IL HB2722

Requires surety bonds for public construction contracts exceeding $50,000, with surety companies rated at least A- by major rating agencies (A.M. Best, Moody's, or Standard & Poor's)

Expands definition of covered items in bonds to include "apparatus, fixtures, and machinery" in addition to materials and labor, and explicitly includes rented items and tools used on construction sites

Requires sureties to respond within 15 working days to default notices and take action either by completing the work or paying costs to complete it, with a maximum 30-day response period unless otherwise agreed

Allows claimants (workers, material suppliers, subcontractors) to sue on bonds within one year after final work or material delivery, but requires verified notice filed within 180 days and notice to contractor within 10 days

Permits political subdivisions to accept non-diminishing irrevocable bank letters of credit in lieu of surety bonds for contracts under $100,000 when using non-motor fuel tax and non-federal funds