Rep. Karen May

Filed: 3/15/2011

 

 


 

 


 
09700HB1354ham001LRB097 06590 PJG 52873 a

1
AMENDMENT TO HOUSE BILL 1354

2    AMENDMENT NO. ______. Amend House Bill 1354 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The State Prompt Payment Act is amended by
5changing Section 3-2 as follows:
 
6    (30 ILCS 540/3-2)
7    Sec. 3-2. Beginning July 1, 1993, in any instance where a
8State official or agency is late in payment of a vendor's bill
9or invoice for goods or services furnished to the State, as
10defined in Section 1, properly approved in accordance with
11rules promulgated under Section 3-3, the State official or
12agency shall pay interest to the vendor in accordance with the
13following:
14        (1) Any bill, except a bill submitted under Article V
15    of the Illinois Public Aid Code, approved for payment under
16    this Section must be paid or the payment issued to the

 

 

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1    payee within 60 days of receipt of a proper bill or
2    invoice. If payment is not issued to the payee within this
3    60-day 60 day period, an interest penalty shall be applied
4    to of 1.0% of any amount approved and unpaid, beginning on
5    the first day after the 60-day period and shall be added
6    for each month or fraction thereof after the end of this 60
7    day period, until final payment is made. Interest shall be
8    calculated as the average prime commercial rate plus 1.0%
9    and shall be applied to the unpaid portion of the bill at
10    the rate of 1/360th for each day the payment remains due
11    and unpaid. For purposes of this Section, "average prime
12    commercial rate" means the average of the preceding 12
13    months' prime commercial rate as published in the Wall
14    Street Journal, calculated as of each July 1. As soon as is
15    practical after each July 1, the Comptroller shall
16    calculate the average prime commercial rate and the daily
17    prompt payment rate and publish the daily rate on its
18    official Internet website. The new rate shall become
19    effective each July 1 for each new fiscal year. The
20    interest rate applicable to any late payment shall be the
21    rate in effect for the fiscal year from which the
22    appropriations supporting the original vendor payment are
23    drawn. The Comptroller may promulgate rules to implement
24    this Section. Any bill, except a bill for pharmacy or
25    nursing facility services or goods, submitted under
26    Article V of the Illinois Public Aid Code approved for

 

 

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1    payment under this Section must be paid or the payment
2    issued to the payee within 60 days after receipt of a
3    proper bill or invoice, and, if payment is not issued to
4    the payee within this 60-day period, an interest penalty of
5    2.0% of any amount approved and unpaid shall be added for
6    each month or fraction thereof after the end of this 60-day
7    period, until final payment is made. Any bill for pharmacy
8    or nursing facility services or goods submitted under
9    Article V of the Illinois Public Aid Code, approved for
10    payment under this Section must be paid or the payment
11    issued to the payee within 60 days of receipt of a proper
12    bill or invoice. If payment is not issued to the payee
13    within this 60-day 60 day period, an interest penalty of
14    1.0% of any amount approved and unpaid shall be added for
15    each month or fraction thereof after the end of this 60-day
16    60 day period, until final payment is made.
17        (1.1) A State agency shall review in a timely manner
18    each bill or invoice after its receipt. If the State agency
19    determines that the bill or invoice contains a defect
20    making it unable to process the payment request, the agency
21    shall notify the vendor requesting payment as soon as
22    possible after discovering the defect pursuant to rules
23    promulgated under Section 3-3; provided, however, that the
24    notice for construction related bills or invoices must be
25    given not later than 30 days after the bill or invoice was
26    first submitted. The notice shall identify the defect and

 

 

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1    any additional information necessary to correct the
2    defect. If one or more items on a construction related bill
3    or invoice are disapproved, but not the entire bill or
4    invoice, then the portion that is not disapproved shall be
5    paid.
6        (2) Where a State official or agency is late in payment
7    of a vendor's bill or invoice properly approved in
8    accordance with this Act, and different late payment terms
9    are not reduced to writing as a contractual agreement, the
10    State official or agency shall automatically pay interest
11    penalties required by this Section amounting to $50 or more
12    to the appropriate vendor. Each agency shall be responsible
13    for determining whether an interest penalty is owed and for
14    paying the interest to the vendor. Interest due to a vendor
15    that amounts to less than $50 shall not be paid but shall
16    be accrued until all interest due the vendor for all
17    similar warrants exceeds $50, at which time the accrued
18    interest shall be payable and interest will begin accruing
19    again, except that interest accrued as of the end of the
20    fiscal year that does not exceed $50 shall be payable at
21    that time. In the event an individual has paid a vendor for
22    services in advance, the provisions of this Section shall
23    apply until payment is made to that individual.
24        (3) (Blank). The provisions of this amendatory Act of
25    the 96th General Assembly reducing the interest rate on
26    pharmacy claims under Article V of the Illinois Public Aid

 

 

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1    Code to 1.0% per month shall apply to any pharmacy bills
2    for services and goods under Article V of the Illinois
3    Public Aid Code received on or after the date 60 days
4    before the effective date of this amendatory Act of the
5    96th General Assembly.
6(Source: P.A. 96-555, eff. 8-18-09; 96-802, eff. 1-1-10;
796-959, eff. 7-1-10; 96-1000, eff. 7-2-10; 96-1501, eff.
81-25-11; 96-1530, eff. 2-16-11; revised 2-22-11.)
 
9    Section 99. Effective date. This Act takes effect July 1,
102011.".