Bill Text: IL SB2729 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Creates the Government Contract Retainage Act. Defines terms, including that "retainage" means a portion of money withheld from the payment of a contract for a specified period of time to ensure that a contractor or subcontractor finishes a construction project completely and finishes in the manner specified in the contract. Provides that interest shall accrue monthly on the first day of each month on retainage withheld by a governmental unit at a specified rate set by the State Treasurer. Requires retainage withheld by a governmental unit to be paid not more than 60 days after being retained, including interest accrued, unless the retainage was withheld on the last pay period of a project shall, which shall be paid not more than 120 days after being retained. Limits the concurrent exercise of home rule powers.

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Introduced) 2024-06-26 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments [SB2729 Detail]

Download: Illinois-2023-SB2729-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2729 Introduced 1/12/2024, by Sen. Ram Villivalam SYNOPSIS AS INTRODUCED:
New Act
Creates the Government Contract Retainage Act. Defines terms, including that "retainage" means a portion of money withheld from the payment of a contract for a specified period of time to ensure that a contractor or subcontractor finishes a construction project completely and finishes in the manner specified in the contract. Provides that interest shall accrue monthly on the first day of each month on retainage withheld by a governmental unit at a specified rate set by the State Treasurer. Requires retainage withheld by a governmental unit to be paid not more than 60 days after being retained, including interest accrued, unless the retainage was withheld on the last pay period of a project shall, which shall be paid not more than 120 days after being retained. Limits the concurrent exercise of home rule powers.
LRB103 36029 AWJ 66116 b
A BILL FOR
SB2729 LRB103 36029 AWJ 66116 b
AN ACT concerning government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Government Contract Retainage Act.
Section 5. Definitions. As used in this Act:
"Governmental unit" means a State agency or a unit of
local government.
"State agency" has the meaning given to "state agencies"
in Section 1-7 of the Illinois State Auditing Act.
"Retainage" means a portion of money withheld from the
payment of a contract for a specified period of time to ensure
that a contractor or subcontractor finishes a construction
project completely and finishes in the manner specified in the
contract.
Section 10. Interest on retainage. Interest shall accrue
monthly on the first day of each month on retainage withheld by
a governmental unit. The accrual rate shall be equal to the
rate set by the Treasurer on the first of each month for the
Local Government Investment Pool Fund Daily Rates.
Section 15. Payment of retainage. Retainage withheld by a

SB2729 - 2 - LRB103 36029 AWJ 66116 b
governmental unit shall be paid not more than 60 days after
being retained, including interest accrued under Section 10,
except that retainage withheld on the last pay period of a
project shall be paid not more than 120 days after being
retained.