IL HB3751

Amends the Public Construction Bond Act to allow counties and municipalities to require cash bonds, irrevocable letters of credit, surety bonds, or letters of commitment from builders and developers (previously prohibited when alternative instruments were filed).

Counties and municipalities must register bonds by project address and construction permit number, provide builders/developers a receipt, and maintain a separate account for all cash bonds received.

Requires counties and municipalities to refund cash bonds or release letters of credit within 60 days after a builder notifies them that the project improvement is complete, with interest accruing at 1% per month after 60 days if not refunded.

Eliminates the preemption of home rule powers by removing language that prohibited home rule counties and municipalities from requiring cash bonds in a manner inconsistent with state law.

Takes effect immediately upon becoming law.