Illinois General Assembly - Bill Status for HB5260

Amends the State Prompt Payment Act to provide that notification to a vendor that a bill or invoice contains a defect must be given not later than 45 days after the bill was first submitted or not later than 30 days after the receipt of the goods or services, whichever is later. Sets forth that if the State official or agency whose approval is required for any invoice fails to approve or disapprove that invoice within this notification period, the interest for late payment of that invoice shall be computed from the date 60 days after the receipt of that invoice or the date 60 days after the goods or services are received, whichever is later. Provides that if the State fails to pay any invoice within 30 days of approval or fails to approve or disapprove the invoice within the period at which interest may accrue, plus an additional 30 days, the contractor and subcontractors not paid may suspend performance under the construction contract or subcontracts without penalty, until the overdue payment or payments are made. Authorizes contractors, subcontractors, and material suppliers to recover the interest payable under this Act in any action pursuant to Section 23 of the Mechanics Lien Act or pursuant to the Public Construction Bond Act.

Deletes everything after the enacting clause. Requires the notice of a defect for construction related bills or invoices to be given not later than 30 days after the bill or invoice was first submitted or not later than 30 days after the receipt of the goods or services, whichever is later.

Deletes everything after the enacting clause. Amends the State Prompt Payment Act to require that the notice of defect for construction related bills or invoices must be given not later than 30 days after the bill or invoice was first submitted (instead of within that period or not later than 30 days after the receipt of the goods or services, whichever is later). Sets forth that if one or more items on a construction related bill or invoice are disapproved, but not the entire bill or invoice, then the portion that is not disapproved shall be paid. Provides that certain payments to subcontractors and material suppliers shall include interest received under the Act. Amends the Local Government Prompt Payment Act. In a Section requiring the appropriate official or agency receiving goods or services to approve or disapprove a bill from a vendor or contractor within certain time periods, sets forth that if one or more items on a construction related bill or invoice are disapproved, but not the entire bill or invoice, then the portion that is not disapproved shall be paid. Requires that certain interest payments to contractors to whom payment has been delayed shall be disbursed to subcontractors and material suppliers to whom payment has been delayed, on a pro rata basis. Effective July 1, 2007.

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