Full Text of SB0044 100th General Assembly
SB0044sam001 100TH GENERAL ASSEMBLY | Sen. Laura M. Murphy Filed: 5/1/2018
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| 1 | | AMENDMENT TO SENATE BILL 44
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 44 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) This paragraph (1) applies to bills approved for | 15 | | payment prior to July 1, 2018. Any bill, except a bill | 16 | | submitted under Article V of the Illinois Public Aid Code |
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| 1 | | and except as provided under paragraphs paragraph (1.05) | 2 | | and (1.06) of this Section, approved for payment under this | 3 | | Section must be paid
or the payment issued to the payee | 4 | | within 60 days of receipt
of a proper bill or invoice.
If | 5 | | payment is not issued to the payee within this 60-day
| 6 | | period, an
interest penalty of 1.0% of any amount approved | 7 | | and unpaid shall be added
for each month or fraction | 8 | | thereof after the end of this 60-day period,
until final | 9 | | payment is made. Any bill, except a bill for pharmacy
or | 10 | | nursing facility services or goods, and except as provided | 11 | | under paragraphs paragraph (1.05) and (1.06) of this | 12 | | Section, submitted under Article V of the Illinois Public | 13 | | Aid Code approved for payment under this Section must be | 14 | | paid
or the payment issued to the payee within 60 days | 15 | | after receipt
of a proper bill or invoice, and,
if payment | 16 | | is not issued to the payee within this 60-day
period, an
| 17 | | interest penalty of 2.0% of any amount approved and unpaid | 18 | | shall be added
for each month or fraction thereof after the | 19 | | end of this 60-day period,
until final payment is made. Any | 20 | | bill for pharmacy or nursing facility services or
goods | 21 | | submitted under Article V of the Illinois Public Aid
Code, | 22 | | except as provided under paragraphs paragraph (1.05) and | 23 | | (1.06) of this Section, and approved for payment under this | 24 | | Section must be paid
or the payment issued to the payee | 25 | | within 60 days of
receipt of a proper bill or invoice. If | 26 | | payment is not
issued to the payee within this 60-day |
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| 1 | | period, an interest
penalty of 1.0% of any amount approved | 2 | | and unpaid shall be
added for each month or fraction | 3 | | thereof after the end of this 60-day period, until final | 4 | | payment is made.
| 5 | | (1.05) For State fiscal year 2012 and through June 30, | 6 | | 2018 future fiscal years , any bill approved for payment | 7 | | under this Section must be paid
or the payment issued to | 8 | | the payee within 90 days of receipt
of a proper bill or | 9 | | invoice.
If payment is not issued to the payee within this | 10 | | 90-day
period, an
interest penalty of 1.0% of any amount | 11 | | approved and unpaid shall be added
for each month, or | 12 | | 0.033% (one-thirtieth of one percent) of any amount | 13 | | approved and unpaid for each day, after the end of this | 14 | | 90-day period,
until final payment is made. | 15 | | (1.06) This paragraph (1.06) applies to bills approved | 16 | | for payment on or after July 1, 2018. By July 1, 2018, and | 17 | | by July 1 of each year thereafter, the State Comptroller | 18 | | shall determine the prompt payment interest rate for the | 19 | | fiscal year beginning on that July 1. Any bill approved for | 20 | | payment under this Section on or after July 1, 2018 must be | 21 | | paid
or the payment issued to the payee within 90 days of | 22 | | receipt
of a proper bill or invoice.
