Bill Text: IL HB5790 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the Contractor Prompt Payment Act. Provides that a public construction contract may provide for the withholding of retainage of up to 5% (rather than 10%) of any payment made prior to the completion of 50% of the contract. Provides that when a contract is 50% complete, retainage withheld shall be reduced so that no more than 1% (rather than 5%) is held. Provides that after the contract is 50% complete, no more than 1% (rather than 5%) of the amount of any subsequent payments made under the contract may be held as retainage.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2022-11-16 - Referred to Rules Committee [HB5790 Detail]

Download: Illinois-2021-HB5790-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB5790 Introduced , by Rep. Eva-Dina Delgado SYNOPSIS AS INTRODUCED:
815 ILCS 603/20
Amends the Contractor Prompt Payment Act. Provides that a public construction contract may provide for the withholding of retainage of up to 5% (rather than 10%) of any payment made prior to the completion of 50% of the contract. Provides that when a contract is 50% complete, retainage withheld shall be reduced so that no more than 1% (rather than 5%) is held. Provides that after the contract is 50% complete, no more than 1% (rather than 5%) of the amount of any subsequent payments made under the contract may be held as retainage.
LRB102 28085 SPS 39888 b
A BILL FOR
HB5790 LRB102 28085 SPS 39888 b
AN ACT concerning business.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Contractor Prompt Payment Act is amended by
changing Section 20 as follows:
(815 ILCS 603/20)
Sec. 20. Retainage. No construction contract may permit
the withholding of retainage from any payment in excess of the
amounts permitted in this Section. A construction contract may
provide for the withholding of retainage of up to 5% 10% of any
payment made prior to the completion of 50% of the contract.
When a contract is 50% complete, retainage withheld shall be
reduced so that no more than 1% 5% is held. After the contract
is 50% complete, no more than 1% 5% of the amount of any
subsequent payments made under the contract may be held as
retainage.
(Source: P.A. 101-432, eff. 8-20-19.)