2006: Prompt Pay Legislation

AHEAD led the fight to clarify and modestly strengthen state and local prompt pay statues in Illinois. In 2006, Public Act 94-972 was signed into law. The legislation does the following:

• Amends the State Government Prompt Pay Act (“State Act”) and the Local Prompt Pay Act (“Local Act”) to provide: (i) when one or more items on a construction related bill or invoice are disapproved, but not the entire bill, then the portion that is not disapproved shall be paid; and (ii) when statutory interest payments are made, they shall be disbursed to subcontractors and material suppliers on a pro rata basis.
• Amends the State Act in the sub-section requiring “timely review” by the state of invoices and notice to vendors of invoice defects that inhibit processing of payment requests. Consistent with state regulations that implement the State Act, the legislation specifies that any defect notice must be given not later than 30 days after the invoice was first submitted.

AHEAD and its allies earned unanimous support in the General Assembly for these improvements to the State and Local Prompt Pay Acts. Our sincere thanks to our legislative sponsors: Representatives Jim Durkin, Joe Lyons, John Bradley, Annazette Collins, Skip Saviano, Jim Sacia, Patricia Bellock, and Don Moffitt and to Senators Terry Link and Pamela Althoff.