093_SB0155sam004
LRB093 06706 MKM 14508 a
1 AMENDMENT TO SENATE BILL 155
2 AMENDMENT NO. . Amend Senate Bill 155, AS AMENDED,
3 by replacing everything after the enacting clause with the
4 following:
5 "Section 5. The State Prompt Payment Act is amended by
6 changing Section 7 as follows:
7 (30 ILCS 540/7) (from Ch. 127, par. 132.407)
8 Sec. 7. Payments to subcontractors and material
9 suppliers.
10 (a) When a State official or agency responsible for
11 administering a contract submits a voucher to the Comptroller
12 for payment to a contractor, that State official or agency
13 shall promptly make available electronically the voucher
14 number, the date of the voucher, and the amount of the
15 voucher. The State official or agency responsible for
16 administering the contract shall provide subcontractors and
17 material suppliers, known to the State official or agency,
18 with instructions on how to access the electronic
19 information. When a contractor receives any payment, the
20 contractor shall pay each subcontractor and material supplier
21 in proportion to the work completed by each subcontractor and
22 material supplier their application less any retention. If
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1 the contractor receives less than the full payment due under
2 the public construction contract, the contractor shall be
3 obligated to disburse on a pro rata basis those funds
4 received, with the contractor, subcontractors and material
5 suppliers each receiving a prorated portion based on the
6 amount of payment. When, however, the public owner does not
7 release the full payment due under the contract because there
8 are specific areas of work or materials the contractor is
9 rejecting or because the contractor has otherwise determined
10 such areas are not suitable for payment, then those specific
11 subcontractors or suppliers involved shall not be paid for
12 that portion of work rejected or deemed not suitable for
13 payment and all other subcontractors and suppliers shall be
14 paid in full.
15 (b) If the contractor, without reasonable cause, fails
16 to make full any payment of amounts due under subsection (a)
17 to his subcontractors and material suppliers within 15 days
18 after receipt of payment under the public construction
19 contract, the contractor shall pay to his subcontractors and
20 material suppliers, in addition to the payment due them,
21 interest in the amount of 4% 2% per month, calculated from
22 the expiration of the 15-day period until fully paid. This
23 subsection shall also apply to any payments made by
24 subcontractors and material suppliers to their subcontractors
25 and material suppliers and to all payments made to lower tier
26 subcontractors and material suppliers throughout the
27 contracting chain. If a State official or agency responsible
28 for administering a contract determines, after notice to
29 appropriate parties and a hearing, that a contractor has
30 failed to make payment in full as provided in this subsection
31 within 45 days after receipt of payment under the public
32 construction contract, then that contractor is barred from
33 entering into a State public construction contract for a
34 period of one year beginning on that 45th day. The hearing
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1 must be held within 30 days after the official or agency is
2 notified that there is reason to believe a violation has
3 occurred.
4 (Source: P.A. 87-773.)".