Full Text of SB1728 97th General Assembly
SB1728sam001 97TH GENERAL ASSEMBLY | Sen. Tim Bivins Filed: 3/8/2011
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| 1 | | AMENDMENT TO SENATE BILL 1728
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1728 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The State Comptroller Act is amended by | 5 | | changing 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 | 9 | | Treasurer, may provide by rule or regulation for the
direct | 10 | | deposit of any payment lawfully payable from the State Treasury | 11 | | and in
accordance with federal banking regulations including | 12 | | but not limited to
payments to (i) persons paid from personal | 13 | | services, (ii)
persons receiving benefit payments from the | 14 | | Comptroller him under the State pension
systems, (iii) | 15 | | individuals who receive assistance under Articles III, IV,
and | 16 | | VI of the Illinois Public Aid Code, (iv) providers of services |
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| 1 | | under
the Mental Health and Developmental Disabilities
| 2 | | Administrative Act, (v)
providers of community-based mental | 3 | | health services, and (vi) providers of
services under programs | 4 | | administered by the State Board of Education, in the
accounts | 5 | | of those persons or entities maintained at a bank, savings and | 6 | | loan
association, or credit
union, where authorized by the | 7 | | payee. The Comptroller also may deposit
public aid payments for | 8 | | individuals who receive assistance under Articles
III, IV, VI, | 9 | | and X of the Illinois Public Aid Code directly into an
| 10 | | electronic benefits transfer account in a financial | 11 | | institution approved by
the State Treasurer as prescribed by | 12 | | the Illinois Department of Human
Services
and in accordance | 13 | | with the rules and regulations of that Department and the
rules | 14 | | and regulation adopted by the Comptroller and the State | 15 | | Treasurer.
The Comptroller, with the approval of the State | 16 | | Treasurer, may provide by
rule for the electronic direct | 17 | | deposit of payments to public agencies and any
other payee of | 18 | | the State. The electronic direct
deposits may be made to the | 19 | | designated account in those financial institutions
specified | 20 | | in this Section for the direct deposit of payments. Within 6 | 21 | | months
after the effective date of this amendatory Act of 1994, | 22 | | the Comptroller shall
establish a pilot program for the | 23 | | electronic direct deposit of payments to
local school | 24 | | districts, municipalities, and units of local government.
The | 25 | | payments may be made without the use of the voucher-warrant | 26 | | system,
provided that documentation of approval by the |
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| 1 | | Treasurer of each group of
payments made by direct deposit | 2 | | shall be retained by the Comptroller. The
form and method of | 3 | | the Treasurer's approval shall be established by the
rules or | 4 | | regulations adopted by the Comptroller under this Section. | 5 | | (b) All State payments for an employee's payroll or an | 6 | | employee's expense reimbursement must be made through direct | 7 | | deposit. It is the responsibility of the paying State agency to | 8 | | ensure compliance with this mandate. If a State agency pays an | 9 | | employee's payroll or an employee's expense reimbursement | 10 | | without using direct deposit, the Comptroller may charge that | 11 | | employee a processing fee of $2.50 per paper warrant. The | 12 | | amount collected from the fee shall be deposited into the | 13 | | Comptroller's Administrative Fund. | 14 | | (c) A State employee or vendor may file a hardship petition | 15 | | with the Office of the Comptroller requesting an exemption from | 16 | | the direct deposit mandate under this Section. A hardship | 17 | | petition shall be made available for download on the | 18 | | Comptroller's official Internet website. | 19 | | (d) All State payments to a vendor that exceed the | 20 | | allowable limit of paper warrants in a fiscal year, by the same | 21 | | agency, must be made through direct deposit. It is the | 22 | | responsibility of the paying State agency to ensure compliance | 23 | | with this mandate. If a State agency pays a vendor more times | 24 | | than the allowable limit in a single fiscal year without using | 25 | | direct deposit, the Comptroller may charge the vendor a | 26 | | processing fee of $2.50 per paper warrant. The amount collected |
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| 1 | | from the processing fee shall be deposited into the | 2 | | Comptroller's Administrative Fund. The Office of Comptroller | 3 | | shall define "vendor" and "allowable limit" in the Statewide | 4 | | Accounting Management Manual System (SAMS) manual and shall | 5 | | provide such notice to all State agencies. | 6 | | (e) Notwithstanding any provision of law to the contrary, | 7 | | the direct deposit of State payments under this Section for an | 8 | | employee's payroll, an employee's expense reimbursement, or a | 9 | | State vendor's payment does not authorize the State to | 10 | | automatically withdraw funds from those accounts.
| 11 | | (Source: P.A. 88-641, eff. 9-9-94; 88-643, eff. 1-1-95; 89-235, | 12 | | eff.
8-4-95; 89-507, eff. 7-1-97.)
| 13 | | Section 10. The State Prompt Payment Act is amended by | 14 | | changing Section 3-2 as follows:
| 15 | | (30 ILCS 540/3-2)
| 16 | | Sec. 3-2. Beginning July 1, 1993, in any instance where a | 17 | | State official or
agency is late in payment of a vendor's bill | 18 | | or invoice for goods or services
furnished to the State, as | 19 | | defined in Section 1, properly approved in
accordance with | 20 | | rules promulgated under Section 3-3, the State official or
| 21 | | agency shall pay interest to the vendor in accordance with the | 22 | | following:
| 23 | | (1) Any bill, except a bill submitted under Article V | 24 | | 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 of receipt
of a proper bill or | 3 | | invoice.
