94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB4126

 

Introduced 10/17/2005, by Rep. Bill Mitchell - Robert W. Pritchard

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 540/3-2   from Ch. 127, par. 132.403-2

    Amends the Prompt Payment Act. Provides that any bill submitted under Article V of the Illinois Public Aid Code approved for payment must be paid or the payment issued to the payee within 30 days (now, 60 days) of receipt of a proper bill or invoice, and, if payment is not issued to the payee within this 30-day period, an interest penalty of 2.0% (now, 1.0%) of any amount approved and unpaid shall be added for each month or fraction thereof after the end of this 30-day period, until final payment is made.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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, 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
17     payee within 60 days of receipt of a proper bill or
18     invoice. If payment is not issued to the payee within this
19     60 day period, an interest penalty of 1.0% of any amount
20     approved and unpaid shall be added for each month or
21     fraction thereof after the end of this 60 day period, until
22     final payment is made. Any bill submitted under Article V
23     of the Illinois Public Aid Code approved for payment under
24     this Section must be paid or the payment issued to the
25     payee within 30 days of receipt of a proper bill or
26     invoice, and, if payment is not issued to the payee within
27     this 30-day period, an interest penalty of 2.0% of any
28     amount approved and unpaid shall be added for each month or
29     fraction thereof after the end of this 30-day period, until
30     final payment is made.
31         (1.1) A State agency shall review in a timely manner
32     each bill or invoice after its receipt. If the State agency

 

 

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1     determines that the bill or invoice contains a defect
2     making it unable to process the payment request, the agency
3     shall notify the vendor requesting payment as soon as
4     possible after discovering the defect pursuant to rules
5     promulgated under Section 3-3. The notice shall identify
6     the defect and any additional information necessary to
7     correct the defect.
8         (2) Where a State official or agency is late in payment
9     of a vendor's bill or invoice properly approved in
10     accordance with this Act, and different late payment terms
11     are not reduced to writing as a contractual agreement, the
12     State official or agency shall automatically pay interest
13     penalties required by this Section amounting to $50 or more
14     to the appropriate vendor. Each agency shall be responsible
15     for determining whether an interest penalty is owed and for
16     paying the interest to the vendor. For interest of at least
17     $5 but less than $50, the vendor must initiate a written
18     request for the interest penalty when such interest is due
19     and payable. The Department of Central Management Services
20     and the State Comptroller shall jointly promulgate rules
21     establishing the conditions under which interest of less
22     than $5 may be claimed and paid. In the event an individual
23     has paid a vendor for services in advance, the provisions
24     of this Section shall apply until payment is made to that
25     individual.
26 (Source: P.A. 92-384, eff. 7-1-02.)