Illinois 2025-2026 Regular Session

Illinois Senate Bill SB0074 Compare Versions

Only one version of the bill is available at this time.

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1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0074 Introduced 1/13/2025, by Sen. Willie Preston SYNOPSIS AS INTRODUCED: New Act30 ILCS 540/1 from Ch. 127, par. 132.401 Creates the State Agency Retainage Act. Provides that, if a State agency determines that satisfactory progress has not been achieved by a contractor or subcontractor during any period for which a payment is to be made, a percentage of the payment may be retained by the State agency. Prohibits the amount of retainage under the Act from exceeding 10% of the approved estimated amount under the terms of the contract until the contract is 50% completed. Prohibits retainage of more than 5% of the contract for the duration of the contract. Authorizes retainage to be adjusted as the contract approaches completion to recognize better than expected performance, the ability to rely on alternative safeguards, and other factors. Further provides that on completion of all contract requirements, amounts retained under the Act must be paid promptly. Defines the terms "retainage" and "State agency". Amends the State Prompt Payment Act. Specifies that the State Prompt Payment Act does not apply to retainage withheld under the State Agency Retainage Act. LRB104 05978 JRC 16011 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0074 Introduced 1/13/2025, by Sen. Willie Preston SYNOPSIS AS INTRODUCED: New Act30 ILCS 540/1 from Ch. 127, par. 132.401 New Act 30 ILCS 540/1 from Ch. 127, par. 132.401 Creates the State Agency Retainage Act. Provides that, if a State agency determines that satisfactory progress has not been achieved by a contractor or subcontractor during any period for which a payment is to be made, a percentage of the payment may be retained by the State agency. Prohibits the amount of retainage under the Act from exceeding 10% of the approved estimated amount under the terms of the contract until the contract is 50% completed. Prohibits retainage of more than 5% of the contract for the duration of the contract. Authorizes retainage to be adjusted as the contract approaches completion to recognize better than expected performance, the ability to rely on alternative safeguards, and other factors. Further provides that on completion of all contract requirements, amounts retained under the Act must be paid promptly. Defines the terms "retainage" and "State agency". Amends the State Prompt Payment Act. Specifies that the State Prompt Payment Act does not apply to retainage withheld under the State Agency Retainage Act. LRB104 05978 JRC 16011 b LRB104 05978 JRC 16011 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0074 Introduced 1/13/2025, by Sen. Willie Preston SYNOPSIS AS INTRODUCED:
3	3	New Act30 ILCS 540/1 from Ch. 127, par. 132.401 New Act 30 ILCS 540/1 from Ch. 127, par. 132.401
4	4	New Act
5	5	30 ILCS 540/1 from Ch. 127, par. 132.401
6	6	Creates the State Agency Retainage Act. Provides that, if a State agency determines that satisfactory progress has not been achieved by a contractor or subcontractor during any period for which a payment is to be made, a percentage of the payment may be retained by the State agency. Prohibits the amount of retainage under the Act from exceeding 10% of the approved estimated amount under the terms of the contract until the contract is 50% completed. Prohibits retainage of more than 5% of the contract for the duration of the contract. Authorizes retainage to be adjusted as the contract approaches completion to recognize better than expected performance, the ability to rely on alternative safeguards, and other factors. Further provides that on completion of all contract requirements, amounts retained under the Act must be paid promptly. Defines the terms "retainage" and "State agency". Amends the State Prompt Payment Act. Specifies that the State Prompt Payment Act does not apply to retainage withheld under the State Agency Retainage Act.
7	7	LRB104 05978 JRC 16011 b LRB104 05978 JRC 16011 b
8	8	LRB104 05978 JRC 16011 b
9	9	A BILL FOR
10	10	SB0074LRB104 05978 JRC 16011 b SB0074 LRB104 05978 JRC 16011 b
11	11	SB0074 LRB104 05978 JRC 16011 b
12	12	1 AN ACT concerning government.
13	13	2 Be it enacted by the People of the State of Illinois,
14	14	3 represented in the General Assembly:
15	15	4 Section 1. Short title. This Act may be cited as the State
16	16	5 Agency Retainage Act.
17	17	6 Section 5. Definitions. As used in this Act:
18	18	7 "Retainage" means a portion of money withheld from the
19	19	8 payment of a contract for a specified period of time to ensure
20	20	9 that a contractor or subcontractor completes a construction
21	21	10 project in the manner specified in the contract. "Retainage"
22	22	11 does not include moneys withheld due to violations of local,
23	23	12 State, or federal laws.
24	24	13 "State agency" has the meaning given to "State agencies"
25	25	14 in Section 1-7 of the Illinois State Auditing Act.
26	26	15 Section 10. Determination of satisfactory progress. If a
27	27	16 State agency determines that satisfactory progress has not
28	28	17 been achieved by a contractor or subcontractor during any
29	29	18 period for which a payment is to be made, a percentage of the
