Bill > SB1980

This bill amends the State Prompt Payment Act to expand protections for subcontractors and material suppliers in construction contracts with both the Department of Transportation and the Capital Development Board. The bill requires contractors to pay subcontractors and material suppliers electronically within 10 business days or 15 calendar days after receiving payment, prorating payments if the full contract amount is not received. For these specific construction contracts, contractors are prohibited from reducing or offsetting payments to subcontractors without reasonable cause, which is carefully defined in the bill. If a contractor fails to make timely payments, they may be required to pay 2% monthly interest and could face administrative hearings. Repeat offenders may be barred from entering state public construction contracts for specified periods. The bill also provides a mechanism for subcontractors to request administrative hearings if they are not paid promptly, with potential remedies including ordered payments, interest, and attorney's fees. The legislation aims to ensure fair and timely payment practices in state construction contracts, protecting subcontractors and material suppliers from arbitrary payment reductions or delays.

Government Affairs

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1980&GAID=18&DocTypeID=SB&SessionID=114&GA=104