Full Text of HB1354 97th General Assembly
HB1354ham001 97TH GENERAL ASSEMBLY | Rep. Karen May Filed: 3/15/2011
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| 1 | | AMENDMENT TO HOUSE BILL 1354
| 2 | | AMENDMENT NO. ______. Amend House Bill 1354 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The State Prompt Payment Act is amended by | 5 | | changing Section 3-2 as follows:
| 6 | | (30 ILCS 540/3-2)
| 7 | | Sec. 3-2. Beginning July 1, 1993, in any instance where a | 8 | | State official or
agency is late in payment of a vendor's bill | 9 | | or invoice for goods or services
furnished to the State, as | 10 | | defined in Section 1, properly approved in
accordance with | 11 | | rules promulgated under Section 3-3, the State official or
| 12 | | agency shall pay interest to the vendor in accordance with the | 13 | | following:
| 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; | 7 | | 96-959, eff. 7-1-10; 96-1000, eff. 7-2-10; 96-1501, eff. | 8 | | 1-25-11; 96-1530, eff. 2-16-11; revised 2-22-11.)
| 9 | | Section 99. Effective date. This Act takes effect July 1, | 10 | | 2011.".
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