|
|
|||||||
| |||||||
| |||||||
| 1 | AN ACT concerning finance.
| ||||||
| 2 | Be it enacted by the People of the State of Illinois,
| ||||||
| 3 | represented in the General Assembly:
| ||||||
| 4 | Section 5. The Public Construction Bond Act is amended by | ||||||
| 5 | changing Section 1 as follows:
| ||||||
| 6 | (30 ILCS 550/1) (from Ch. 29, par. 15)
| ||||||
| 7 | Sec. 1. Except as otherwise provided by this Act, all | ||||||
| 8 | officials, boards,
commissions or agents of this State, or of
| ||||||
| 9 | any political subdivision thereof in making contracts for | ||||||
| 10 | public work of
any kind costing over $5,000 to be performed for | ||||||
| 11 | the State, or a political
subdivision thereof
shall require | ||||||
| 12 | every contractor for the work to furnish, supply and deliver
a | ||||||
| 13 | bond to the State, or to the political subdivision thereof | ||||||
| 14 | entering into
the contract, as the case may be, with good and | ||||||
| 15 | sufficient sureties. The
amount of the bond shall be fixed by | ||||||
| 16 | the officials, boards, commissions,
commissioners or agents, | ||||||
| 17 | and the bond, among other conditions,
shall be
conditioned for | ||||||
| 18 | the completion of the contract, for the payment of material
| ||||||
| 19 | used in the work and for all labor performed in the work, | ||||||
| 20 | whether by
subcontractor or otherwise.
| ||||||
| 21 | If the contract is for emergency repairs as provided in the | ||||||
| 22 | Illinois
Procurement
Code, proof of payment for all labor, | ||||||
| 23 | materials, apparatus, fixtures, and
machinery may be
furnished | ||||||
| |||||||
| |||||||
| 1 | in lieu of the bond required by this Section.
| ||||||
| 2 | Each such bond is deemed to contain the following | ||||||
| 3 | provisions whether
such provisions are inserted in such bond or | ||||||
| 4 | not:
| ||||||
| 5 | "The principal and sureties on this bond agree that all the
| ||||||
| 6 | undertakings, covenants, terms, conditions and agreements of | ||||||
| 7 | the contract
or contracts entered into between the principal | ||||||
| 8 | and the State or any
political subdivision thereof will be | ||||||
| 9 | performed and fulfilled and to pay
all persons, firms and | ||||||
| 10 | corporations having contracts with the principal or
with | ||||||
| 11 | subcontractors, all just claims due them under the provisions | ||||||
| 12 | of such
contracts for labor performed or materials furnished in | ||||||
| 13 | the performance of
the contract on account of which this bond | ||||||
| 14 | is given, when such claims are
not satisfied out of the | ||||||
| 15 | contract price of the contract on account of which
this bond is | ||||||
| 16 | given, after final settlement between the officer, board,
| ||||||
| 17 | commission or agent of the State or of any political | ||||||
| 18 | subdivision thereof
and the principal has been made."
| ||||||
| 19 | The surety bond required by this Section may be acquired | ||||||
| 20 | from the
company, agent or broker of the contractor's choice. | ||||||
| 21 | The bond and sureties
shall
be subject to the right of | ||||||
| 22 | reasonable approval or disapproval, including
suspension, by | ||||||
| 23 | the State or political subdivision thereof concerned. In the
| ||||||
| 24 | case of State construction contracts, a contractor shall not be | ||||||
| 25 | required to
post a cash bond or letter of credit in addition to | ||||||
| 26 | or as a substitute for the
surety bond required by this | ||||||
| |||||||
| |||||||
| 1 | Section.
| ||||||
| 2 | When other than motor fuel tax funds, federal-aid funds, or | ||||||
| 3 | other
funds received from the State are used, a political | ||||||
| 4 | subdivision may allow
the contractor to provide a | ||||||
| 5 | non-diminishing irrevocable bank letter of
credit, in lieu of | ||||||
| 6 | the bond required by this Section, on contracts under
$100,000 | ||||||
| 7 | to comply with the requirements of this Section. Any such bank
| ||||||
| 8 | letter of credit shall contain all provisions required for | ||||||
| 9 | bonds by this
Section.
| ||||||
| 10 | Notwithstanding this or any other law, in order to promote | ||||||
| 11 | business competition and the stability and growth of small | ||||||
| 12 | businesses, the Capital Development Board may accept a surety | ||||||
| 13 | bond guaranteed by the federal Small Business Administration or | ||||||
| 14 | a second party bond for a public construction contract if the | ||||||
| 15 | contractor is a small business. As used in this Section, | ||||||
| 16 | "second party bond" means a bond that designates as principal, | ||||||
| 17 | guarantor, or both, a person or persons in addition to the | ||||||
| 18 | person to whom the contract is proposed for award. The Capital | ||||||
| 19 | Development Board may adopt rules to implement this Section. | ||||||
| 20 | For purposes of this Section, a small business is a | ||||||
| 21 | construction business with annual sales and receipts of no more | ||||||
| 22 | than $27,000,000. | ||||||
| 23 | (Source: P.A. 93-221, eff. 1-1-04.)
| ||||||
| 24 | Section 99. Effective date. This Act takes effect July 1, | ||||||
| 25 | 2007.
| ||||||