Full Text of HB0549 95th General Assembly
HB0549eng 95TH GENERAL ASSEMBLY
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HB0549 Engrossed |
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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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| (Text of Section before amendment by P.A. 94-972 )
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| Sec. 3-2. Beginning July 1, 1993, in any instance where a | 9 |
| State official or
agency is late in payment of a vendor's bill | 10 |
| or invoice for goods or services
furnished to the State, as | 11 |
| defined in Section 1, properly approved in
accordance with | 12 |
| 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 | 14 |
| following:
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| (1) Any bill , except a bill submitted under Article V | 16 |
| of the Illinois Public Aid Code, approved for payment under | 17 |
| this Section must be paid
or the payment issued to the | 18 |
| payee within 60 days of receipt
of a proper bill or | 19 |
| invoice.
If payment is not issued to the payee within this | 20 |
| 60 day
period, an
interest penalty of 1.0% of any amount | 21 |
| approved and unpaid shall be added
for each month or | 22 |
| fraction thereof after the end of this 60 day period,
until | 23 |
| final payment is made. Any bill submitted under Article V |
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HB0549 Engrossed |
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LRB095 05325 BDD 25406 b |
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| of the Illinois Public Aid Code approved for payment under | 2 |
| this Section must be paid
or the payment issued to the | 3 |
| payee within 30 days of receipt
of a proper bill or | 4 |
| invoice, and,
if payment is not issued to the payee within | 5 |
| this 30-day
period, an
interest penalty of 2.0% of any | 6 |
| amount approved and unpaid shall be added
for each month or | 7 |
| fraction thereof after the end of this 30-day period,
until | 8 |
| final payment is made.
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| (1.1) A State agency shall review in a timely manner | 10 |
| each bill or
invoice after its receipt. If the
State agency | 11 |
| determines that the bill or invoice contains a defect | 12 |
| making it
unable to process the payment request, the agency
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| shall notify the vendor requesting payment as soon as | 14 |
| possible after
discovering the
defect pursuant to rules | 15 |
| promulgated under Section 3-3. The notice shall
identify | 16 |
| the defect and any additional information
necessary to | 17 |
| correct the defect.
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| (2) Where a State official or agency is late in payment | 19 |
| of a
vendor's bill or invoice properly approved in | 20 |
| accordance with this Act, and
different late payment terms | 21 |
| are not reduced to writing as a contractual
agreement, the | 22 |
| State official or agency shall automatically pay interest
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| penalties required by this Section amounting to $50 or more | 24 |
| to the appropriate
vendor. Each agency shall be responsible | 25 |
| for determining whether an interest
penalty
is
owed and
for | 26 |
| paying the interest to the vendor.
For interest of at least |
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HB0549 Engrossed |
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LRB095 05325 BDD 25406 b |
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| $5 but less than $50, the vendor must
initiate a written | 2 |
| request for the interest penalty when such interest is due
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| and payable. The Department of Central Management Services | 4 |
| and the State
Comptroller shall jointly promulgate rules | 5 |
| establishing the conditions under
which interest of less | 6 |
| than $5 may be claimed and paid. In the event an
individual | 7 |
| has paid a vendor for services in advance, the provisions | 8 |
| of this
Section shall apply until payment is made to that | 9 |
| individual.
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| (Source: P.A. 92-384, eff. 7-1-02.)
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| (Text of Section after amendment by P.A. 94-972 )
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| Sec. 3-2. Beginning July 1, 1993, in any instance where a | 13 |
| State official or
agency is late in payment of a vendor's bill | 14 |
| or invoice for goods or services
furnished to the State, as | 15 |
| defined in Section 1, properly approved in
accordance with | 16 |
| rules promulgated under Section 3-3, the State official or
| 17 |
| agency shall pay interest to the vendor in accordance with the | 18 |
| following:
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| (1) Any bill , except a bill submitted under Article V | 20 |
| of the Illinois Public Aid Code, approved for payment under | 21 |
| this Section must be paid
or the payment issued to the | 22 |
| payee within 60 days of receipt
of a proper bill or | 23 |
| invoice.
If payment is not issued to the payee within this | 24 |
| 60 day
period, an
interest penalty of 1.0% of any amount | 25 |
| approved and unpaid shall be added
for each month or |
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|
HB0549 Engrossed |
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LRB095 05325 BDD 25406 b |
|
| 1 |
| fraction thereof after the end of this 60 day period,
until | 2 |
| final payment is made. Any bill submitted under Article V | 3 |
| of the Illinois Public Aid Code approved for payment under | 4 |
| this Section must be paid
or the payment issued to the | 5 |
| payee within 30 days of receipt
of a proper bill or | 6 |
| invoice, and,
if payment is not issued to the payee within | 7 |
| this 30-day
period, an
interest penalty of 2.0% of any | 8 |
| amount approved and unpaid shall be added
for each month or | 9 |
| fraction thereof after the end of this 30-day period,
until | 10 |
| final payment is made.
| 11 |
| (1.1) A State agency shall review in a timely manner | 12 |
| each bill or
invoice after its receipt. If the
State agency | 13 |
| determines that the bill or invoice contains a defect | 14 |
| making it
unable to process the payment request, the agency
| 15 |
| shall notify the vendor requesting payment as soon as | 16 |
| possible after
discovering the
defect pursuant to rules | 17 |
| promulgated under Section 3-3; provided, however, that the | 18 |
| notice for construction related bills or invoices must be | 19 |
| given not later than 30 days after the bill or invoice was | 20 |
| first submitted. The notice shall
identify the defect and | 21 |
| any additional information
necessary to correct the | 22 |
| defect. If one or more items on a construction related bill | 23 |
| or invoice are disapproved, but not the entire bill or | 24 |
| invoice, then the portion that is not disapproved shall be | 25 |
| paid.
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| (2) Where a State official or agency is late in payment |
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HB0549 Engrossed |
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LRB095 05325 BDD 25406 b |
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| 1 |
| of a
vendor's bill or invoice properly approved in | 2 |
| accordance with this Act, and
different late payment terms | 3 |
| are not reduced to writing as a contractual
agreement, the | 4 |
| State official or agency shall automatically pay interest
| 5 |
| penalties required by this Section amounting to $50 or more | 6 |
| to the appropriate
vendor. Each agency shall be responsible | 7 |
| for determining whether an interest
penalty
is
owed and
for | 8 |
| paying the interest to the vendor.
For interest of at least | 9 |
| $5 but less than $50, the vendor must
initiate a written | 10 |
| request for the interest penalty when such interest is due
| 11 |
| and payable. The Department of Central Management Services | 12 |
| and the State
Comptroller shall jointly promulgate rules | 13 |
| establishing the conditions under
which interest of less | 14 |
| than $5 may be claimed and paid. In the event an
individual | 15 |
| has paid a vendor for services in advance, the provisions | 16 |
| of this
Section shall apply until payment is made to that | 17 |
| individual.
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| (Source: P.A. 94-972, eff. 7-1-07.)
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| Section 95. No acceleration or delay. Where this Act makes | 20 |
| changes in a statute that is represented in this Act by text | 21 |
| that is not yet or no longer in effect (for example, a Section | 22 |
| represented by multiple versions), the use of that text does | 23 |
| not accelerate or delay the taking effect of (i) the changes | 24 |
| made by this Act or (ii) provisions derived from any other | 25 |
| Public Act.
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