If payment is not issued to the payee within this | 4 | | 60-day 60 day
period, an
interest penalty of 1.0% of any | 5 | | amount approved and unpaid shall be added
for each month or | 6 | | fraction thereof after the end of this 60-day 60 day | 7 | | period,
until final payment is made. Any bill, except a | 8 | | bill for pharmacy
or nursing facility services or goods, | 9 | | submitted under Article V of the Illinois Public Aid Code | 10 | | approved for payment under this Section must be paid
or the | 11 | | payment issued to the payee within 60 days after receipt
of | 12 | | a proper bill or invoice, and,
if payment is not issued to | 13 | | the payee within this 60-day
period, an
interest penalty of | 14 | | 2.0% of any amount approved and unpaid shall be added
for | 15 | | each month or fraction thereof after the end of this 60-day | 16 | | period,
until final payment is made. Any bill for pharmacy | 17 | | or nursing facility services or
goods submitted under | 18 | | Article V of the Illinois Public Aid
Code and , approved for | 19 | | payment under this Section must be paid
or the payment | 20 | | issued to the payee within 60 days of
receipt of a proper | 21 | | bill or invoice. If payment is not
issued to the payee | 22 | | within this 60-day 60 day period, an interest
penalty of | 23 | | 1.0% of any amount approved and unpaid shall be
added for | 24 | | each month or fraction thereof after the end of this 60-day | 25 | | 60 day period, until final payment is made.
| 26 | | (1.1) A State agency shall review in a timely manner |
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| 1 | | each bill or
invoice after its receipt. If the
State agency | 2 | | determines that the bill or invoice contains a defect | 3 | | making it
unable to process the payment request, the agency
| 4 | | shall notify the vendor requesting payment as soon as | 5 | | possible after
discovering the
defect pursuant to rules | 6 | | promulgated under Section 3-3; provided, however, that the | 7 | | notice for construction related bills or invoices must be | 8 | | given not later than 30 days after the bill or invoice was | 9 | | first submitted. The notice shall
identify the defect and | 10 | | any additional information
necessary to correct the | 11 | | defect. If one or more items on a construction related bill | 12 | | or invoice are disapproved, but not the entire bill or | 13 | | invoice, then the portion that is not disapproved shall be | 14 | | paid.
| 15 | | (2) Where a State official or agency is late in payment | 16 | | of a
vendor's bill or invoice properly approved in | 17 | | accordance with this Act, and
different late payment terms | 18 | | are not reduced to writing as a contractual
agreement, the | 19 | | State official or agency shall automatically pay interest
| 20 | | penalties required by this Section amounting to $50 or more | 21 | | to the appropriate
vendor. Each agency shall be responsible | 22 | | for determining whether an interest
penalty
is
owed and
for | 23 | | paying the interest to the vendor.
Except as provided in | 24 | | paragraph (4), an individual interest payment amounting to | 25 | | $5 or less shall not be paid by the State. Interest due to | 26 | | a vendor that amounts to greater than $5 and less than $50 |
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| 1 | | shall not be paid but shall be accrued until all interest | 2 | | due the vendor for all similar warrants exceeds $50, at | 3 | | which time the accrued interest shall be payable and | 4 | | interest will begin accruing again, except that interest | 5 | | accrued as of the end of the fiscal year that does not | 6 | | exceed $50 shall be payable at that time. In the event an
| 7 | | individual has paid a vendor for services in advance, the | 8 | | provisions of this
Section shall apply until payment is | 9 | | made to that individual.
| 10 | | (3) The provisions of Public Act 96-1501 this | 11 | | amendatory Act of the 96th General Assembly reducing the | 12 | | interest rate on pharmacy claims under Article V of the | 13 | | Illinois Public Aid Code to 1.0% per month shall apply to | 14 | | any pharmacy bills for services and goods under Article V | 15 | | of the Illinois Public Aid Code received on or after the | 16 | | date 60 days before January 25, 2011 ( the effective date of | 17 | | Public Act 96-1501) this amendatory Act of the 96th General | 18 | | Assembly . | 19 | | (4) Interest amounting to less than $5 shall not be | 20 | | paid by the State, except for claims for prescriptive | 21 | | services submitted pursuant to Article V of the Illinois | 22 | | Public Aid Code, the Covering ALL KIDS Health Insurance | 23 | | Act, or the Children's Health Insurance Program Act by a | 24 | | pharmacy to the Department of Healthcare and Family | 25 | | Services. | 26 | | (Source: P.A. 96-555, eff. 8-18-09; 96-802, eff. 1-1-10; |
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| 1 | | 96-959, eff. 7-1-10; 96-1000, eff. 7-2-10; 96-1501, eff. | 2 | | 1-25-11; 96-1530, eff. 2-16-11; revised 2-22-11.)
| 3 | | Section 99. Effective date. This Act takes effect upon | 4 | | becoming law.".
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