Bill Text: IL SB3052 | 2017-2018 | 100th General Assembly | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Contractor Prompt Payment Act. Prohibits the withholding of a retainage from progress payments or final payments in excess of 5% of the payment. Effective immediately.

Spectrum: Strong Partisan Bill (Democrat 18-1)

Status: (Failed) 2018-11-28 - Total Veto Stands [SB3052 Detail]

Download: Illinois-2017-SB3052-Engrossed.html

SB3052 EngrossedLRB100 19273 JLS 34539 b
1 AN ACT concerning business.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Contractor Prompt Payment Act is amended by
5adding Section 20 as follows:
6 (815 ILCS 603/20 new)
7 Sec. 20. Retainage. No construction contract may permit
8the withholding of retainage from any payment in excess of the
9amounts permitted in this Section. A construction contract may
10provide for the withholding of retainage of up to 10% of any
11payment made prior to the completion of 50% of the contract.
12When a contract is 50% complete, retainage withheld shall be
13reduced so that no more than 5% is held. After the contract is
1450% complete, no more than 5% of the amount of any subsequent
15payments made under the contract may be held as retainage.
16 Section 99. Effective date. This Act takes effect upon
17becoming law.