Rep. Frank J. Mautino

Filed: 3/8/2011

 

 


 

 


 
09700HB3449ham001LRB097 10811 RLJ 52394 a

1
AMENDMENT TO HOUSE BILL 3449

2    AMENDMENT NO. ______. Amend House Bill 3449 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The State Comptroller Act is amended by
5changing Section 9.03 as follows:
 
6    (15 ILCS 405/9.03)  (from Ch. 15, par. 209.03)
7    Sec. 9.03. Direct deposit of State payments.
8    (a) The Comptroller, with the approval of the State
9Treasurer, may provide by rule or regulation for the direct
10deposit of any payment lawfully payable from the State Treasury
11and in accordance with federal banking regulations including
12but not limited to payments to (i) persons paid from personal
13services, (ii) persons receiving benefit payments from the
14Comptroller him under the State pension systems, (iii)
15individuals who receive assistance under Articles III, IV, and
16VI of the Illinois Public Aid Code, (iv) providers of services

 

 

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1under the Mental Health and Developmental Disabilities
2Administrative Act, (v) providers of community-based mental
3health services, and (vi) providers of services under programs
4administered by the State Board of Education, in the accounts
5of those persons or entities maintained at a bank, savings and
6loan association, or credit union, where authorized by the
7payee. The Comptroller also may deposit public aid payments for
8individuals who receive assistance under Articles III, IV, VI,
9and X of the Illinois Public Aid Code directly into an
10electronic benefits transfer account in a financial
11institution approved by the State Treasurer as prescribed by
12the Illinois Department of Human Services and in accordance
13with the rules and regulations of that Department and the rules
14and regulation adopted by the Comptroller and the State
15Treasurer. The Comptroller, with the approval of the State
16Treasurer, may provide by rule for the electronic direct
17deposit of payments to public agencies and any other payee of
18the State. The electronic direct deposits may be made to the
19designated account in those financial institutions specified
20in this Section for the direct deposit of payments. Within 6
21months after the effective date of this amendatory Act of 1994,
22the Comptroller shall establish a pilot program for the
23electronic direct deposit of payments to local school
24districts, municipalities, and units of local government. The
25payments may be made without the use of the voucher-warrant
26system, provided that documentation of approval by the

 

 

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1Treasurer of each group of payments made by direct deposit
2shall be retained by the Comptroller. The form and method of
3the Treasurer's approval shall be established by the rules or
4regulations adopted by the Comptroller under this Section.
5    (b) All State payments for an employee's payroll or an
6employee's expense reimbursement must be made through direct
7deposit. It is the responsibility of the paying State agency to
8ensure compliance with this mandate. If a State agency pays an
9employee's payroll or an employee's expense reimbursement
10without using direct deposit, the Comptroller may charge that
11employee a processing fee of $2.50 per paper warrant. The
12amount collected from the fee shall be deposited into the
13Comptroller's Administrative Fund.
14    (c) A State employee or vendor may file a hardship petition
15with the Office of the Comptroller requesting an exemption from
16the direct deposit mandate under this Section. A hardship
17petition shall be made available for download on the
18Comptroller's official Internet website.
19    (d) All State payments to a vendor that exceed the
20allowable limit of paper warrants in a fiscal year, by the same
21agency, must be made through direct deposit. It is the
22responsibility of the paying State agency to ensure compliance
23with this mandate. If a State agency pays a vendor more times
24than the allowable limit in a single fiscal year without using
25direct deposit, the Comptroller may charge the vendor a
26processing fee of $2.50 per paper warrant. The amount collected

 

 

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1from the processing fee shall be deposited into the
2Comptroller's Administrative Fund. The Office of Comptroller
3shall define "vendor" and "allowable limit" in the Statewide
4Accounting Management Manual System (SAMS) manual and shall
5provide such notice to all State agencies.
6    (e) Notwithstanding any provision of law to the contrary,
7the direct deposit of State payments under this Section for an
8employee's payroll, an employee's expense reimbursement, or a
9State vendor's payment does not authorize the State to
10automatically withdraw funds from those accounts.
11(Source: P.A. 88-641, eff. 9-9-94; 88-643, eff. 1-1-95; 89-235,
12eff. 8-4-95; 89-507, eff. 7-1-97.)
 
