Rep. Frank J. Mautino

Filed: 3/31/2011

 

 


 

 


 
09700HB3449ham003LRB097 10811 RLJ 53730 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 regulations regulation adopted by the Comptroller and the
15State Treasurer. The Comptroller, with the approval of the
16State Treasurer, 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
12processing fee may be withheld from the employee's payment or
13reimbursement. The amount collected from the fee shall be
14deposited into the Comptroller's Administrative Fund.
15    (c) All State payments to a vendor that exceed the
16allowable limit of paper warrants in a fiscal year, by the same
17agency, must be made through direct deposit. It is the
18responsibility of the paying State agency to ensure compliance
19with this mandate. If a State agency pays a vendor more times
20than the allowable limit in a single fiscal year without using
21direct deposit, the Comptroller may charge the vendor a
22processing fee of $2.50 per paper warrant. The processing fee
23may be withheld from the vendor's payment. The amount collected
24from the processing fee shall be deposited into the
25Comptroller's Administrative Fund. The Office of the
26Comptroller shall define "allowable limit" in the

 

 

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1Comptroller's Statewide Accounting Management System (SAMS)
2manual, except that the allowable limit shall not be less than
330 paper warrants. The Office of the Comptroller shall also
4provide reasonable notice to all State agencies of the
5allowable limit of paper warrants.
6    (d) State employees covered by provisions in collective
7bargaining agreements that do not require direct deposit of
8paychecks are exempt from this mandate. No later than 60 days
9after the effective date of this amendatory Act of the 97th
10General Assembly, all State agencies must provide to the Office
11of the Comptroller a list of employees that are exempt under
12this subsection (d) from the direct deposit mandate. In
13addition, a State employee or vendor may file a hardship
14petition with the Office of the Comptroller requesting an
15exemption from the direct deposit mandate under this Section. A
16hardship petition shall be made available for download on the
17Comptroller's official Internet website.
18    (e) Notwithstanding any provision of law to the contrary,
19the direct deposit of State payments under this Section for an
20employee's payroll, an employee's expense reimbursement, or a
21State vendor's payment does not authorize the State to
22automatically withdraw funds from those accounts.
23    (f) For the purposes of this Section, "vendor" means a
24non-governmental entity with a taxpayer identification number
25issued by the Social Security Administration or Internal
26Revenue Service that receives payments through the

 

 

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1Comptroller's commercial system. The term does not include
2State agencies.
3(Source: P.A. 88-641, eff. 9-9-94; 88-643, eff. 1-1-95; 89-235,
4eff. 8-4-95; 89-507, eff. 7-1-97.)
 
5    Section 10. The State Prompt Payment Act is amended by
6changing Section 3-2 as follows:
 
7    (30 ILCS 540/3-2)
8    Sec. 3-2. Beginning July 1, 1993, in any instance where a
9State official or agency is late in payment of a vendor's bill
10or invoice for goods or services furnished to the State, as
11defined in Section 1, properly approved in accordance with
12rules promulgated under Section 3-3, the State official or
13agency shall pay interest to the vendor in accordance with the
14following:
15        (1) Any bill, except a bill submitted under Article V
16    of the Illinois Public Aid Code, approved for payment under
17    this Section must be paid or the payment issued to the
18    payee within 60 days of receipt of a proper bill or
19    invoice. If payment is not issued to the payee within this
20    60-day 60 day period, an interest penalty of 1.0% of any
21    amount approved and unpaid shall be added for each month or
22    fraction thereof after the end of this 60-day 60 day
23    period, until final payment is made. Any bill, except a
24    bill for pharmacy or nursing facility services or goods,

 

 

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1    submitted under Article V of the Illinois Public Aid Code
2    approved for payment under this Section must be paid or the
3    payment issued to the payee within 60 days after receipt of
4    a proper bill or invoice, and, if payment is not issued to
5    the payee within this 60-day period, an interest penalty of
6    2.0% of any amount approved and unpaid shall be added for
7    each month or fraction thereof after the end of this 60-day
8    period, until final payment is made. Any bill for pharmacy
9    or nursing facility services or goods submitted under
10    Article V of the Illinois Public Aid Code and , approved for
11    payment under this Section must be paid or the payment
12    issued to the payee within 60 days of receipt of a proper
13    bill or invoice. If payment is not issued to the payee
14    within this 60-day 60 day period, an interest penalty of
15    1.0% of any amount approved and unpaid shall be added for
16    each month or fraction thereof after the end of this 60-day
17    60 day period, until final payment is made.
18        (1.1) A State agency shall review in a timely manner
19    each bill or invoice after its receipt. If the State agency
20    determines that the bill or invoice contains a defect
21    making it unable to process the payment request, the agency
22    shall notify the vendor requesting payment as soon as
23    possible after discovering the defect pursuant to rules
24    promulgated under Section 3-3; provided, however, that the
25    notice for construction related bills or invoices must be
26    given not later than 30 days after the bill or invoice was

 

 

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1    first submitted. The notice shall identify the defect and
2    any additional information necessary to correct the
3    defect. If one or more items on a construction related bill
4    or invoice are disapproved, but not the entire bill or
5    invoice, then the portion that is not disapproved shall be
6    paid.
7        (2) Where a State official or agency is late in payment
8    of a vendor's bill or invoice properly approved in
9    accordance with this Act, and different late payment terms
10    are not reduced to writing as a contractual agreement, the
11    State official or agency shall automatically pay interest
12    penalties required by this Section amounting to $50 or more
13    to the appropriate vendor. Each agency shall be responsible
14    for determining whether an interest penalty is owed and for
15    paying the interest to the vendor. Except as provided in
16    paragraph (4), an individual interest payment amounting to
17    $5 or less shall not be paid by the State. Interest due to
18    a vendor that amounts to greater than $5 and less than $50
19    shall not be paid but shall be accrued until all interest
20    due the vendor for all similar warrants exceeds $50, at
21    which time the accrued interest shall be payable and
22    interest will begin accruing again, except that interest
23    accrued as of the end of the fiscal year that does not
24    exceed $50 shall be payable at that time. In the event an
25    individual has paid a vendor for services in advance, the
26    provisions of this Section shall apply until payment is

 

 

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1    made to that individual.
2        (3) The provisions of Public Act 96-1501 this
3    amendatory Act of the 96th General Assembly reducing the
4    interest rate on pharmacy claims under Article V of the
5    Illinois Public Aid Code to 1.0% per month shall apply to
6    any pharmacy bills for services and goods under Article V
7    of the Illinois Public Aid Code received on or after the
8    date 60 days before January 25, 2011 (the effective date of
9    Public Act 96-1501) this amendatory Act of the 96th General
10    Assembly.
11        (4) Interest amounting to less than $5 shall not be
12    paid by the State, except for claims for prescriptive
13    services or any other services submitted by a federally
14    qualified health center pursuant to Article V of the
15    Illinois Public Aid Code, the Covering ALL KIDS Health
16    Insurance Act, or the Children's Health Insurance Program
17    Act to the Department of Healthcare and Family Services.
18(Source: P.A. 96-555, eff. 8-18-09; 96-802, eff. 1-1-10;
1996-959, eff. 7-1-10; 96-1000, eff. 7-2-10; 96-1501, eff.
201-25-11; 96-1530, eff. 2-16-11; revised 2-22-11.)
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.".