HB1076 - Public Construction Bond Act Amendment

• Allows builders and developers to satisfy cash bond requirements using irrevocable letters of credit, surety bonds, or letters of commitment from financial institutions instead of cash, provided the security equals or exceeds 110% of the bid amount.

• Counties and municipalities must approve any surety or insurance company authorized by the Illinois Department of Insurance as "good and sufficient" (except in municipalities/counties with populations of 1,000,000 or more).

• Requires counties and municipalities to register bonds under project address and permit number, provide receipts to builders/developers, and maintain separate accounts for cash bonds.

• Mandates refund of cash bonds or release of letters of credit/surety bonds within 60 days after project completion notification, with 1% monthly interest charged on bonds not refunded after 60 days.

• Deems all bonds to contain undertakings allowing material suppliers and laborers (including subcontractors) the right to sue on bonds in the same manner as provided under Section 2 of the Act.