Bill Amendment: IL SB3053 | 2015-2016 | 99th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: GOVERNMENT-TECH

Status: 2016-07-31 - Senate Floor Amendment No. 1 Pursuant to Senate Rule 3-9(b) / Referred to Assignments [SB3053 Detail]

Download: Illinois-2015-SB3053-Senate_Amendment_001.html

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Sen. Pamela J. Althoff

Filed: 4/8/2016

09900SB3053sam001 LRB099 20702 AWJ 47223 a
AMENDMENT TO SENATE BILL 3053
AMENDMENT NO. ______. Amend Senate Bill 3053 by replacing
everything after the enacting clause with the following:
"Section 5. The Public Construction Bond Act is amended by
changing Section 3 as follows:
(30 ILCS 550/3)
Sec. 3. Builder or developer cash bond or other surety.
(a) Except as otherwise provided under subsection (a-5), a
A county or municipality may not require a cash bond,
irrevocable letter of credit, surety bond, or letter of
commitment issued by a bank, savings and loan association,
surety, or insurance company from a builder or developer to
guarantee completion of a project improvement when the builder
or developer has filed with the county or municipal clerk a
current, irrevocable letter of credit, surety bond, or letter
of commitment issued by a bank, savings and loan association,

09900SB3053sam001 - 2 - LRB099 20702 AWJ 47223 a
surety, or insurance company, deemed good and sufficient by the
county or municipality accepting such security, in an amount
equal to or greater than 110% of the amount of the bid on each
project improvement. A builder or developer has the option to
utilize a cash bond, irrevocable letter of credit, surety bond,
or letter of commitment, issued by a bank, savings and loan
association, surety, or insurance company, deemed good and
sufficient by the county or municipality, to satisfy any cash
bond requirement established by a county or municipality.
Except for a municipality or county with a population of
1,000,000 or more, the county or municipality must approve and
deem a surety or insurance company good and sufficient for the
purposes set forth in this Section if the surety or insurance
company is authorized by the Illinois Department of Insurance
to sell and issue sureties in the State of Illinois.
(a-5) Notwithstanding subsection (a), a county or
municipality may, by ordinance, require a cash bond,
irrevocable letter of credit, surety bond, or letter of
commitment issued by a bank, savings and loan association,
surety, or insurance company from a builder or developer to
guarantee completion of a project improvement without regard to
whether the builder or developer has filed with the county or
municipal clerk a current, irrevocable letter of credit, surety
bond, or letter of commitment issued by a bank, savings and
loan association, surety, or insurance company, deemed good and
sufficient by the county or municipality accepting such

09900SB3053sam001 - 3 - LRB099 20702 AWJ 47223 a
security, or the amount of such security. In such an ordinance,
the county or municipality may also specify whether any of the
following may or may not be used by a builder or developer to
satisfy the cash bond requirement of the county or
municipality: an irrevocable letter of credit, surety bond, or
letter of commitment issued by a bank, savings and loan
association, surety, or insurance company.
(b) If a county or municipality receives a cash bond,
irrevocable letter of credit, or surety bond from a builder or
developer to guarantee completion of a project improvement, the
county or municipality shall (i) register the bond under the
address of the project and the construction permit number and
(ii) give the builder or developer a receipt for the bond. The
county or municipality shall establish and maintain a separate
account for all cash bonds received from builders and
developers to guarantee completion of a project improvement.
(c) The county or municipality shall refund a cash bond to
a builder or developer, or release the irrevocable letter of
credit or surety bond, within 60 days after the builder or
developer notifies the county or municipality in writing of the
completion of the project improvement for which the bond was
required. For these purposes, "completion" means that the
county or municipality has determined that the project
improvement for which the bond was required is complete or a
licensed engineer or licensed architect has certified to the
builder or developer and the county or municipality that the

09900SB3053sam001 - 4 - LRB099 20702 AWJ 47223 a
project improvement has been completed to the applicable codes
and ordinances. The county or municipality shall pay interest
to the builder or developer, beginning 60 days after the
builder or developer notifies the county or municipality in
writing of the completion of the project improvement, on any
bond not refunded to a builder or developer, at the rate of 1%
per month.
(d) A home rule county or municipality may not require or
maintain cash bonds, irrevocable letters of credit, surety
bonds, or letters of commitment issued by a bank, savings and
loan association, surety, or insurance company from builders or
developers in a manner inconsistent with this Section. This
Section supersedes and controls over other provisions of the
Counties Code or Illinois Municipal Code as they apply to and
guarantee completion of a project improvement that is required
by the county or municipality, regardless of whether the
project improvement is a condition of annexation agreements.
This Section is a denial and limitation under subsection (i) of
Section 6 of Article VII of the Illinois Constitution on the
concurrent exercise by a home rule county or municipality of
powers and functions exercised by the State.
(Source: P.A. 96-1000, eff. 7-2-10.)
Section 10. The Illinois Municipal Code is amended by
changing Section 11-39-3 as follows:

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(65 ILCS 5/11-39-3)
Sec. 11-39-3. Builder or developer cash bond or other
surety.
(a) Except as otherwise provided under subsection (a-5), a
A municipality may not require a cash bond, irrevocable letter
of credit, surety bond, or letter of commitment issued by a
bank, savings and loan association, surety, or insurance
company from a builder or developer to guarantee completion of
a project improvement when the builder or developer has filed
with the municipal clerk a current, irrevocable letter of
credit, surety bond, or letter of commitment issued by a bank,
savings and loan association, surety, or insurance company,
deemed good and sufficient by the municipality accepting such
security, in an amount equal to or greater than 110% of the
amount of the bid on each project improvement. A builder or
developer has the option to utilize a cash bond, irrevocable
letter of credit, surety bond, or letter of commitment, issued
by a bank, savings and loan association, surety, or insurance
company, deemed good and sufficient by the municipality, to
satisfy any cash bond requirement established by a
municipality. Except for a municipality or county with a
population of 1,000,000 or more, the municipality must approve
and deem a surety or insurance company good and sufficient for
the purposes set forth in this Section if the surety or
insurance company is authorized by the Illinois Department of
Insurance to sell and issue sureties in the State of Illinois.

