|
|
|
|
SB1472 Enrolled |
|
LRB096 09376 JDS 19533 b |
|
|
| 1 |
| AN ACT concerning finance.
|
| 2 |
| Be it enacted by the People of the State of Illinois,
|
| 3 |
| represented in the General Assembly:
|
| 4 |
| Section 5. The State Prompt Payment Act is amended by |
| 5 |
| changing Section 3-2 as follows:
|
| 6 |
| (30 ILCS 540/3-2) (from Ch. 127, par. 132.403-2)
|
| 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 approved for payment under this Section |
| 15 |
| must be paid
or the payment issued to the payee within 60 |
| 16 |
| days of receipt
of a proper bill or invoice.
If payment is |
| 17 |
| not issued to the payee within this 60 day
period, an
|
| 18 |
| interest penalty of 1.0% of any amount approved and unpaid |
| 19 |
| shall be added
for each month or fraction thereof after the |
| 20 |
| end of this 60 day period,
until final payment is made.
|
| 21 |
| (1.1) A State agency shall review in a timely manner |
| 22 |
| each bill or
invoice after its receipt. If the
State agency |
| 23 |
| determines that the bill or invoice contains a defect |
|
|
|
SB1472 Enrolled |
- 2 - |
LRB096 09376 JDS 19533 b |
|
|
| 1 |
| making it
unable to process the payment request, the agency
|
| 2 |
| shall notify the vendor requesting payment as soon as |
| 3 |
| possible after
discovering the
defect pursuant to rules |
| 4 |
| promulgated under Section 3-3; provided, however, that the |
| 5 |
| notice for construction related bills or invoices must be |
| 6 |
| given not later than 30 days after the bill or invoice was |
| 7 |
| first submitted. The notice shall
identify the defect and |
| 8 |
| any additional information
necessary to correct the |
| 9 |
| defect. If one or more items on a construction related bill |
| 10 |
| or invoice are disapproved, but not the entire bill or |
| 11 |
| invoice, then the portion that is not disapproved shall be |
| 12 |
| paid.
|
| 13 |
| (2) Where a State official or agency is late in payment |
| 14 |
| of a
vendor's bill or invoice properly approved in |
| 15 |
| accordance with this Act, and
different late payment terms |
| 16 |
| are not reduced to writing as a contractual
agreement, the |
| 17 |
| State official or agency shall automatically pay interest
|
| 18 |
| penalties required by this Section amounting to $50 or more |
| 19 |
| to the appropriate
vendor. Each agency shall be responsible |
| 20 |
| for determining whether an interest
penalty
is
owed and
for |
| 21 |
| paying the interest to the vendor.
For interest of at least |
| 22 |
| $5 but less than $50, the vendor must
initiate a written |
| 23 |
| request for the interest penalty when such interest is due
|
| 24 |
| and payable. The Department of Central Management Services |
| 25 |
| and the State
Comptroller shall jointly promulgate rules |
| 26 |
| establishing the conditions under
which interest of less |