|
|
|||||||
| |||||||
| |||||||
| 1 | AMENDMENT TO HOUSE BILL 5260
| ||||||
| 2 | AMENDMENT NO. ______. Amend House Bill 5260 by replacing | ||||||
| 3 | everything after the enacting clause with the following:
| ||||||
| 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
| ||||||
| |||||||
| |||||||
| 1 | shall notify the vendor requesting payment as soon as | ||||||
| 2 | possible after
discovering the
defect pursuant to rules | ||||||
| 3 | promulgated under Section 3-3; provided, however, that the | ||||||
| 4 | notice for construction related bills or invoices must be | ||||||
| 5 | given not later than 30 days after the bill or invoice was | ||||||
| 6 | first submitted or not later than 30 days after the receipt | ||||||
| 7 | of the goods or services, whichever is later. The notice | ||||||
| 8 | shall
identify the defect and any additional information
| ||||||
| 9 | necessary to correct the defect.
| ||||||
| 10 | (2) Where a State official or agency is late in payment | ||||||
| 11 | of a
vendor's bill or invoice properly approved in | ||||||
| 12 | accordance with this Act, and
different late payment terms | ||||||
| 13 | are not reduced to writing as a contractual
agreement, the | ||||||
| 14 | State official or agency shall automatically pay interest
| ||||||
| 15 | penalties required by this Section amounting to $50 or more | ||||||
| 16 | to the appropriate
vendor. Each agency shall be responsible | ||||||
| 17 | for determining whether an interest
penalty
is
owed and
for | ||||||
| 18 | paying the interest to the vendor.
For interest of at least | ||||||
| 19 | $5 but less than $50, the vendor must
initiate a written | ||||||
| 20 | request for the interest penalty when such interest is due
| ||||||
| 21 | and payable. The Department of Central Management Services | ||||||
| 22 | and the State
Comptroller shall jointly promulgate rules | ||||||
| 23 | establishing the conditions under
which interest of less | ||||||
| 24 | than $5 may be claimed and paid. In the event an
individual | ||||||
| 25 | has paid a vendor for services in advance, the provisions | ||||||
| 26 | of this
Section shall apply until payment is made to that | ||||||
| 27 | individual.
| ||||||
| 28 | (Source: P.A. 92-384, eff. 7-1-02.)".
| ||||||