09900SB3053sam001 - 6 - LRB099 20702 AWJ 47223 a
(a-5) Notwithstanding subsection (a), a municipality may,
by ordinance, require a cash bond, irrevocable letter of
credit, surety bond, or letter of commitment issued by a bank,
savings and loan association, surety, or insurance company from
a builder or developer to guarantee completion of a project
improvement without regard to whether the builder or developer
has filed with the municipal clerk a current, irrevocable
letter of credit, surety bond, or letter of commitment issued
by a bank, savings and loan association, surety, or insurance
company, deemed good and sufficient by the municipality
accepting such security, or the amount of such security. In
such an ordinance, the municipality may also specify whether
any of the following may or may not be used by a builder or
developer to satisfy the cash bond requirement of the
municipality: an irrevocable letter of credit, surety bond, or
letter of commitment issued by a bank, savings and loan
association, surety, or insurance company.
(b) If a municipality receives a cash bond, irrevocable
letter of credit, or surety bond from a builder or developer to
guarantee completion of a project improvement, the
municipality shall (i) register the bond under the address of
the project and the construction permit number and (ii) give
the builder or developer a receipt for the bond. The
municipality shall establish and maintain a separate account
for all cash bonds received from builders and developers to
guarantee completion of a project improvement.

09900SB3053sam001 - 7 - LRB099 20702 AWJ 47223 a
(c) The municipality shall refund a cash bond to a builder
or developer, or release the irrevocable letter of credit or
surety bond within 60 days after the builder or developer
notifies the municipality in writing of the completion of the
project improvement for which the bond was required. For these
purposes, "completion" means that the municipality has
determined that the project improvement for which the bond was
required is complete or a licensed engineer or licensed
architect has certified to the builder or developer and the
municipality that the project improvement has been completed to
the applicable codes and ordinances. The municipality shall pay
interest to the builder or developer, beginning 60 days after
builder or developer notifies the municipality in writing of
the completion of the project improvement, on any bond not
refunded to a builder or developer, at the rate of 1% per
month.
(d) A home rule municipality may not require or maintain
cash bonds, irrevocable letters of credit, surety bonds, or
letters of commitment issued by a bank, savings and loan
association, surety, or insurance company from builders or
developers in a manner inconsistent with this Section. This
Section supersedes and controls over other provisions of this
Code as they apply to and guarantee completion of a project
improvement that is required by the municipality, regardless of
whether the project improvement is a condition of annexation
agreements. This Section is a denial and limitation under

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subsection (i) of Section 6 of Article VII of the Illinois
Constitution on the concurrent exercise by a home rule
municipality of powers and functions exercised by the State.
(Source: P.A. 96-1000, eff. 7-2-10.)
Section 15. The Illinois Highway Code is amended by
changing Sections 5-701.15 and 7-202.21a as follows:
(605 ILCS 5/5-701.15) (from Ch. 121, par. 5-701.15)
Sec. 5-701.15. The formula allocation for counties for the
distribution of motor fuel tax funds, provided for in Section 8
in the "Motor Fuel Tax Law", may be used by the county board
for the maintenance or improvement of nondedicated subdivision
roads established prior to July 23, 1959. Any such improved
road becomes, by operation of law, a part of the township or
district road system in accordance with Section 6-325 of this
Code. The county board may shall condition its approval, as
required by this Section, upon proportional matching
contributions, whether in cash, kind, services or otherwise, by
property owners in the subdivision where such a road is
situated. No more than the amount of the increase in allocation
of such funds allocated under the formula as provided in
Section 8 in the "Motor Fuel Tax Law" which is attributable to
this amendatory Act of 1979 and any subsequent amendatory Act
and subsequently approved as provided in this Section, may be
expended on eligible nondedicated subdivision roads.

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(Source: P.A. 83-957.)
(605 ILCS 5/7-202.21a) (from Ch. 121, par. 7-202.21a)
Sec. 7-202.21a. The formula allocation for municipalities
for the distribution of motor fuel tax funds, provided for in
Section 8 in the "Motor Fuel Tax Law", may be used by the
municipal authority for the maintenance or improvement of
nondedicated subdivision roads established prior to July 23,
1959. Any such improved road becomes, by operation of law, a
part of the municipal street system of such municipality. The
municipal authority may shall condition its approval, as
required by this Section, upon proportional matching
contributions, whether in cash, kind, services or otherwise, by
property owners in the subdivision where such a road is
situated. No more than the amount of the increase in allocation
of such funds allocated under the formula as provided in
Section 8 in the "Motor Fuel Tax Law" which is attributable to
this amendatory Act and any subsequent amendatory Act and
subsequently approved as provided in this Section may be
expended on eligible nondedicated subdivision roads.
(Source: P.A. 86-447.)".