093_SB0155sam003

 










                                     LRB093 06706 MKM 13768 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 notify by mail or  e-mail  each  subcontractor
14    and  material supplier, who is known to the State official or
15    agency, of the  date  and  amount  of  the  voucher.  When  a
16    contractor  receives  any  payment,  the contractor shall pay
17    each subcontractor and material supplier in proportion to the
18    work completed by each subcontractor  and  material  supplier
19    their  application  less  any  retention.   If the contractor
20    receives less than the full  payment  due  under  the  public
21    construction  contract,  the contractor shall be obligated to
22    disburse on a pro rata basis those funds received,  with  the
 
                            -2-      LRB093 06706 MKM 13768 a
 1    contractor,   subcontractors   and  material  suppliers  each
 2    receiving a prorated portion based on the amount of  payment.
 3    When,  however,  the  public  owner does not release the full
 4    payment due under the contract  because  there  are  specific
 5    areas  of  work  or  materials the contractor is rejecting or
 6    because the contractor has otherwise  determined  such  areas
 7    are   not   suitable   for   payment,   then  those  specific
 8    subcontractors or suppliers involved shall not  be  paid  for
 9    that  portion  of  work  rejected  or deemed not suitable for
10    payment and all other subcontractors and suppliers  shall  be
11    paid in full.
12        (b)  If  the  contractor, without reasonable cause, fails
13    to make full any payment of amounts due under subsection  (a)
14    to  his  subcontractors and material suppliers within 15 days
15    after  receipt  of  payment  under  the  public  construction
16    contract, the contractor shall pay to his subcontractors  and
17    material  suppliers,  in  addition  to  the payment due them,
18    interest in the amount of 4% 2% per  month,  calculated  from
19    the  expiration  of the 15-day period until fully paid.  This
20    subsection  shall  also  apply  to  any  payments   made   by
21    subcontractors and material suppliers to their subcontractors
22    and material suppliers and to all payments made to lower tier
23    subcontractors   and   material   suppliers   throughout  the
24    contracting chain. A contractor who fails to make payment  in
25    full  as  provided  in  this  subsection within 45 days after
26    receipt of payment under the public construction contract  is
27    barred   from  entering  into  a  State  public  construction
28    contract for a period of one year beginning on that 45th day.
29    (Source: P.A. 87-773.)".