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HB 3631

CAP DEV BD-SUBS

104th Regular Session Introduced by Kam Buckner

HB 3631 allows the Capital Development Board to pay a subcontractor directly if the prime contractor hasn’t paid within 30 days after CDB payment, with steps to verify and recoup c

Rule 19(a) / Re-referred to Rules Committee
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Bill Summary · HB 3631

Summary — HB 3631 (CAP DEV BD‑SUBS)

Status: Introduced Feb 18, 2025; passed the House (May 16, 2025); most recently re‑referred to Rules Committee (Rule 19(a)). Primary sponsor: Rep. Kam Buckner. Companion: SB 1635.

Purpose / Intent

HB 3631 authorizes the Illinois Capital Development Board (CDB) to make direct payments to subcontractors on State‑funded construction projects in specified circumstances. The bill is intended to reduce payment delays to subcontractors, protect subcontractor cash flow, and help keep State construction projects on schedule by creating an alternative enforcement mechanism when prime contractors fail to pay.

Key provisions

  • Adds Section 21 to the Capital Development Board Act (20 ILCS 3105/21 new) and Section 12 to the State Prompt Payment Act (30 ILCS 540/12 new).
  • Conditions under which CDB may pay a subcontractor directly:
    • The subcontractor submits an affidavit and supporting documentation verifying the amount due, including the subcontract agreement and evidence of work completion (invoices, progress reports, certifications).
    • The prime contractor has not paid the subcontractor within 30 days after the prime contractor receives payment from the CDB.
    • The subcontractor has provided written notice of non‑payment to both the CDB and the prime contractor and has allowed the prime contractor a 10‑day response period.
  • Dispute process:
    • Upon a valid claim, CDB must notify the prime contractor and allow the prime contractor to dispute the claim within 10 business days.
    • If no dispute or acceptable justification is provided (or if the Board deems the justification invalid), CDB shall remit payment directly to the subcontractor for the amount verified as due.
  • Recovery and penalties:
    • Any payment CDB makes directly to a subcontractor will be deducted from future payments owed to the prime contractor.
    • Primes that fail to pay subcontractors may face penalties, potentially including a 10% withholding on future payments and suspension or disqualification from bidding on State contracts for up to 3 years.
  • Rulemaking: CDB must adopt rules governing claim submission, documentation verification, and dispute resolution.
  • State Prompt Payment Act: explicitly extends direct‑payment claim rights to subcontractors and makes subcontractor payments subject to interest penalties for late payments under that Act.

Who is affected

  • Primary: subcontractors performing work on State‑funded projects managed by the CDB (improved remedies and potential access to direct payment).
  • Secondary: prime contractors on CDB projects (exposure to direct payment to subs, deductions, and possible penalties/suspension).
  • Administrative: Capital Development Board (new responsibilities for intake, verification, payment, and rulemaking).
  • Projects/State: potential for smoother project cash flow and fewer delays; possible administrative costs to the State.

Potential impacts and considerations

  • Benefits: improves subcontractor protections and cash flow; provides an enforcement mechanism when primes do not pass through funds.
  • Risks/administration: increases CDB’s administrative workload (document review, dispute adjudication); could shift short‑term cash risk onto primes; may prompt disputes over verification of work and amounts owed.
  • Legal clarity: some language in the introduced draft contains minor editorial/formatting errors around dispute/deeming language; rulemaking and potential technical amendments may be needed to clarify procedures.

Next steps / procedural notes

  • Passed the House May 16, 2025; received by the Senate May 19, 2025 and referred to committee (status shows Rule 19(a)/re‑referred to Rules Committee). Further Senate committee consideration and possible amendments would follow.

Compiled from official sources — confirm details with the bill’s official record.

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