94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB4755

 

Introduced 01/17/06, by Rep. Donald L. Moffitt

 

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

    Amends the State Prompt Payment Act. Provides that State agencies are prohibited from delaying the review of bills or the submission of bills to the Comptroller unless a defect in the bill is identified. Effective immediately.


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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 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
24     making it unable to process the payment request, the agency
25     shall notify the vendor requesting payment as soon as
26     possible after discovering the defect pursuant to rules
27     promulgated under Section 3-3. The notice shall identify
28     the defect and any additional information necessary to
29     correct the defect. State agencies are prohibited from
30     delaying the review of bills or the submission of bills to
31     the Comptroller unless a defect in the bill is identified.
32         (2) Where a State official or agency is late in payment

 

 

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1     of a vendor's bill or invoice properly approved in
2     accordance with this Act, and different late payment terms
3     are not reduced to writing as a contractual agreement, the
4     State official or agency shall automatically pay interest
5     penalties required by this Section amounting to $50 or more
6     to the appropriate vendor. Each agency shall be responsible
7     for determining whether an interest penalty is owed and for
8     paying the interest to the vendor. For interest of at least
9     $5 but less than $50, the vendor must initiate a written
10     request for the interest penalty when such interest is due
11     and payable. The Department of Central Management Services
12     and the State Comptroller shall jointly promulgate rules
13     establishing the conditions under which interest of less
14     than $5 may be claimed and paid. In the event an individual
15     has paid a vendor for services in advance, the provisions
16     of this Section shall apply until payment is made to that
17     individual.
18 (Source: P.A. 92-384, eff. 7-1-02.)
 
19     Section 99. Effective date. This Act takes effect upon
20 becoming law.