30	30	19 payment may be retained by the State agency. Retainage may not
31	31	20 be used as a substitute for good contract management, and the
32	32	21 State agency may not withhold funds without cause.
33	33	22 Determinations to retain and the specific amount to be
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37	37	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0074 Introduced 1/13/2025, by Sen. Willie Preston SYNOPSIS AS INTRODUCED:
38	38	New Act30 ILCS 540/1 from Ch. 127, par. 132.401 New Act 30 ILCS 540/1 from Ch. 127, par. 132.401
39	39	New Act
40	40	30 ILCS 540/1 from Ch. 127, par. 132.401
41	41	Creates the State Agency Retainage Act. Provides that, if a State agency determines that satisfactory progress has not been achieved by a contractor or subcontractor during any period for which a payment is to be made, a percentage of the payment may be retained by the State agency. Prohibits the amount of retainage under the Act from exceeding 10% of the approved estimated amount under the terms of the contract until the contract is 50% completed. Prohibits retainage of more than 5% of the contract for the duration of the contract. Authorizes retainage to be adjusted as the contract approaches completion to recognize better than expected performance, the ability to rely on alternative safeguards, and other factors. Further provides that on completion of all contract requirements, amounts retained under the Act must be paid promptly. Defines the terms "retainage" and "State agency". Amends the State Prompt Payment Act. Specifies that the State Prompt Payment Act does not apply to retainage withheld under the State Agency Retainage Act.
42	42	LRB104 05978 JRC 16011 b LRB104 05978 JRC 16011 b
43	43	LRB104 05978 JRC 16011 b
44	44	A BILL FOR
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50	50	New Act
51	51	30 ILCS 540/1 from Ch. 127, par. 132.401
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70	70	1 withheld must be made by the State agency on a case-by-case
71	71	2 basis. These determinations must be based on an assessment of
72	72	3 past performance and the likelihood that such performance will
73	73	4 continue. The amount of retainage withheld may not exceed 10%
74	74	5 of the contract amount until the contract is 50% completed,
75	75	6 may not exceed 5% for the duration of the contract, and may be
76	76	7 adjusted as the contract approaches completion to recognize
77	77	8 better than expected performance, the ability to rely on
78	78	9 alternative safeguards, and other factors. Upon completion of
79	79	10 all contract requirements, amounts retained under this Act
80	80	11 must be paid promptly.
81	81	12 Section 15. The State Prompt Payment Act is amended by
82	82	13 changing Section 1 as follows:
83	83	14 (30 ILCS 540/1) (from Ch. 127, par. 132.401)
84	84	15 Sec. 1. This Act applies to any State official or agency
85	85	16 authorized to provide for payment from State funds, by virtue
86	86	17 of any appropriation of the General Assembly, for goods or
87	87	18 services furnished to the State. This Act does not apply to
88	88	19 retainage withheld under the State Agency Retainage Act.
89	89	20 For purposes of this Act, "goods or services furnished to
90	90	21 the State" include but are not limited to (i) covered health
91	91	22 care provided to eligible members and their covered dependents
92	92	23 in accordance with the State Employees Group Insurance Act of
93	93	24 1971, including coverage through a physician-owned health
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104	104	1 maintenance organization under Section 6.1 of that Act, (ii)
105	105	2 prevention, intervention, or treatment services and supports
106	106	3 for persons with developmental disabilities, mental health
107	107	4 services, alcohol and substance abuse services, rehabilitation
108	108	5 services, and early intervention services provided by a
109	109	6 vendor, and (iii) prevention, intervention, or treatment
110	110	7 services and supports for youth provided by a vendor by virtue
111	111	8 of a contractual grant agreement. For the purposes of items
112	112	9 (ii) and (iii), a vendor includes but is not limited to sellers
113	113	10 of goods and services, including community-based organizations
114	114	11 that are licensed to provide prevention, intervention, or
115	115	12 treatment services and supports for persons with developmental
116	116	13 disabilities, mental illness, and substance abuse problems, or
117	117	14 that provides prevention, intervention, or treatment services
118	118	15 and supports for youth.
119	119	16 For the purposes of this Act, "appropriate State official
120	120	17 or agency" is defined as the Director or Chief Executive or his
121	121	18 designee of that State agency or department or facility of
122	122	19 such agency or department. With respect to covered health care
123	123	20 provided to eligible members and their dependents in
124	124	21 accordance with the State Employees Group Insurance Act of
125	125	22 1971, "appropriate State official or agency" also includes an
126	126	23 administrator of a program of health benefits under that Act.
127	127	24 As used in this Act, "eligible member" means a member who
128	128	25 is eligible for health benefits under the State Employees
129	129	26 Group Insurance Act of 1971, and "member" and "dependent" have
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