093_SB0155SB155 Engrossed LRB093 06706 SJM 06840 b AN ACT concerning procurement.

The IllinoisState ProcurementPrompt CodePayment Act is amended by addingchanging Section 30-227 as follows:

(30 ILCS 500/30-22540/7) new)(from _e_____________________p______________________a_____________Ch. _____c___ _a_____________________p______________________t_____________ _____c_______________________t_____________________1____________ ______p_____________________d_____________________h_____________ _____n_____________________t_______________________s____________ _____e_____________________a______________________h_____________ _____t_____________________b_____________________ _b_____________________o_______________________p____________ _____o_____________________T_______________________i____________ _____n_____________________a_______________________c____________ _____c____ Section 99.

Effective127, date.par.

This132.407) ActSec. takes effect upon becoming law.

7.

___________t______________________a_____________ _____i_____ _a_____________________i______________________p_____________ _____i_____________________u______________________e_____________ _____p_____________________c______________________i_____________ ______p____________________l_______________________t____________ _____r_____________________e______________________a_____________ _____e_____________________c______________________o_____________ _____i_____________________c______________________n_____________ _____i_____________________t________________________o___________ _______i____________________h_____________________e_____________ _____m_______ When a contractor receives any payment, the contractor shall pay each subcontractor and material supplier in proportion to the work completed by each subcontractor and material supplier their application less any retention.

If the contractor receives less than the full payment due under the public construction contract, the contractor shall be obligated to disburse on a pro rata basis those funds received, with the contractor, subcontractors and material suppliers each receiving a prorated portion based on the amount of payment.

When, however, the public owner does not release the full payment due under the contract because there are specific areas of work or materials the contractor is rejecting or because the contractor has otherwise determined such areas are not suitable for payment, then those specific SB155 Engrossed -2- LRB093 06706 SJM 06840 b subcontractors or suppliers involved shall not be paid for that portion of work rejected or deemed not suitable for payment and all other subcontractors and suppliers shall be paid in full.

_b__ If the contractor, without reasonable cause, fails to make f____ --- payment o______________________u_____________ to his subcontractors and material suppliers within 15 days after receipt of payment under the public construction contract, the contractor shall pay to his subcontractors and material suppliers, in addition to the payment due them, interest in the amount of 4__ -- per month, calculated from the expiration of the 15-day period until fully paid.

This subsection shall also apply to any payments made by subcontractors and material suppliers to their subcontractors and material suppliers and to all payments made to lower tier subcontractors and material suppliers throughout the contracting chain.

_________________a______________________n_____________ _a_____________________t______________________i_____________ _a_____________________e______________________t_____________ _u_______________________c____________________o_____________ _a_____________________h_______________________m____________ _r_____________________h______________________g_____________ _o_____________________e______________________r_____________ _o_____________________o______________________t_______ _________________o______________________i_____________ _f_____________________c______________________a_____________ _r_____________________f______________________m_____________ _o______________________a_____________________e_____________ _o_____________________y______________________n_____________ _r_____________________o______________________i_____________ _m______________________t______________________a____________ _u_____________________f______________________h_____________ _p______________________t_____________________t_____________ SB155 Engrossed -3- LRB093 06706 SJM 06840 b _o_____________________g__ _________________o______________________e_____________ _h_____________________d______________________f_____________ _e_____________________r______________________(_____________ _t_____________________c________________________d___________ _o_____________________e______________________u_____________ _n______________________p_____________________1_____________ _h_____________________r___________________ _________________t______________________f_____________ _i_____________________r______________________s_____________ _i_____________________o______________________b_____________ _n______________________p_____________________o_____________ _e_____________________i______________________f_____________ _f______________________f________ (Source:

P.A.

87-773.)