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HB 3185

PROMPT PAYMENT-CAP DEVELOP BD

104th Regular Session Introduced by Mike Crawford and 5 co-sponsors

HB 3185 requires DOT and CDB projects to pay subcontractors within 10 business days (15 calendar days) with 2% interest on late payments and adds admin enforcement and debarment fo

Rule 19(a) / Re-referred to Rules Committee
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Bill Summary · HB 3185

HB 3185 — Summary (Prompt Payment; Capital Development Board)

Bill: HB 3185
Statute amended: State Prompt Payment Act (30 ILCS 540/7; from Ch. 127, par. 132.407)
Introduced: Feb 18, 2025 | Signed by Governor: Jun 20, 2025 | Effective: Sep 1, 2025

Main purpose

HB 3185 strengthens and clarifies prompt-payment rules for public construction contracts by extending certain protections that previously applied to the Department of Transportation (DOT) to projects administered by the Capital Development Board (CDB). It sets deadlines, payment methods, notice requirements, interest on late payments, and administrative enforcement for contractors that withhold or delay payments to subcontractors and material suppliers.

Key provisions

  • Expansion of coverage: Adds the Capital Development Board (CDB) alongside the Department of Transportation (DOT) to the subsection governing construction contracts.
  • Prompt payment timing and method:
    • When a contractor receives payment from the State, the contractor must pay each subcontractor and material supplier within 10 business days or 15 calendar days, whichever is earlier.
    • Payments should be made electronically where available; if by printed check, the check must be postmarked within the same timeframe.
    • Lower-tier subcontractors and suppliers must be paid by their immediate payors on the same timing/terms.
  • Prohibition on unilateral offsets: For DOT and CDB construction contracts, a contractor, subcontractor, or material supplier (at any tier) may not offset, decrease, or diminish payments due to its subcontractors or suppliers without “reasonable cause.”
  • Notice requirement for refusal: If a contractor refuses to make prompt payment (in whole or part), it must provide written notice within 5 calendar days to the subcontractor/supplier and the public owner. The notice must identify the public contract/subcontract/material purchase agreement, state the detailed reason for withholding, the amount withheld, and remedial actions required.
  • Interest on late payments: If the contractor, without reasonable cause, fails to pay within the required time, interest accrues at 2% per 10-business-day or 15-calendar-day period (as structured in the statute) until payment is made.
  • Administrative enforcement:
    • A subcontractor or supplier may file a sworn written notice and request for an administrative hearing with the State official/agency responsible for the contract, identifying the amount owed and contractor’s failure to pay.
    • The agency must convene a hearing (with procedural protections) and an administrative law judge can order payment plus interest within 15 calendar days of the order.
    • Failure to comply with an order can result in a one-year bar on the contractor entering State public construction contracts; repeated violations within a 3-year period trigger longer or additional debarment (statute text indicates escalating penalties).

Who is affected

  • Primary: prime contractors on DOT and CDB public construction contracts.
  • Secondary: subcontractors and material suppliers at all tiers working on DOT and CDB projects.
  • State agencies: DOT, Capital Development Board, contracting agencies, and the Comptroller (for voucher/payment processes).
  • May also affect sureties, project owners, and construction finance practices.

Effective date and procedural history

  • Enacted: Signed by the Governor on Jun 20, 2025.
  • Effective: September 1, 2025.
  • Legislative history: Passed both chambers, reported/enrolled May–June 2025.

Practical impact

HB 3185 tightens cash-flow protections for subcontractors/suppliers on DOT and CDB projects by imposing strict short deadlines for passthrough payments, formalizing notice and interest penalties for nonpayment, and creating an administrative remedy with potential debarment for recalcitrant contractors. Contractors will need to adjust payment procedures and documentation to meet short timelines and to substantiate any “reasonable cause” for withholding.

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

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