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1 | AN ACT concerning finance.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The State Prompt Payment Act is amended by | |||||||||||||||||||||
5 | changing Section 3-2 and by adding Section 3-5 as follows:
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6 | (30 ILCS 540/3-2)
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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
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12 | agency shall pay interest to the vendor in accordance with the | |||||||||||||||||||||
13 | following:
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14 | (1) Any bill, except a bill submitted under Article V | |||||||||||||||||||||
15 | of the Illinois Public Aid Code and except as provided | |||||||||||||||||||||
16 | under paragraph (1.05) of this Section, approved for | |||||||||||||||||||||
17 | payment under this Section must be paid
or the payment | |||||||||||||||||||||
18 | issued to the payee within 60 days of receipt
of a proper | |||||||||||||||||||||
19 | bill or invoice.
If payment is not issued to the payee | |||||||||||||||||||||
20 | within this 60-day
period, an
interest penalty of 1.0% of | |||||||||||||||||||||
21 | any amount approved and unpaid shall be added
for each | |||||||||||||||||||||
22 | month or fraction thereof after the end of this 60-day | |||||||||||||||||||||
23 | period,
until final payment is made. Any bill, except a |
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1 | bill for pharmacy
or nursing facility services or goods, | ||||||
2 | and except as provided under paragraph (1.05) of this | ||||||
3 | Section, submitted under Article V of the Illinois Public | ||||||
4 | Aid Code approved for payment under this Section must be | ||||||
5 | paid
or the payment issued to the payee within 60 days | ||||||
6 | after receipt
of a proper bill or invoice, and,
if payment | ||||||
7 | is not issued to the payee within this 60-day
period, an
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8 | interest penalty of 2.0% of any amount approved and unpaid | ||||||
9 | shall be added
for each month or fraction thereof after the | ||||||
10 | end of this 60-day period,
until final payment is made. Any | ||||||
11 | bill for pharmacy or nursing facility services or
goods | ||||||
12 | submitted under Article V of the Illinois Public Aid
Code, | ||||||
13 | except as provided under paragraph (1.05) of this Section, | ||||||
14 | and approved for payment under this Section must be paid
or | ||||||
15 | the payment issued to the payee within 60 days of
receipt | ||||||
16 | of a proper bill or invoice. If payment is not
issued to | ||||||
17 | the payee within this 60-day period, an interest
penalty of | ||||||
18 | 1.0% of any amount approved and unpaid shall be
added for | ||||||
19 | each month or fraction thereof after the end of this 60-day | ||||||
20 | period, until final payment is made.
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21 | (1.05) For State fiscal year 2012 and future fiscal | ||||||
22 | years, any bill approved for payment under this Section | ||||||
23 | must be paid
or the payment issued to the payee within 90 | ||||||
24 | days of receipt
of a proper bill or invoice.
If payment is | ||||||
25 | not issued to the payee within this 90-day
period, an
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26 | interest penalty of 1.0% of any amount approved and unpaid |
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1 | shall be added
for each month, or 0.033% (one-thirtieth of | ||||||
2 | one percent) of any amount approved and unpaid for each | ||||||
3 | day, after the end of this 90-day period,
until final | ||||||
4 | payment is made.
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5 | (1.1) A State agency shall review in a timely manner | ||||||
6 | each bill or
invoice after its receipt. If the
State agency | ||||||
7 | determines that the bill or invoice contains a defect | ||||||
8 | making it
unable to process the payment request, the agency
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9 | shall notify the vendor requesting payment as soon as | ||||||
10 | possible after
discovering the
defect pursuant to rules | ||||||
11 | promulgated under Section 3-3; provided, however, that the | ||||||
12 | notice for construction related bills or invoices must be | ||||||
13 | given not later than 30 days after the bill or invoice was | ||||||
14 | first submitted. The notice shall
identify the defect and | ||||||
15 | any additional information
necessary to correct the | ||||||
16 | defect. If one or more items on a construction related bill | ||||||
17 | or invoice are disapproved, but not the entire bill or | ||||||
18 | invoice, then the portion that is not disapproved shall be | ||||||
19 | paid.
