On January 29th, HACIA, as the lead advocate in a statewide coalition, traveled to Springfield, Illinois, to champion the passage of HB1224 (Rep. Will Davis) and SB74 (Sen. Willie Preston). These bills are critical in reducing retention rates on contracts with state agencies, including the Illinois Capital Development Board and State Universities, ensuring that small and minority-owned businesses receive timely payments and have greater financial stability.
Meeting with Senate President Don Harmon The day began with a pivotal meeting at 1:45 PM with Senate President Don Harmon. HACIA members, including Ivan Solis, Jeannette Chavarria-Torres, Harrison W. Staley, CCM, Veronica Ramirez, Pedro Ramierz Jr., Luis Vazquez, and Marco Romero, shared firsthand experiences of how existing retention practices have hindered their businesses. These retention policies limit cash flow, creating unnecessary financial burdens on small contractors who are vital to Illinois’ economic landscape. Partner organizations such as the Federation of Women Contractors (FWC), Black Contractors Owners and Executives (BCOE), Chicagoland AGC, and the Illinois Hispanic Chamber of Commerce also expressed their support, reinforcing the broad coalition backing these reforms.
Press Conference and Public Support Following the meeting, HACIA participated in a press conference hosted by Senator Willie Preston, highlighting the urgent need for HB1224 and SB74. Senator Preston reaffirmed his commitment to supporting policies that eliminate financial obstacles for small businesses, ensuring they receive equitable treatment in state contracting. His full statement is available on his official site: Senator Preston’s Press Release.
Networking and Continued Advocacy After the press conference, HACIA and our partners took the opportunity to continue discussions with additional elected officials. These crucial conversations helped strengthen legislative support and ensured that the concerns of small and diverse contractors remained at the forefront. The networking efforts underscored the importance of collective advocacy in pushing for policies that promote fairness and economic opportunity.
About HB1224/SB74 , also known as the State Agency Retainage Act, addresses the issue of unfair contract retention practices that disproportionately affect small, minority- and women-owned businesses. The bill ensures that retention is only applied when necessary and within fair limits. Under the proposed legislation:
- A State agency may retain a percentage of a payment if satisfactory progress has not been made by a contractor or subcontractor.
- Retainage cannot exceed 10% of the approved estimated amount until the contract is 50% completed.
- After 50% completion, retainage is capped at 5% for the remainder of the contract.
- Retainage must be paid promptly upon completion of contract requirements.
- The bill also amends the State Prompt Payment Act to clarify that it does not apply to retainage withheld under this new law.
By enforcing fair retention policies, HB1224 and SB74 create a more sustainable and equitable construction industry, allowing businesses to operate without unnecessary financial strain.
Watch the Recap
For a closer look at our day in Springfield and the powerful voices advocating for change, watch our recap video below.
Contact Your Legislators Now, we need your support. We urge all industry leaders, business owners, and advocates to reach out to their local state legislators and express their support for HB1224 and SB74. Visit Find My Legislator to identify your representatives and make your voice heard. Alternatively, you can also use this link to generate your letter.
Together, we can drive meaningful change and ensure a fairer, more inclusive construction industry in Illinois. HACIA is committed to this fight, and we won’t stop until these critical reforms become law.