13    Section 10. The State Prompt Payment Act is amended by
14changing Section 3-2 as follows:
 
15    (30 ILCS 540/3-2)
16    Sec. 3-2. Beginning July 1, 1993, in any instance where a
17State official or agency is late in payment of a vendor's bill
18or invoice for goods or services furnished to the State, as
19defined in Section 1, properly approved in accordance with
20rules promulgated under Section 3-3, the State official or
21agency shall pay interest to the vendor in accordance with the
22following:
23        (1) Any bill, except a bill submitted under Article V
24    of the Illinois Public Aid Code, approved for payment under

 

 

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1    this Section must be paid or the payment issued to the
2    payee within 60 days of receipt of a proper bill or
3    invoice. If payment is not issued to the payee within this
4    60-day 60 day period, an interest penalty of 1.0% of any
5    amount approved and unpaid shall be added for each month or
6    fraction thereof after the end of this 60-day 60 day
7    period, until final payment is made. Any bill, except a
8    bill for pharmacy or nursing facility services or goods,
9    submitted under Article V of the Illinois Public Aid Code
10    approved for payment under this Section must be paid or the
11    payment issued to the payee within 60 days after receipt of
12    a proper bill or invoice, and, if payment is not issued to
13    the payee within this 60-day period, an interest penalty of
14    2.0% of any amount approved and unpaid shall be added for
15    each month or fraction thereof after the end of this 60-day
16    period, until final payment is made. Any bill for pharmacy
17    or nursing facility services or goods submitted under
18    Article V of the Illinois Public Aid Code and , approved for
19    payment under this Section must be paid or the payment
20    issued to the payee within 60 days of receipt of a proper
21    bill or invoice. If payment is not issued to the payee
22    within this 60-day 60 day period, an interest penalty of
23    1.0% of any amount approved and unpaid shall be added for
24    each month or fraction thereof after the end of this 60-day
25    60 day period, until final payment is made.
26        (1.1) A State agency shall review in a timely manner

 

 

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1    each bill or invoice after its receipt. If the State agency
2    determines that the bill or invoice contains a defect
3    making it unable to process the payment request, the agency
4    shall notify the vendor requesting payment as soon as
5    possible after discovering the defect pursuant to rules
6    promulgated under Section 3-3; provided, however, that the
7    notice for construction related bills or invoices must be
8    given not later than 30 days after the bill or invoice was
9    first submitted. The notice shall identify the defect and
10    any additional information necessary to correct the
11    defect. If one or more items on a construction related bill
12    or invoice are disapproved, but not the entire bill or
13    invoice, then the portion that is not disapproved shall be
14    paid.
15        (2) Where a State official or agency is late in payment
16    of a vendor's bill or invoice properly approved in
17    accordance with this Act, and different late payment terms
18    are not reduced to writing as a contractual agreement, the
19    State official or agency shall automatically pay interest
20    penalties required by this Section amounting to $50 or more
21    to the appropriate vendor. Each agency shall be responsible
22    for determining whether an interest penalty is owed and for
23    paying the interest to the vendor. Except as provided in
24    paragraph (4), an individual interest payment amounting to
25    $5 or less shall not be paid by the State. Interest due to
26    a vendor that amounts to greater than $5 and less than $50

 

 

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1    shall not be paid but shall be accrued until all interest
2    due the vendor for all similar warrants exceeds $50, at
3    which time the accrued interest shall be payable and
4    interest will begin accruing again, except that interest
5    accrued as of the end of the fiscal year that does not
6    exceed $50 shall be payable at that time. In the event an
7    individual has paid a vendor for services in advance, the
8    provisions of this Section shall apply until payment is
9    made to that individual.
10        (3) The provisions of Public Act 96-1501 this
11    amendatory Act of the 96th General Assembly reducing the
12    interest rate on pharmacy claims under Article V of the
13    Illinois Public Aid Code to 1.0% per month shall apply to
14    any pharmacy bills for services and goods under Article V
15    of the Illinois Public Aid Code received on or after the
16    date 60 days before January 25, 2011 (the effective date of
17    Public Act 96-1501) this amendatory Act of the 96th General
18    Assembly.
19        (4) Interest amounting to less than $5 shall not be
20    paid by the State, except for claims for prescriptive
21    services submitted pursuant to Article V of the Illinois
22    Public Aid Code, the Covering ALL KIDS Health Insurance
23    Act, or the Children's Health Insurance Program Act by a
24    pharmacy to the Department of Healthcare and Family
25    Services.
26(Source: P.A. 96-555, eff. 8-18-09; 96-802, eff. 1-1-10;

 

 

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196-959, eff. 7-1-10; 96-1000, eff. 7-2-10; 96-1501, eff.
21-25-11; 96-1530, eff. 2-16-11; revised 2-22-11.)
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.".