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90_HB3556eng
New Act
Creates the Contractor Unified License and Permit Bond
Act. Establishes a unified license and permit bond for
contractors to file with the county recorder to be used
instead of individual license or permit bonds required by the
county or a municipality within that county. Provides that
the bond shall be in the amount of at least $10,000.
Provides that the unified license and permit bond does not
prohibit reasonable local license and permit fees. Defines
contractor. Preempts home rule. Effective immediately.
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1 AN ACT concerning contractor license and permit bonds.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. This Act may be cited as the Contractor
5 Unified License and Permit Bond Act.
6 Section 5. Application. Except for the City of Chicago,
7 this Act applies to all counties, municipalities, and home
8 rule units.
9 Section 10. Definitions. As used in this Act,
10 "Contractor" means any person who, in any capacity other
11 than as the employee of another for wages as the sole
12 compensation, undertakes to construct, alter, repair, move,
13 wreck, or demolish any fixture or structure. The term
14 includes a subcontractor or specialty contractor, but does
15 not include a person who furnishes only materials or
16 supplies.
17 "Home rule unit" has the meaning provided in Section 6 of
18 Article VII of the Illinois Constitution.
19 "Municipality" means a city, village, incorporated town,
20 or township.
21 "Unified license and permit bond" means a single bond
22 combining what are commonly known as a license bond and a
23 permit bond, issued on a uniform document prescribed by the
24 county board or board of county commissioners that includes
25 the name of the county, the name and address of the
26 contractor, the amount of the unified bond, the time period
27 covered by the unified bond, and other required terms and
28 conditions of the unified bond.
29 Section 15. Rules. The county board or county board of
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1 commissioners may adopt rules and enter into
2 intergovernmental agreements to implement this Act.
3 Section 20. Unified license and permit bond.
4 (a) A contractor seeking to do work or doing work in a
5 county or municipality may obtain a unified license and
6 permit bond. This unified license and permit bond may be
7 used by the contractor, at the contractor's discretion,
8 instead of any other license or permit bond, or both,
9 required of a contractor by the county or a municipality
10 within that county. The bond shall be in the amount of at
11 least $50,000 for counties included within the provisions of
12 the Northeastern Illinois Planning Act and in the amount of
13 at least $25,000 for all other counties.
14 (b) The unified license and permit bond shall be held
15 for compliance with the ordinances and regulations governing
16 contractors in the county or any municipality within that
17 county where the contractor seeks to do work or is doing
18 work. The unified bond required by this Act shall be filed
19 by the contractor with the county clerk. At the time of
20 filing, the county clerk may charge a reasonable
21 administration fee, determined by the county board or board
22 of county commissioners.
23 (c) If a contractor elects to use a unified license and
24 permit bond under this Act and the territory of a
25 municipality where a contractor seeks to do or is doing work
26 is included within more than one county, then the contractor
27 shall obtain a unified license and permit bond from each
28 county and shall file a unified bond with each of the
29 respective county clerks whether or not the contractor seeks
30 to do or is doing work in that part of the municipality
31 included in only one of the counties.
32 In addition, the contractor shall file a certified copy
33 of the unified bond with the clerk in the municipality within
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1 that county where the contractor seeks to do work or is doing
2 work. At the time of the filing, the clerk may charge a
3 reasonable administration fee, determined by the corporate
4 authorities of the municipality.
5 Section 25. Local permits, licenses, or performance
6 bonds. This Act does not prohibit a county or municipality
7 within that county from requiring local permits, licenses, or
8 performance bonds for contractors to do business in that
9 county or municipality or from charging reasonable permit or
10 license fees or reasonable amounts for performance bonds.
11 Section 30. Home rule. A home rule unit may not
12 regulate unified license and permit bonds for contractors in
13 a manner inconsistent with this Act. This Section is a
14 limitation under subsection (i) of Section 6 of Article VII
15 of the Illinois Constitution on the concurrent exercise by
16 home rule units of powers and functions exercised by the
17 State.
18 Section 99. Effective date. This Act takes effect upon
19 becoming law.