Illinois 2025-2026 Regular Session

Illinois House Bill HB2746

Introduced
2/5/25  
Refer
2/6/25  
Refer
3/4/25  

Caption

FAIR CONTRACTING-VARIOUS

Summary

HB2746, titled the Community Partner Fair Contracting Act, makes a broad set of changes to Illinois payment, grant, and claims-processing laws. The bill would create or expand requirements for state agencies to confirm receipt of contractor invoices within 5 business days, transmit approved amounts to the Comptroller within 30 days, and allow certain outstanding liabilities and interest penalties tied to lapsed appropriations to be paid from expiring appropriations through an extended lapse period ending October 31. It also adds an exception allowing some vendors to receive payment by non-electronic means, while preserving the state’s general move toward direct deposit and electronic payment systems. The bill also revises the Prompt Payment Act, Grant Accountability and Transparency Act, and Court of Claims Act. In the grant area, it requires grant agreements to specify voucher transmission dates and whether a grant is eligible for prompt payment or advanced payment, and it limits restrictions on fringe benefits, indirect costs, and direct administrative costs in grant agreements. In the Court of Claims, it creates a faster administrative process for certain small claims, adds electronic filing and online claim-tracking features, and excludes undisputed individual claims under $2,500 arising from lapsed appropriations from Court of Claims jurisdiction so agencies may pay them directly from current-year appropriations. The bill also updates subcontractor payment rules on public construction contracts and adds reporting and confirmation timelines for claims and grant-related payments.

Impact

HB2746 would amend multiple core fiscal statutes governing how Illinois pays vendors, contractors, grantees, and claimants. It would alter the State Comptroller Act, State Finance Act, Prompt Payment Act, Grant Accountability and Transparency Act, and Court of Claims Act, primarily by tightening invoice confirmation and payment timelines, extending certain lapse-period payment authority, and creating new procedures for small contract claims and grant administration. Affected parties would include state agencies, the Comptroller, vendors, contractors, subcontractors, grantees, and claimants against the State, especially those dealing with lapsed appropriations, public construction, and state grant agreements.

Sentiment

No committee transcripts or recorded votes were provided, so there is no direct evidence of debate, support, or opposition in the available record. Based on the bill text, the measure appears designed to improve payment timeliness, transparency, and administrative efficiency for vendors and community partners, which suggests a generally pro-payment, pro-contractor, and pro-grantee policy orientation. The title and structure indicate an emphasis on fair contracting and clearer state payment practices.

Contention

The most likely points of contention are the bill’s fiscal and administrative mandates. State agencies may object to tighter invoice-confirmation and transmission deadlines, expanded reporting duties, and limits on how grant agreements can restrict indirect and administrative costs. The Court of Claims changes, especially the carve-out allowing agencies to pay certain undisputed claims under $2,500 directly from current appropriations, could raise questions about jurisdiction, oversight, and consistency in claims handling. There may also be debate over the extended lapse-period payment authority and the requirement that agencies accommodate non-electronic payment exceptions for vendors who cannot use direct deposit.

Companion Bills

No companion bills found.

Previously Filed As

IL SB1778

FAIR CONTRACTING-VARIOUS

IL AB2272

State contracting: subcontractors: prompt payment.

IL SB1223

Fairs: contracting.

IL SB2618

Airport facilities; authorize contracting with companies for financing, designing, constructing, operating or maintaining of.

IL HB1102

Contracting for preschool programs.

IL SB3607

FAIR CONTRACTING-HEALTH CARE

IL SB0243

Various tax matters.

IL SB0453

Various tax matters.

IL S1262

Construction Contracting

IL SF4201

Small business contracting requirements and requiring report to the legislature of compliance modification

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