IL HB4769

Amends the Public Construction Bond Act to require surety companies on public construction bonds to be licensed by the Department of Insurance and maintain a financial strength rating of at least A- from A.M. Best Company, Inc., Moody's Investors Service, Standard & Poor's Corporation, or similar rating agency.

Applies to public construction contracts costing over $50,000 for the State or any political subdivision.

Establishes surety response requirements for contract defaults, requiring sureties to respond within 15 working days of notice and take action within 30 working days, either by completing the work or paying the reasonable completion costs up to the bond's penal sum.

Allows political subdivisions to accept non-diminishing irrevocable bank letters of credit in lieu of surety bonds for contracts under $100,000 when using non-federal funds.

Takes effect upon becoming law.