SB 104

Abstract

Amends the Illinois Procurement Code. Provides that the Capital Development Board and the Department of Transportation shall each, by rule, implement a pilot program under which select construction contracts shall contain provisions that if a subcontractor has performed in accordance with the provisions of the subcontract and the work has been accepted by the State agency, the State agency shall pay the subcontractor directly. Provides that the program shall be implemented by January 1, 2021. Amends the State Prompt Payment Act. Provides that certain provisions concerning payments to subcontractors do not apply to payments to a subcontractor for work performed under a subcontract entered into with a construction contractor if the contract contains a provision that the State agency shall pay the subcontractor directly. Senate Committee Amendment No. 1 Deletes reference to: 30 ILCS 500/20-120 Adds reference to: 30 ILCS 540/1 from Ch. 127, par. 132.401 Replaces everything after the enacting clause. Amends the State Prompt Payment Act. Modifies the term "a proper bill or invoice" to include the names of all subcontractors or subconsultants to be paid from the bill or invoice and the amounts due to each of them, if any. Requires contractors to pay each subcontractor and material supplier within 7 business days after receiving payment. Requires contractors to provide written notice of refusal to pay a subcontractor or material supplier electronically within 7 business days after receiving payment. Provides a penalty for a contractor's failure to provide payment to a subcontractor or material supplier electronically within 7 business days after receiving payment. Provides that on or before July 2021, the Department of Transportation shall publish on its website a searchable database that allows for queries by the name of a subcontractor or the pay item of each pay period such that each pay item is associated with either the prime contractor or a subcontractor. Makes conforming changes. Senate Floor Amendment No. 2 Deletes reference to: 30 ILCS 500/20-120 Adds reference to: 30 ILCS 540/1 from Ch. 127, par. 132.401 Replaces everything after the enacting clause. Amends the State Prompt Payment Act. Provides that on and after July 1, 2021, "a proper bill or invoice" also includes the names of all subcontractors or subconsultants to be paid from the bill or invoice and the amounts due to each of them, if any. Requires contractors to pay each subcontractor and material supplier, either electronically, within 7 business days after receiving payment, or if paid by a printed check, the printed check must be postmarked within 7 business days after receiving payment. Requires contractors to provide written notice of refusal to pay a subcontractor or material supplier within 7 business days after receiving payment. Provides a penalty for a contractor's failure to provide payment to a subcontractor or material supplier within 7 business days after receiving payment. Provides that on or before July 2021, the Department of Transportation shall publish on its website a searchable database that allows for queries by the name of a subcontractor or the pay item such that each pay item is associated with either the prime contractor or a subcontractor. Makes conforming changes. Senate Floor Amendment No. 3 Requires the Department of Transportation to publish on its website a searchable database that allows for queries for each active construction contract by the name of a subcontractor or the pay item such that each pay item is associated with either the prime contractor or a subcontractor (currently, queries for each active construction contract not required). House Floor Amendment No. 1 Replaces everything after the enacting clause. Reinserts the provisions of the engrossed bill, and provides that when a contractor receives any payment, the contractor shall pay each subcontractor and material supplier electronically within 10 business days or 15 calendar days, whichever occurs earlier (as engrossed, payment required within 7 business days), or, if paid by a printed check, the printed check must be postmarked within 10 business days or 15 calendar days, whichever occurs earlier (as engrossed, postmark required within 7 business days), after receiving payment. Makes conforming changes. Fiscal Note, House Floor Amendment No. 1 (Dept. of Transportation) The changes to prompt pay will not add cost to current IDOT procedures. The query portal for the IDOT website will cost $100,000 to develop.