Full Text of SB1511 95th General Assembly
SB1511sam004 95TH GENERAL ASSEMBLY
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Sen. Kwame Raoul
Filed: 3/26/2007
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| AMENDMENT TO SENATE BILL 1511
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| AMENDMENT NO. ______. Amend Senate Bill 1511, AS AMENDED, | 3 |
| by replacing everything after the enacting clause with the | 4 |
| following:
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| "Section 5. The Public Construction Bond Act is amended by | 6 |
| 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 | 9 |
| officials, boards,
commissions or agents of this State, or of
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| any political subdivision thereof in making contracts for | 11 |
| public work of
any kind costing over $5,000 to be performed for | 12 |
| the State, or a political
subdivision thereof
shall require | 13 |
| every contractor for the work to furnish, supply and deliver
a | 14 |
| bond to the State, or to the political subdivision thereof | 15 |
| entering into
the contract, as the case may be, with good and | 16 |
| sufficient sureties. The
amount of the bond shall be fixed by |
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| the officials, boards, commissions,
commissioners or agents, | 2 |
| and the bond, among other conditions,
shall be
conditioned for | 3 |
| 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, | 5 |
| whether by
subcontractor or otherwise.
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| If the contract is for emergency repairs as provided in the | 7 |
| Illinois
Procurement
Code, proof of payment for all labor, | 8 |
| materials, apparatus, fixtures, and
machinery may be
furnished | 9 |
| in lieu of the bond required by this Section.
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| Each such bond is deemed to contain the following | 11 |
| provisions whether
such provisions are inserted in such bond or | 12 |
| 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 | 15 |
| the contract
or contracts entered into between the principal | 16 |
| and the State or any
political subdivision thereof will be | 17 |
| performed and fulfilled and to pay
all persons, firms and | 18 |
| corporations having contracts with the principal or
with | 19 |
| subcontractors, all just claims due them under the provisions | 20 |
| of such
contracts for labor performed or materials furnished in | 21 |
| the performance of
the contract on account of which this bond | 22 |
| is given, when such claims are
not satisfied out of the | 23 |
| contract price of the contract on account of which
this bond is | 24 |
| given, after final settlement between the officer, board,
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| commission or agent of the State or of any political | 26 |
| subdivision thereof
and the principal has been made."
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| The surety bond required by this Section may be acquired | 2 |
| from the
company, agent or broker of the contractor's choice. | 3 |
| The bond and sureties
shall
be subject to the right of | 4 |
| reasonable approval or disapproval, including
suspension, by | 5 |
| the State or political subdivision thereof concerned. In the
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| case of State construction contracts, a contractor shall not be | 7 |
| required to
post a cash bond or letter of credit in addition to | 8 |
| or as a substitute for the
surety bond required by this | 9 |
| Section.
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| When other than motor fuel tax funds, federal-aid funds, or | 11 |
| other
funds received from the State are used, a political | 12 |
| subdivision may allow
the contractor to provide a | 13 |
| non-diminishing irrevocable bank letter of
credit, in lieu of | 14 |
| the bond required by this Section, on contracts under
$100,000 | 15 |
| to comply with the requirements of this Section. Any such bank
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| letter of credit shall contain all provisions required for | 17 |
| bonds by this
Section.
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| Notwithstanding this or any other law, in order to promote | 19 |
| business competition and the stability and growth of small | 20 |
| businesses, the Capital Development Board may accept a surety | 21 |
| bond guaranteed by the federal Small Business Administration or | 22 |
| a second party bond for a public construction contract if the | 23 |
| contractor is a small business. As used in this Section, | 24 |
| "second party bond" means a bond that designates as principal, | 25 |
| guarantor, or both, a person or persons in addition to the | 26 |
| person to whom the contract is proposed for award. The Capital |
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| Development Board may adopt rules to implement this Section. | 2 |
| For purposes of this Section, a small business is a | 3 |
| construction business with annual sales and receipts of no more | 4 |
| than $27,000,000. | 5 |
| (Source: P.A. 93-221, eff. 1-1-04.)
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| Section 99. Effective date. This Act takes effect July 1, | 7 |
| 2007.".
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