Full Text of HB0237 96th General Assembly
HB0237eng 96TH GENERAL ASSEMBLY
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HB0237 Engrossed |
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LRB096 03175 RCE 13192 b |
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| AN ACT concerning finance.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The State Prompt Payment Act is amended by | 5 |
| changing Section 3-2 as follows:
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| (30 ILCS 540/3-2) (from Ch. 127, par. 132.403-2)
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| Sec. 3-2. Beginning July 1, 1993, in any instance where a | 8 |
| State official or
agency is late in payment of a vendor's bill | 9 |
| or invoice for goods or services
furnished to the State, as | 10 |
| defined in Section 1, properly approved in
accordance with | 11 |
| rules promulgated under Section 3-3, the State official or
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| agency shall pay interest to the vendor in accordance with the | 13 |
| following:
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| (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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HB0237 Engrossed |
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LRB096 03175 RCE 13192 b |
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| this Section must be paid
or the payment issued to the | 2 |
| payee within 30 days after receipt
of a proper bill or | 3 |
| invoice, and,
if payment is not issued to the payee within | 4 |
| this 30-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 30-day period,
until | 7 |
| final payment is made.
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| (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
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| 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.
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| (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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HB0237 Engrossed |
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LRB096 03175 RCE 13192 b |
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| State official or agency shall automatically pay interest
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| 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.
For interest of at least | 6 |
| $5 but less than $50, the vendor must
initiate a written | 7 |
| request for the interest penalty when such interest is due
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| and payable. The Department of Central Management Services | 9 |
| and the State
Comptroller shall jointly promulgate rules | 10 |
| establishing the conditions under
which interest of less | 11 |
| than $5 may be claimed and paid. In the event an
individual | 12 |
| has paid a vendor for services in advance, the provisions | 13 |
| of this
Section shall apply until payment is made to that | 14 |
| individual.
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| (Source: P.A. 94-972, eff. 7-1-07 .)
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