Public Act 096-0802
 		





HB0237 Enrolled
LRB096 03175 RCE 13192 b






    AN ACT concerning finance.

 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:


 
    Section 5. The State Prompt Payment Act is amended  by 
changing Sections 1 and 3-2 as follows:

 



    (30 ILCS 540/1)  (from Ch. 127, par. 132.401)



    Sec. 1. 
This Act applies to any State official or agency 
authorized to
provide for payment from State funds, by virtue 
of any appropriation of the
General Assembly, for goods or 
services furnished to the State.

    For purposes of this Act, "goods or
services furnished to 
the State" include but are not limited to (i) covered health

care provided to eligible members and their covered dependents 
in accordance
with the State Employees Group Insurance Act of 
1971, including coverage
through a physician-owned health 
maintenance organization under Section 6.1 of
that Act, and 
(ii) prevention, intervention, or treatment services and 
supports for persons with developmental disabilities, mental 
health services, alcohol and substance abuse services, 
rehabilitation services, and early intervention services 
provided by a vendor. For the purposes of item (ii), a vendor 
includes but is not limited to sellers of goods and services, 
including community-based organizations that are licensed to 
provide prevention, intervention, or treatment services and 
supports for persons with developmental disabilities, mental 
illness, and substance abuse problems. 

    For the purposes of this Act, "appropriate State official 
or agency" is
defined as the Director or Chief Executive or his 
designee of that State
agency or department or facility of such 
agency or department.
With respect to covered health care 
provided to eligible members and
their dependents in accordance 
with the State Employees Group Insurance Act
of 1971, 
"appropriate State official or agency" also includes an

administrator of a program of health benefits under that Act.

    As used in this Act, "eligible member" means a member who 
is eligible for
health benefits under the State Employees Group 
Insurance Act of 1971, and
"member" and "dependent" have the 
meanings ascribed to those terms in that Act.

    As used in this Act, "a proper bill or invoice" means a 
bill or invoice
that
includes the
information necessary for 
processing the payment as may be specified by a State
agency 
and in rules adopted in accordance with this Act.

(Source: P.A. 91-266, eff. 7-23-99; 92-384, eff. 7-1-02.)

 


    (30 ILCS 540/3-2)  (from Ch. 127, par. 132.403-2)


    Sec. 3-2. Beginning July 1, 1993, in any instance where a 
State official or
agency is late in payment of a vendor's bill 
or invoice for goods or services
furnished to the State, as 
defined in Section 1, properly approved in
accordance with 
rules promulgated under Section 3-3, the State official or

agency shall pay interest to the vendor in accordance with the 
following:


        (1) Any bill, except a bill submitted under Article V 
    of the Illinois Public Aid Code, approved for payment under 
    this Section must be paid
or the payment issued to the 
    payee within 60 days of receipt
of a proper bill or 
    invoice.
If payment is not issued to the payee within this 
    60 day
period, an
interest penalty of 1.0% of any amount 
    approved and unpaid shall be added
for each month or 
    fraction thereof after the end of this 60 day period,
until 
    final payment is made. Any bill submitted under Article V 
    of the Illinois Public Aid Code approved for payment under 
    this Section must be paid
or the payment issued to the 
    payee within 60 days after receipt
of a proper bill or 
    invoice, and,
if payment is not issued to the payee within 
    this 60-day
period, an
interest penalty of 2.0% of any 
    amount approved and unpaid shall be added
for each month or 
    fraction thereof after the end of this 60-day period,
until 
    final payment is made.


        (1.1) A State agency shall review in a timely manner 
    each bill or
invoice after its receipt.  If the
State agency 
    determines that the bill or invoice contains a defect 
    making it
unable to process the payment request, the agency

    shall notify the vendor requesting payment as soon as 
    possible after
discovering the
defect pursuant to rules 
    promulgated under Section 3-3; provided, however, that the 
    notice for construction related bills or invoices must be 
    given not later than 30 days after the bill or invoice was 
    first submitted.  The notice shall
identify the defect and 
    any additional information
necessary to correct the 
    defect. If one or more items on a construction related bill 
    or invoice are disapproved, but not the entire bill or 
    invoice, then the portion that is not disapproved shall be 
    paid.



        (2) Where a State official or agency is late in payment 
    of a
vendor's bill or invoice properly approved in 
    accordance with this Act, and
different late payment terms 
    are not reduced to writing as a contractual
agreement, the 
    State official or agency shall automatically pay interest

    penalties required by this Section amounting to $50 or more 
    to the appropriate
vendor.  Each agency shall be responsible 
    for determining whether an interest
penalty
is
owed and
for 
    paying the interest to the vendor.
For interest of at least 
    $5 but less than $50, the vendor must
initiate a written 
    request for the interest penalty when such interest is due

    and payable.  The Department of Central Management Services 
    and the State
Comptroller shall jointly promulgate rules 
    establishing the conditions under
which interest of less 
    than $5 may be claimed and paid.  In the event an
individual 
    has paid a vendor for services in advance, the provisions 
    of this
Section shall apply until payment is made to that 
    individual.

(Source: P.A. 94-972, eff. 7-1-07.)