Full Text of HB4981 99th General Assembly
HB4981ham001 99TH GENERAL ASSEMBLY | Rep. David Harris Filed: 4/4/2016
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| 1 | | AMENDMENT TO HOUSE BILL 4981
| 2 | | AMENDMENT NO. ______. Amend House Bill 4981 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The State Prompt Payment Act is amended by | 5 | | changing Section 3-2 as follows:
| 6 | | (30 ILCS 540/3-2)
| 7 | | 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
| 12 | | agency shall pay interest to the vendor in accordance with the | 13 | | following:
| 14 | | (1) Any bill, except a bill submitted under Article V | 15 | | of the Illinois Public Aid Code and except as provided | 16 | | under paragraph (1.05) of this Section, approved for |
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| 1 | | payment under this Section must be paid
or the payment | 2 | | issued to the payee within 60 days of receipt
of a proper | 3 | | bill or invoice.
If payment is not issued to the payee | 4 | | within this 60-day
period, an
interest penalty of 1.0% of | 5 | | any amount approved and unpaid shall be added
for each | 6 | | month or fraction thereof after the end of this 60-day | 7 | | period,
until final payment is made. Any bill, except a | 8 | | bill for pharmacy
or nursing facility services or goods, | 9 | | and except as provided under paragraph (1.05) of this | 10 | | Section, submitted under Article V of the Illinois Public | 11 | | Aid Code approved for payment under this Section must be | 12 | | paid
or the payment issued to the payee within 60 days | 13 | | after receipt
of a proper bill or invoice, and,
if payment | 14 | | is not issued to the payee within this 60-day
period, an
| 15 | | interest penalty of 2.0% of any amount approved and unpaid | 16 | | shall be added
for each month or fraction thereof after the | 17 | | end of this 60-day period,
until final payment is made. Any | 18 | | bill for pharmacy or nursing facility services or
goods | 19 | | submitted under Article V of the Illinois Public Aid
Code, | 20 | | except as provided under paragraph (1.05) of this Section, | 21 | | and approved for payment under this Section must be paid
or | 22 | | the payment issued to the payee within 60 days of
receipt | 23 | | of a proper bill or invoice. If payment is not
issued to | 24 | | the payee within this 60-day period, an interest
penalty of | 25 | | 1.0% of any amount approved and unpaid shall be
added for | 26 | | each month or fraction thereof after the end of this 60-day |
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| 1 | | period, until final payment is made.
| 2 | | (1.05) For State fiscal year 2012 and future fiscal | 3 | | years, any bill approved for payment under this Section | 4 | | must be paid
or the payment issued to the payee within 90 | 5 | | days of receipt
of a proper bill or invoice.
If payment is | 6 | | not issued to the payee within this 90-day
period, then, | 7 | | (i) for bills or invoices submitted prior to the effective | 8 | | date of this amendatory Act of the 99th General Assembly, | 9 | | an
interest penalty of 1.0% of any amount approved and | 10 | | unpaid shall be added
for each month, or 0.033% | 11 | | (one-thirtieth of one percent) of any amount approved and | 12 | | unpaid for each day, after the end of this 90-day period,
| 13 | | until final payment is made , and (ii) for bills or invoices | 14 | | submitted on or after the effective date of this amendatory | 15 | | Act of the 99th General Assembly, an
interest penalty of | 16 | | 0.75% of any amount approved and unpaid shall be added
for | 17 | | each month, or 0.025% (one-thirtieth of 0.75%) of any | 18 | | amount approved and unpaid for each day, after the end of | 19 | | this 90-day period until final payment is made .
| 20 | | (1.1) A State agency shall review in a timely manner | 21 | | each bill or
invoice after its receipt. If the
State agency | 22 | | determines that the bill or invoice contains a defect | 23 | | making it
unable to process the payment request, the agency
| 24 | | shall notify the vendor requesting payment as soon as | 25 | | possible after
discovering the
defect pursuant to rules | 26 | | promulgated under Section 3-3; provided, however, that the |
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| 1 | | notice for construction related bills or invoices must be | 2 | | given not later than 30 days after the bill or invoice was | 3 | | first submitted. The notice shall
identify the defect and | 4 | | any additional information
necessary to correct the | 5 | | defect. If one or more items on a construction related bill | 6 | | or invoice are disapproved, but not the entire bill or | 7 | | invoice, then the portion that is not disapproved shall be | 8 | | paid.
| 9 | | (2) Where a State official or agency is late in payment | 10 | | of a
vendor's bill or invoice properly approved in | 11 | | accordance with this Act, and
different late payment terms | 12 | | are not reduced to writing as a contractual
agreement, the | 13 | | State official or agency shall automatically pay interest
| 14 | | penalties required by this Section amounting to $50 or more | 15 | | to the appropriate
vendor. Each agency shall be responsible | 16 | | for determining whether an interest
penalty
is
owed and
for | 17 | | paying the interest to the vendor. Except as provided in | 18 | | paragraph (4), an individual interest payment amounting to | 19 | | $5 or less shall not be paid by the State.
Interest due to | 20 | | a vendor that amounts to greater than $5 and less than $50 | 21 | | shall not be paid but shall be accrued until all interest | 22 | | due the vendor for all similar warrants exceeds $50, at | 23 | | which time the accrued interest shall be payable and | 24 | | interest will begin accruing again, except that interest | 25 | | accrued as of the end of the fiscal year that does not | 26 | | exceed $50 shall be payable at that time. In the event an
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| 1 | | individual has paid a vendor for services in advance, the | 2 | | provisions of this
Section shall apply until payment is | 3 | | made to that individual.
| 4 | | (3) The provisions of Public Act 96-1501 reducing the | 5 | | interest rate on pharmacy claims under Article V of the | 6 | | Illinois Public Aid Code to 1.0% per month shall apply to | 7 | | any pharmacy bills for services and goods under Article V | 8 | | of the Illinois Public Aid Code received on or after the | 9 | | date 60 days before January 25, 2011 (the effective date of | 10 | | Public Act 96-1501) except as provided under paragraph | 11 | | (1.05) of this Section. | 12 | | (4) Interest amounting to less than $5 shall not be | 13 | | paid by the State, except for claims (i) to the Department | 14 | | of Healthcare and Family Services or the Department of | 15 | | Human Services, (ii) pursuant to Article V of the Illinois | 16 | | Public Aid Code, the Covering ALL KIDS Health Insurance | 17 | | Act, or the Children's Health Insurance Program Act, and | 18 | | (iii) made (A) by pharmacies for prescriptive services or | 19 | | (B) by any federally qualified health center for | 20 | | prescriptive services or any other services. | 21 | | (Source: P.A. 96-555, eff. 8-18-09; 96-802, eff. 1-1-10; | 22 | | 96-959, eff. 7-1-10; 96-1000, eff. 7-2-10; 96-1501, eff. | 23 | | 1-25-11; 96-1530, eff. 2-16-11; 97-72, eff. 7-1-11; 97-74, eff. | 24 | | 6-30-11; 97-348, eff. 8-12-11; 97-813, eff. 7-13-12; 97-932, | 25 | | eff. 8-10-12; 97-1142, eff. 12-28-12.)
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| 1 | | Section 99. Effective date. This Act takes effect upon | 2 | | becoming law.".
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