Illinois General Assembly - Full Text of SB0226
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Full Text of SB0226  93rd General Assembly

SB0226eng 93rd General Assembly


SB226 Engrossed                      LRB093 02039 SJM 02040 b

 1        AN ACT concerning State finance.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.  The  State  Prompt Payment Act is amended by
 5    adding Section 8 as follows:

 6        (30 ILCS 540/8 new)
 7        Sec. 8. Payment of  vendor's  debt  service  costs  as  a
 8    result of late payment. If a State official or agency is more
 9    than  60  days  late in payment of a vendor's bill or invoice
10    for goods  or  services  furnished  to  the  State,  properly
11    approved  in accordance with rules adopted under Section 3-3,
12    and the vendor is forced to borrow money to make up  for  the
13    late payment from the State, in addition to any other payment
14    the  State  is required to make to the vendor, the State must
15    pay the vendor an amount equal to the vendor's  debt  service
16    costs related to the money the vendor borrowed as a result of
17    the  late  payment. The vendor's debt service costs can be no
18    greater than the prime rate less any interest  penalties  the
19    State   is  required  to  make  to  the  vendor  under  other
20    provisions of this Act. For purposes of this Section,  "prime
21    rate"  means  the prime rate as from time to time is publicly
22    announced by the largest commercial  banking  institution  in
23    this State, measured in terms of total assets.