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Read. Follow. Verify.Illinois requires contractors to pay subcontractors within 15 days and sets administrative hearings for delayed payments
Last action · July 1, 2026: Rule 19(b) / Re-referred to Rules CommitteeSponsors: Rita Mayfield and 11 others
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What This Bill Would Do
Legislation requires state contractors to pay subcontractors and material suppliers within 10 business days or 15 calendar days of receiving payment from the State, and establishes administrative hearings and penalties for unjustified payment delays, effective July 1, 2027.
Subcontractors and material suppliers working on state public construction projects gain a formal administrative process and hearing mechanism to recover withheld funds and secure interest penalties from prime contractors who delay payments without reasonable cause.
- The General Assembly is the legislative branch of the State of Illinois, responsible for enacting state laws including public contract and procurement regulations. context
Who It Would Affect
Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.
Subcontractors
Subcontractors gain a mandatory 15-calendar-day payment window upon receipt of state funds by prime contractors, along with a formal administrative hearing process to recover delayed payments and attorney fees.
State Contractors
Prime contractors are subject to strict 15-day payment deadlines for paying lower-tier entities and face mandatory contract debarment for one to six months if found to have withheld payments without reasonable cause.
Material Suppliers
Material suppliers are entitled to prompt electronic payments within 15 calendar days and can request administrative hearings to resolve unpaid balances.
Department of Transportation
The Department of Transportation must oversee contractor compliance for construction contracts, receive written notices of refusal to pay, and maintain a searchable website database for active contracts and pay items.
Key Facts
- Contractors must pay each subcontractor and material supplier electronically or via postmarked check within 10 business days or 15 calendar days after receiving payment from the State.
- If a contractor receives partial payment, funds must be disbursed on a pro rata basis to contractors, subcontractors, and material suppliers based on earned work.
- For Department of Transportation construction contracts, contractors and subcontractors cannot diminish payments to lower-tier entities without reasonable cause and must provide written notice within 5 calendar days of receiving payment.
- Subcontractors and material suppliers owed payments without reasonable cause may file a written notice and request for an administrative hearing with the state official or agency.
Show all 10 facts
- State officials or agencies must hold a hearing convened by an administrative law judge within 15 calendar days of receiving a subcontractor's notice.
- If an administrative law judge finds a contractor failed to pay without reasonable cause, the contractor must pay the owed amount plus interest within 15 calendar days.
- Contractors failing to make full payment as ordered are barred from entering into State public construction contracts for one year.
- Contractors with two or more findings of unjustified nonpayment within a 3-calendar-year period are barred from state public construction contracts for 6 months.
- Subcontractors may petition the state agency for reasonable attorney's fees and costs incurred in prosecuting the action within 30 days of the administrative order.
- The Act takes effect July 1, 2027.
Frequently Asked Questions
When must a prime contractor pay subcontractors after receiving state funds?
What happens if a contractor withholds payment without reasonable cause?
What constitutes 'reasonable cause' for withholding payment from a subcontractor?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
Currently passed both. The next step in the legislative lifecycle is Law.
Procedural history
63 actions- Jul 1, 2026HouseCommitteeRule 19(b) / Re-referred to Rules Committee
- Jun 1, 2026HousePlaced on Calendar Order of Concurrence Senate Amendment(s) 1, 2
- Jun 1, 2026HouseArrived in House
- Jun 1, 2026SenateAdded as Alternate Co-Sponsor Sen. Lakesia Collins
- Jun 1, 2026SenateFloorThird Reading - Passed; 037-020-000
- Jun 1, 2026SenatePlaced on Calendar Order of 3rd Reading
Show 57 earlier actions
- Jun 1, 2026SenateFloorSenate Floor Amendment No. 2 Adopted; Simmons
- May 31, 2026SenateFloorRecalled to Second Reading
