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.)