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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 HB4794
Introduced , by Rep. Timothy L. Schmitz SYNOPSIS AS INTRODUCED: |
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50 ILCS 505/3 |
from Ch. 85, par. 5603 |
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Amends the Local Government Prompt Payment Act. Provides that it is unlawful to withhold more than 5% retainage from payments earned by contractors and subcontractors for goods and services. Prohibits retainage if a payment bond has been furnished. Effective immediately.
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| FISCAL NOTE ACT MAY APPLY | |
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A BILL FOR
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HB4794 |
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LRB095 18063 HLH 44146 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 Local Government Prompt Payment Act is |
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| amended by changing Section 3 as follows:
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| (50 ILCS 505/3) (from Ch. 85, par. 5603)
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| Sec. 3. Approval of bills; retainage. |
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| (a) The appropriate local governmental official or agency
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| receiving goods or services must approve or disapprove a bill |
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| from a vendor
or contractor for goods or services furnished the |
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| local governmental agency
within 30 days after the receipt of |
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| such bill or within 30 days after the
date on which the goods |
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| or services were received, whichever is later.
If one or more |
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| items on a construction related bill or invoice are |
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| disapproved, but not the entire bill or invoice, then the |
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| portion that is not disapproved shall be paid. When safety or |
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| quality assurance testing of goods by the local governmental
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| agency is necessary before the approval or disapproval of a |
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| bill and such
testing cannot be completed within 30 days after |
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| receipt of the goods,
approval or disapproval of the bill must |
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| be made immediately upon
completion of the testing or within 60 |
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| days after receipt of the goods,
whichever occurs first. |
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| Written notice shall be mailed to the vendor or
contractor |