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Sen. Kwame Raoul
Filed: 3/26/2007
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LRB095 04366 JAM 34555 a |
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| AMENDMENT TO SENATE BILL 1511
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| AMENDMENT NO. ______. Amend Senate Bill 1511, AS AMENDED, |
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| by replacing everything after the enacting clause with the |
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| following:
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| "Section 5. The Public Construction Bond Act is amended by |
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| changing Section 1 as follows:
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| (30 ILCS 550/1) (from Ch. 29, par. 15)
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| Sec. 1. Except as otherwise provided by this Act, all |
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| officials, boards,
commissions or agents of this State, or of
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| any political subdivision thereof in making contracts for |
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| public work of
any kind costing over $5,000 to be performed for |
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| the State, or a political
subdivision thereof
shall require |
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| every contractor for the work to furnish, supply and deliver
a |
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| bond to the State, or to the political subdivision thereof |
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| entering into
the contract, as the case may be, with good and |
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| sufficient sureties. The
amount of the bond shall be fixed by |
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LRB095 04366 JAM 34555 a |
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| the officials, boards, commissions,
commissioners or agents, |
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| and the bond, among other conditions,
shall be
conditioned for |
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| the completion of the contract, for the payment of material
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| used in the work and for all labor performed in the work, |
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| whether by
subcontractor or otherwise.
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| If the contract is for emergency repairs as provided in the |
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| Illinois
Procurement
Code, proof of payment for all labor, |
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| materials, apparatus, fixtures, and
machinery may be
furnished |
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| in lieu of the bond required by this Section.
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| Each such bond is deemed to contain the following |
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| provisions whether
such provisions are inserted in such bond or |
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| not:
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| "The principal and sureties on this bond agree that all the
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| undertakings, covenants, terms, conditions and agreements of |
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| the contract
or contracts entered into between the principal |
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| and the State or any
political subdivision thereof will be |
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| performed and fulfilled and to pay
all persons, firms and |
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| corporations having contracts with the principal or
with |
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| subcontractors, all just claims due them under the provisions |
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| of such
contracts for labor performed or materials furnished in |
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| the performance of
the contract on account of which this bond |
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| is given, when such claims are
not satisfied out of the |
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| contract price of the contract on account of which
this bond is |
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| given, after final settlement between the officer, board,
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| commission or agent of the State or of any political |
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| subdivision thereof
and the principal has been made."
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LRB095 04366 JAM 34555 a |
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| The surety bond required by this Section may be acquired |
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| from the
company, agent or broker of the contractor's choice. |
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| The bond and sureties
shall
be subject to the right of |
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| reasonable approval or disapproval, including
suspension, by |
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| the State or political subdivision thereof concerned. In the
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| case of State construction contracts, a contractor shall not be |
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| required to
post a cash bond or letter of credit in addition to |
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| or as a substitute for the
surety bond required by this |
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| Section.
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| When other than motor fuel tax funds, federal-aid funds, or |
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| other
funds received from the State are used, a political |
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| subdivision may allow
the contractor to provide a |
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| non-diminishing irrevocable bank letter of
credit, in lieu of |
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| the bond required by this Section, on contracts under
$100,000 |
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| to comply with the requirements of this Section. Any such bank
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| letter of credit shall contain all provisions required for |
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| bonds by this
Section.
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| Notwithstanding this or any other law, in order to promote |
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| business competition and the stability and growth of small |
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| businesses, the Capital Development Board may accept a surety |
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| bond guaranteed by the federal Small Business Administration or |
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| a second party bond for a public construction contract if the |
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| contractor is a small business. As used in this Section, |
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| "second party bond" means a bond that designates as principal, |
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| guarantor, or both, a person or persons in addition to the |
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| person to whom the contract is proposed for award. The Capital |