If payment is not | 23 | | issued to the payee within this 90-day
period, an
interest | 24 | | penalty calculated using the prompt payment interest rate | 25 | | shall be added
for each month or fraction thereof after the | 26 | | end of this 90-day period until final payment is made. For |
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| 1 | | the purposes of this paragraph (1.06), the prompt payment | 2 | | interest rate shall be decreased from (i) 1% per month (or | 3 | | 0.033% per day) for bills approved for payment prior to | 4 | | July 1, 2018 to (ii) the greater of (A) 0.25% per month (or | 5 | | an annual rate of 3%) or (B) an annual rate of 2 times the | 6 | | percentage increase, if any, in the Consumer Price Index | 7 | | For All Urban Consumers during the 12-month period | 8 | | immediately preceding that July 1 for bills approved for | 9 | | payment on or after July 1, 2018.
| 10 | | (1.1) A State agency shall review in a timely manner | 11 | | each bill or
invoice after its receipt. If the
State agency | 12 | | determines that the bill or invoice contains a defect | 13 | | making it
unable to process the payment request, the agency
| 14 | | shall notify the vendor requesting payment as soon as | 15 | | possible after
discovering the
defect pursuant to rules | 16 | | promulgated under Section 3-3; provided, however, that the | 17 | | notice for construction related bills or invoices must be | 18 | | given not later than 30 days after the bill or invoice was | 19 | | first submitted. The notice shall
identify the defect and | 20 | | any additional information
necessary to correct the | 21 | | defect. If one or more items on a construction related bill | 22 | | or invoice are disapproved, but not the entire bill or | 23 | | invoice, then the portion that is not disapproved shall be | 24 | | paid.
| 25 | | (2) Where a State official or agency is late in payment | 26 | | of a
vendor's bill or invoice properly approved in |
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| 1 | | accordance with this Act, and
different late payment terms | 2 | | are not reduced to writing as a contractual
agreement, the | 3 | | State official or agency shall automatically pay interest
| 4 | | penalties required by this Section amounting to $50 or more | 5 | | to the appropriate
vendor. Each agency shall be responsible | 6 | | for determining whether an interest
penalty
is
owed and
for | 7 | | paying the interest to the vendor. Except as provided in | 8 | | paragraph (4), an individual interest payment amounting to | 9 | | $5 or less shall not be paid by the State.
Interest due to | 10 | | a vendor that amounts to greater than $5 and less than $50 | 11 | | shall not be paid but shall be accrued until all interest | 12 | | due the vendor for all similar warrants exceeds $50, at | 13 | | which time the accrued interest shall be payable and | 14 | | interest will begin accruing again, except that interest | 15 | | accrued as of the end of the fiscal year that does not | 16 | | exceed $50 shall be payable at that time. In the event an
| 17 | | individual has paid a vendor for services in advance, the | 18 | | provisions of this
Section shall apply until payment is | 19 | | made to that individual.
| 20 | | (3) The provisions of Public Act 96-1501 reducing the | 21 | | interest rate on pharmacy claims under Article V of the | 22 | | Illinois Public Aid Code to 1.0% per month shall apply to | 23 | | any pharmacy bills for services and goods under Article V | 24 | | of the Illinois Public Aid Code received on or after the | 25 | | date 60 days before January 25, 2011 (the effective date of | 26 | | Public Act 96-1501) except as provided under paragraph |
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| 1 | | (1.05) of this Section. | 2 | | (4) Interest amounting to less than $5 shall not be | 3 | | paid by the State, except for claims (i) to the Department | 4 | | of Healthcare and Family Services or the Department of | 5 | | Human Services, (ii) pursuant to Article V of the Illinois | 6 | | Public Aid Code, the Covering ALL KIDS Health Insurance | 7 | | Act, or the Children's Health Insurance Program Act, and | 8 | | (iii) made (A) by pharmacies for prescriptive services or | 9 | | (B) by any federally qualified health center for | 10 | | prescriptive services or any other services. | 11 | | (Source: P.A. 96-555, eff. 8-18-09; 96-802, eff. 1-1-10; | 12 | | 96-959, eff. 7-1-10; 96-1000, eff. 7-2-10; 96-1501, eff. | 13 | | 1-25-11; 96-1530, eff. 2-16-11; 97-72, eff. 7-1-11; 97-74, eff. | 14 | | 6-30-11; 97-348, eff. 8-12-11; 97-813, eff. 7-13-12; 97-932, | 15 | | eff. 8-10-12; 97-1142, eff. 12-28-12.)
| 16 | | Section 99. Effective date. This Act takes effect upon | 17 | | becoming law.".
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