Bill Text: IL HB4418 | 2023-2024 | 103rd General Assembly | Introduced
Bill Title: Reinserts the provisions of the introduced bill with the following changes. Removes provisions relating to interest on retainage and payment of retainage. Adds that all governmental units shall deposit all retainage into an interest-bearing escrow account and the moneys in the escrow account and all interest shall be divided up between the contractor and subcontractors proportionally.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced) 2024-04-19 - Rule 19(a) / Re-referred to Rules Committee [HB4418 Detail]
Download: Illinois-2023-HB4418-Introduced.html
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1 | AN ACT concerning government.
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2 | Be it enacted by the People of the State of Illinois, | |||||||||||||||||||
3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the | |||||||||||||||||||
5 | Government Contract Retainage Act.
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6 | Section 5. Definitions. As used in this Act: | |||||||||||||||||||
7 | "Governmental unit" means a State agency or a unit of | |||||||||||||||||||
8 | local government. | |||||||||||||||||||
9 | "State agency" has the meaning given to "state agencies" | |||||||||||||||||||
10 | in Section 1-7 of the Illinois State Auditing Act. | |||||||||||||||||||
11 | "Retainage" means a portion of money withheld from the | |||||||||||||||||||
12 | payment of a contract for a specified period of time to ensure | |||||||||||||||||||
13 | that a contractor or subcontractor finishes a construction | |||||||||||||||||||
14 | project completely and finishes in the manner specified in the | |||||||||||||||||||
15 | contract.
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16 | Section 10. Interest on retainage. Interest shall accrue | |||||||||||||||||||
17 | monthly on the first day of each month on retainage withheld by | |||||||||||||||||||
18 | a governmental unit. The accrual rate shall be equal to the | |||||||||||||||||||
19 | rate set by the Treasurer on the first of each month for the | |||||||||||||||||||
20 | Local Government Investment Pool Fund Daily Rates.
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21 | Section 15. Payment of retainage. Retainage withheld by a |
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1 | governmental unit shall be paid not more than 60 days after | ||||||
2 | being retained, including interest accrued under Section 10, | ||||||
3 | except that retainage withheld on the last pay period of a | ||||||
4 | project shall be paid not more than 120 days after being | ||||||
5 | retained.
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