95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB4794


 
Introduced , by Rep. Timothy L. Schmitz
 
SYNOPSIS AS INTRODUCED:
 		








  



50 ILCS 505/3
  from Ch. 85, par. 5603







    Amends the Local Government Prompt Payment Act. Provides that it is unlawful to withhold more than 5% retainage from payments earned by contractors and subcontractors for goods and services. Prohibits retainage if a payment bond has been furnished. Effective immediately.
















LRB095 18063 HLH 44146 b

















FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











HB4794

LRB095 18063 HLH 44146 b






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    AN ACT concerning finance.

 
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    Be it enacted by the People of the State of Illinois,
 
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represented in the General Assembly:


 
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    Section 5. The Local Government Prompt Payment Act is 
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amended  by changing Section 3 as follows:
 


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    (50 ILCS 505/3)  (from Ch. 85, par. 5603)


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    Sec. 3. Approval of bills; retainage. 
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    (a) The appropriate local governmental official or agency

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receiving goods or services must approve or disapprove a bill 
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from a vendor
or contractor for goods or services furnished the 
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local governmental agency
within 30 days after the receipt of 
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such bill or within 30 days after the
date on which the goods 
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or services were received, whichever is later.
If one or more 
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items on a construction related bill or invoice are 
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disapproved, but not the entire bill or invoice, then the 
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portion that is not disapproved shall be paid. When safety or 
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quality assurance testing of goods by the local governmental

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agency is necessary before the approval or disapproval of a 
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bill and such
testing cannot be completed within 30 days after 
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receipt of the goods,
approval or disapproval of the bill must 
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be made immediately upon
completion of the testing or within 60 
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days after receipt of the goods,
whichever occurs first.  
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Written notice shall be mailed to the vendor or
contractor 
 


 






HB4794
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LRB095 18063 HLH 44146 b




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immediately if a bill is disapproved.

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    (b) For goods or services furnished under this Act, it is 
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unlawful to withhold more than 5% retainage on payments earned 
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by contractors and subcontractors. No retainage may be withheld 
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on projects for which a payment bond has been furnished 
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pursuant to the Illinois Construction Bond Act. 
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(Source: P.A. 94-972, eff. 7-1-07.)

 

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    Section 99. Effective date. This Act takes effect upon 
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becoming law.