97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB1728

 

Introduced 2/9/2011, by Sen. Tim Bivins

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 540/3-2

    Amends the State Prompt Payment Act. Provides that interest payments under the Act must be made by electronic funds transfer. Provides that the State official or agency may not share the vendor's account information with any other State agency. Effective July 1, 2011.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Prompt Payment Act is amended by
5changing Section 3-2 as follows:
 
6    (30 ILCS 540/3-2)
7    Sec. 3-2. Beginning July 1, 1993, in any instance where a
8State official or agency is late in payment of a vendor's bill
9or invoice for goods or services furnished to the State, as
10defined in Section 1, properly approved in accordance with
11rules promulgated under Section 3-3, the State official or
12agency shall pay interest to the vendor in accordance with the
13following:
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

 

 

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1    this Section must be paid or the payment issued to the
2    payee within 60 days after receipt of a proper bill or
3    invoice, and, if payment is not issued to the payee within
4    this 60-day period, an interest penalty of 2.0% of any
5    amount approved and unpaid shall be added for each month or
6    fraction thereof after the end of this 60-day period, until
7    final payment is made.
8        (1.1) A State agency shall review in a timely manner
9    each bill or invoice after its receipt. If the State agency
10    determines that the bill or invoice contains a defect
11    making it unable to process the payment request, the agency
12    shall notify the vendor requesting payment as soon as
13    possible after discovering the defect pursuant to rules
14    promulgated under Section 3-3; provided, however, that the
15    notice for construction related bills or invoices must be
16    given not later than 30 days after the bill or invoice was
17    first submitted. The notice shall identify the defect and
18    any additional information necessary to correct the
19    defect. If one or more items on a construction related bill
20    or invoice are disapproved, but not the entire bill or
21    invoice, then the portion that is not disapproved shall be
22    paid.
23        (2) Where a State official or agency is late in payment
24    of a vendor's bill or invoice properly approved in
25    accordance with this Act, and different late payment terms
26    are not reduced to writing as a contractual agreement, the

 

 

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1    State official or agency shall automatically pay interest
2    penalties required by this Section amounting to $50 or more
3    to the appropriate vendor. Each agency shall be responsible
4    for determining whether an interest penalty is owed and for
5    paying the interest to the vendor. Interest due to a vendor
6    that amounts to less than $50 shall not be paid but shall
7    be accrued until all interest due the vendor for all
8    similar warrants exceeds $50, at which time the accrued
9    interest shall be payable and interest will begin accruing
10    again, except that interest accrued as of the end of the
11    fiscal year that does not exceed $50 shall be payable at
12    that time. In the event an individual has paid a vendor for
13    services in advance, the provisions of this Section shall
14    apply until payment is made to that individual. Interest
15    payments made under this item (2) must be made by
16    electronic funds transfer. The State official or agency may
17    not share the vendor's account information with any other
18    State agency.
19(Source: P.A. 96-555, eff. 8-18-09; 96-802, eff. 1-1-10;
2096-959, eff. 7-1-10; 96-1000, eff. 7-2-10.)
 
21    Section 99. Effective date. This Act takes effect July 1,
222011.