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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:
| | | 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. | |
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| | A BILL FOR |
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| | SB2729 | | LRB103 36029 AWJ 66116 b |
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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 |