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20 | (2) Where a State official or agency is late in payment | ||||||
21 | of a
vendor's bill or invoice properly approved in | ||||||
22 | accordance with this Act, and
different late payment terms | ||||||
23 | are not reduced to writing as a contractual
agreement, the | ||||||
24 | State official or agency shall automatically pay interest
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25 | penalties required by this Section amounting to $50 or more | ||||||
26 | to the appropriate
vendor. Each agency shall be responsible |
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1 | for determining whether an interest
penalty
is
owed and
for | ||||||
2 | paying the interest to the vendor. Except as provided in | ||||||
3 | paragraph (4), an individual interest payment amounting to | ||||||
4 | $5 or less shall not be paid by the State.
Interest due to | ||||||
5 | a vendor that amounts to greater than $5 and less than $50 | ||||||
6 | shall not be paid but shall be accrued until all interest | ||||||
7 | due the vendor for all similar warrants exceeds $50, at | ||||||
8 | which time the accrued interest shall be payable and | ||||||
9 | interest will begin accruing again, except that interest | ||||||
10 | accrued as of the end of the fiscal year that does not | ||||||
11 | exceed $50 shall be payable at that time. In the event an
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12 | individual has paid a vendor for services in advance, the | ||||||
13 | provisions of this
Section shall apply until payment is | ||||||
14 | made to that individual.
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15 | (3) The provisions of Public Act 96-1501 reducing the | ||||||
16 | interest rate on pharmacy claims under Article V of the | ||||||
17 | Illinois Public Aid Code to 1.0% per month shall apply to | ||||||
18 | any pharmacy bills for services and goods under Article V | ||||||
19 | of the Illinois Public Aid Code received on or after the | ||||||
20 | date 60 days before January 25, 2011 (the effective date of | ||||||
21 | Public Act 96-1501) except as provided under paragraph | ||||||
22 | (1.05) of this Section. | ||||||
23 | (4) Interest amounting to less than $5 shall not be | ||||||
24 | paid by the State, except for claims (i) to the Department | ||||||
25 | of Healthcare and Family Services or the Department of | ||||||
26 | Human Services, (ii) pursuant to Article V of the Illinois |
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1 | Public Aid Code, the Covering ALL KIDS Health Insurance | ||||||
2 | Act, or the Children's Health Insurance Program Act, and | ||||||
3 | (iii) made (A) by pharmacies for prescriptive services or | ||||||
4 | (B) by any federally qualified health center for | ||||||
5 | prescriptive services or any other services. | ||||||
6 | (5) In order to receive payment under this Act, State | ||||||
7 | agencies shall submit all invoices to the State Comptroller | ||||||
8 | for payment within 30 days after receiving sufficient | ||||||
9 | information to create a proper bill or invoice. | ||||||
10 | (Source: P.A. 96-555, eff. 8-18-09; 96-802, eff. 1-1-10; | ||||||
11 | 96-959, eff. 7-1-10; 96-1000, eff. 7-2-10; 96-1501, eff. | ||||||
12 | 1-25-11; 96-1530, eff. 2-16-11; 97-72, eff. 7-1-11; 97-74, eff. | ||||||
13 | 6-30-11; 97-348, eff. 8-12-11; 97-813, eff. 7-13-12; 97-932, | ||||||
14 | eff. 8-10-12; 97-1142, eff. 12-28-12.)
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15 | (30 ILCS 540/3-5 new) | ||||||
16 | Sec. 3-5. Contracts; appropriations. Notwithstanding any | ||||||
17 | other provision of law to the contrary, no contracts shall be | ||||||
18 | entered into by a State agency without appropriation authority | ||||||
19 | for the term of the contract.
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20 | Section 99. Effective date. This Act takes effect upon | ||||||
21 | becoming law.
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