.............................. 92-0270 Last action date: AUG-07-2001 Location: House Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 2 SENATE - 0 END OF INQUIRY Full Text Bill Status