- May 31, 2026HouseChief Sponsor Changed to Rep. Rita Mayfield
- May 31, 2026SenateAdded as Alternate Chief Co-Sponsor Sen. Rachel Ventura
- May 31, 2026SenateAlternate Chief Sponsor Changed to Sen. Mike Simmons
- May 31, 2026SenateSponsor Removed Sen. Christopher Belt
- May 31, 2026SenateSenate Floor Amendment No. 2 Recommend Do Adopt Executive; 008-004-000
- May 31, 2026SenateSenate Floor Amendment No. 2 Assignments Refers to Executive
- May 31, 2026SenateCommitteeSenate Floor Amendment No. 2 Referred to Assignments
- May 31, 2026SenateIntroducedSenate Floor Amendment No. 2 Filed with Secretary by Sen. Mike Simmons
- May 22, 2026SenateFloorRule 2-10 Third Reading Deadline Established As May 31, 2026
- May 20, 2026SenateSponsor Removed Sen. Michael W. Halpin
- May 18, 2026SenatePlaced on Calendar Order of 3rd Reading May 19, 2026
- May 18, 2026SenateFloorSenate Floor Amendment No. 1 Adopted; Harmon
- May 18, 2026SenateFloorSecond Reading
- May 14, 2026SenateAdded as Alternate Co-Sponsor Sen. Emil Jones, III
- May 13, 2026SenateSenate Floor Amendment No. 1 Recommend Do Adopt Executive; 009-004-000
- May 13, 2026SenateSenate Floor Amendment No. 1 Assignments Refers to Executive
- May 13, 2026SenateCommitteeSenate Floor Amendment No. 1 Referred to Assignments
- May 13, 2026SenateIntroducedSenate Floor Amendment No. 1 Filed with Secretary by Sen. Don Harmon
- May 13, 2026SenatePlaced on Calendar Order of 2nd Reading May 14, 2026
- May 13, 2026SenateApproved for Consideration Assignments
- May 8, 2026SenateAdded as Alternate Chief Co-Sponsor Sen. Mattie Hunter
- May 7, 2026SenateAdded as Alternate Co-Sponsor Sen. Karina Villa
- May 7, 2026SenateAdded as Alternate Chief Co-Sponsor Sen. Michael W. Halpin
- May 6, 2026SenateAdded as Alternate Co-Sponsor Sen. Robert F. Martwick
- May 6, 2026SenateAdded as Alternate Co-Sponsor Sen. Mary Edly-Allen
- May 6, 2026SenateAdded as Alternate Chief Co-Sponsor Sen. Christopher Belt
- May 6, 2026SenateAdded as Alternate Co-Sponsor Sen. Adriane L. Johnson
- May 4, 2026SenateAdded as Alternate Co-Sponsor Sen. Javier L. Cervantes
- Apr 30, 2026SenateAdded as Alternate Co-Sponsor Sen. Mike Porfirio
- Apr 30, 2026SenateAdded as Alternate Co-Sponsor Sen. David Koehler
- Apr 28, 2026SenateAdded as Alternate Co-Sponsor Sen. Rachel Ventura
- Apr 21, 2026SenateCommitteeReferred to Assignments
- Apr 21, 2026SenateIntroducedFirst Reading
- Apr 21, 2026SenateChief Senate Sponsor Sen. Don Harmon
- Apr 21, 2026SenateIntroducedPlaced on Calendar Order of First Reading
- Apr 21, 2026SenateArrive in Senate
- Apr 17, 2026HouseFloorThird Reading - Short Debate - Passed 100-000-000
- Apr 17, 2026HousePlaced on Calendar Order of 3rd Reading - Short Debate
- Apr 17, 2026HouseFloorHouse Floor Amendment No. 1 Adopted
- Apr 16, 2026HouseCommitteeHouse Floor Amendment No. 1 Recommends Be Adopted Rules Committee; 005-000-000
- Apr 15, 2026HouseCommitteeHouse Floor Amendment No. 1 Referred to Rules Committee
- Apr 15, 2026HouseIntroducedHouse Floor Amendment No. 1 Filed with Clerk by Rep. Lindsey LaPointe
- Apr 15, 2026HouseChief Sponsor Changed to Rep. Lindsey LaPointe
- Apr 15, 2026HousePlaced on Calendar 2nd Reading - Short Debate
- Apr 15, 2026HouseApproved for Consideration Rules Committee; 005-000-000
- May 31, 2025HouseCommitteeRule 19(a) / Re-referred to Rules Committee
- Apr 11, 2025HouseFloorThird Reading Deadline Extended-Rule May 31, 2025
- Mar 27, 2025HouseFloorHeld on Calendar Order of Second Reading - Short Debate **
- Mar 27, 2025HouseFloorSecond Reading - Short Debate
- Mar 12, 2025HousePlaced on Calendar 2nd Reading - Short Debate **
- Mar 12, 2025HouseCommitteeDo Pass / Short Debate Executive Committee; 012-000-000
- Mar 4, 2025HouseCommitteeAssigned to Executive Committee
- Jan 9, 2025HouseCommitteeReferred to Rules Committee
- Jan 9, 2025HouseIntroducedFirst Reading
- Dec 17, 2024HouseIntroducedPrefiled with Clerk by Rep. Emanuel "Chris" Welch
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
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Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Stricter Administrative Enforcement for Public Works
The bill shifts enforcement of prompt payment violations from civil litigation alone to mandatory administrative hearings and contract debarment.
Connected Entities
Sources
ftp.ilga.gov
Analysis Score
0–100- Significance75How much this matters to a regular citizen
- Controversy25Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz20Current news / social attention level
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