093_SB0155sam005











                                     LRB093 06706 RCE 14646 a

 1                    AMENDMENT TO SENATE BILL 155

 2        AMENDMENT NO.     .  Amend Senate Bill 155,  AS  AMENDED,
 3    by  replacing  everything  after the enacting clause with the
 4    following:

 5        "Section 5.  The State Prompt Payment Act is  amended  by
 6    changing Section 7 as follows:

 7        (30 ILCS 540/7) (from Ch. 127, par. 132.407)
 8        Sec.   7.  Payments   to   subcontractors   and  material
 9    suppliers.
10        (a)  When a State  official  or  agency  responsible  for
11    administering a contract submits a voucher to the Comptroller
12    for  payment  to  a contractor, that State official or agency
13    shall promptly  make  available  electronically  the  voucher
14    number,  the  date  of  the  voucher,  and  the amount of the
15    voucher.  The  State  official  or  agency  responsible   for
16    administering  the  contract shall provide subcontractors and
17    material suppliers, known to the State  official  or  agency,
18    with   instructions   on   how   to   access  the  electronic
19    information. When a  contractor  receives  any  payment,  the
20    contractor shall pay each subcontractor and material supplier
21    in proportion to the work completed by each subcontractor and
22    material  supplier  their application less any retention.  If
 
                            -2-      LRB093 06706 RCE 14646 a
 1    the contractor receives less than the full payment due  under
 2    the  public  construction  contract,  the contractor shall be
 3    obligated to  disburse  on  a  pro  rata  basis  those  funds
 4    received,  with  the  contractor, subcontractors and material
 5    suppliers each receiving a  prorated  portion  based  on  the
 6    amount  of payment.  When, however, the public owner does not
 7    release the full payment due under the contract because there
 8    are specific areas of work or  materials  the  contractor  is
 9    rejecting  or because the contractor has otherwise determined
10    such areas are not suitable for payment, then those  specific
11    subcontractors  or  suppliers  involved shall not be paid for
12    that portion of work rejected  or  deemed  not  suitable  for
13    payment  and  all other subcontractors and suppliers shall be
14    paid in full.
15        (b)  If the contractor, without reasonable  cause,  fails
16    to  make full any payment of amounts due under subsection (a)
17    to his subcontractors and material suppliers within  15  days
18    after  receipt  of  payment  under  the  public  construction
19    contract,  the contractor shall pay to his subcontractors and
20    material suppliers, in addition  to  the  payment  due  them,
21    interest  in  the  amount of 4% 2% per month, calculated from
22    the expiration of the 15-day period until fully  paid.   This
23    subsection   shall   also  apply  to  any  payments  made  by
24    subcontractors and material suppliers to their subcontractors
25    and material suppliers and to all payments made to lower tier
26    subcontractors  and   material   suppliers   throughout   the
27    contracting chain.
28             (1)  If  a  contractor,  without  reasonable  cause,
29        fails  to  make payment in full as provided in subsection
30        (a) within 15 days after receipt  of  payment  under  the
31        public   construction   contract,  any  subcontractor  or
32        material supplier to whom payments are owed  may  file  a
33        written  notice with the State official or agency setting
34        forth  the  amount  owed  by  the  contractor   and   the
 
                            -3-      LRB093 06706 RCE 14646 a
 1        contractor's failure to timely pay the amount owed.
 2             (2)  The  State  official  or agency, within 15 days
 3        after receipt of a subcontractor's or material supplier's
 4        written notice of the failure to receive payment from the
 5        contractor, shall hold a hearing to determine whether the
 6        contractor withheld payment,  without  reasonable  cause,
 7        from  the  subcontractors and material suppliers and what
 8        amount, if any, is due to the subcontractors and material
 9        suppliers. The State official  or  agency  shall  provide
10        appropriate  notice to the parties of the date, time, and
11        location of the hearing.
12             (3) If the State official or agency determines  that
13        the  contractor  failed  to make payment in full, without
14        reasonable cause, as provided in subsection (a), then the
15        State official or agency shall, in  writing,  direct  the
16        contractor  to  pay the amount owed to the subcontractors
17        and material suppliers plus interest within 15 days after
18        the State official's or agency's finding.
19             (4)  If a contractor  fails  to  make  full  payment
20        within  15  days  after  the State official's or agency's
21        finding,  then  the  contractor  shall  be  barred   from
22        entering  into a State public construction contract for a
23        period of one year beginning on the  date  of  the  State
24        official's or agency's finding.
25    (Source: P.A. 87-773.)".