Full Text of HB0237 96th General Assembly
HB0237enr 96TH GENERAL ASSEMBLY
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HB0237 Enrolled |
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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 Sections 1 and 3-2 as follows:
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| (30 ILCS 540/1) (from Ch. 127, par. 132.401)
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| Sec. 1.
This Act applies to any State official or agency | 8 |
| authorized to
provide for payment from State funds, by virtue | 9 |
| of any appropriation of the
General Assembly, for goods or | 10 |
| services furnished to the State.
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| For purposes of this Act, "goods or
services furnished to | 12 |
| the State" include but are not limited to (i) covered health
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| care provided to eligible members and their covered dependents | 14 |
| in accordance
with the State Employees Group Insurance Act of | 15 |
| 1971, including coverage
through a physician-owned health | 16 |
| maintenance organization under Section 6.1 of
that Act , and | 17 |
| (ii) prevention, intervention, or treatment services and | 18 |
| supports for persons with developmental disabilities, mental | 19 |
| health services, alcohol and substance abuse services, | 20 |
| rehabilitation services, and early intervention services | 21 |
| provided by a vendor . For the purposes of item (ii), a vendor | 22 |
| includes but is not limited to sellers of goods and services, | 23 |
| including community-based organizations that are licensed to |
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| provide prevention, intervention, or treatment services and | 2 |
| supports for persons with developmental disabilities, mental | 3 |
| illness, and substance abuse problems.
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| For the purposes of this Act, "appropriate State official | 5 |
| or agency" is
defined as the Director or Chief Executive or his | 6 |
| designee of that State
agency or department or facility of such | 7 |
| agency or department.
With respect to covered health care | 8 |
| provided to eligible members and
their dependents in accordance | 9 |
| with the State Employees Group Insurance Act
of 1971, | 10 |
| "appropriate State official or agency" also includes an
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| administrator of a program of health benefits under that Act.
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| As used in this Act, "eligible member" means a member who | 13 |
| is eligible for
health benefits under the State Employees Group | 14 |
| Insurance Act of 1971, and
"member" and "dependent" have the | 15 |
| meanings ascribed to those terms in that Act.
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| As used in this Act, "a proper bill or invoice" means a | 17 |
| bill or invoice
that
includes the
information necessary for | 18 |
| processing the payment as may be specified by a State
agency | 19 |
| and in rules adopted in accordance with this Act.
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| (Source: P.A. 91-266, eff. 7-23-99; 92-384, eff. 7-1-02.)
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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 | 23 |
| State official or
agency is late in payment of a vendor's bill | 24 |
| or invoice for goods or services
furnished to the State, as | 25 |
| defined in Section 1, properly approved in
accordance with |
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| 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 | 3 |
| following:
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| (1) Any bill , except a bill submitted under Article V | 5 |
| of the Illinois Public Aid Code, approved for payment under | 6 |
| this Section must be paid
or the payment issued to the | 7 |
| payee within 60 days of receipt
of a proper bill or | 8 |
| invoice.
If payment is not issued to the payee within this | 9 |
| 60 day
period, an
interest penalty of 1.0% of any amount | 10 |
| approved and unpaid shall be added
for each month or | 11 |
| fraction thereof after the end of this 60 day period,
until | 12 |
| final payment is made. Any bill submitted under Article V | 13 |
| of the Illinois Public Aid Code approved for payment under | 14 |
| this Section must be paid
or the payment issued to the | 15 |
| payee within 60 days after receipt
of a proper bill or | 16 |
| invoice, and,
if payment is not issued to the payee within | 17 |
| this 60-day
period, an
interest penalty of 2.0% of any | 18 |
| amount approved and unpaid shall be added
for each month or | 19 |
| fraction thereof after the end of this 60-day period,
until | 20 |
| final payment is made.
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| (1.1) A State agency shall review in a timely manner | 22 |
| each bill or
invoice after its receipt. If the
State agency | 23 |
| determines that the bill or invoice contains a defect | 24 |
| making it
unable to process the payment request, the agency
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| shall notify the vendor requesting payment as soon as | 26 |
| possible after
discovering the
defect pursuant to rules |
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| promulgated under Section 3-3; provided, however, that the | 2 |
| notice for construction related bills or invoices must be | 3 |
| given not later than 30 days after the bill or invoice was | 4 |
| first submitted. The notice shall
identify the defect and | 5 |
| any additional information
necessary to correct the | 6 |
| defect. If one or more items on a construction related bill | 7 |
| or invoice are disapproved, but not the entire bill or | 8 |
| invoice, then the portion that is not disapproved shall be | 9 |
| paid.
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| (2) Where a State official or agency is late in payment | 11 |
| of a
vendor's bill or invoice properly approved in | 12 |
| accordance with this Act, and
different late payment terms | 13 |
| are not reduced to writing as a contractual
agreement, the | 14 |
| State official or agency shall automatically pay interest
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| penalties required by this Section amounting to $50 or more | 16 |
| to the appropriate
vendor. Each agency shall be responsible | 17 |
| for determining whether an interest
penalty
is
owed and
for | 18 |
| paying the interest to the vendor.
For interest of at least | 19 |
| $5 but less than $50, the vendor must
initiate a written | 20 |
| request for the interest penalty when such interest is due
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| and payable. The Department of Central Management Services | 22 |
| and the State
Comptroller shall jointly promulgate rules | 23 |
| establishing the conditions under
which interest of less | 24 |
| than $5 may be claimed and paid. In the event an
individual | 25 |
| has paid a vendor for services in advance, the provisions | 26 |
| of this
Section shall apply until payment is made to that |
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| individual.
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| (Source: P.A. 94-972, eff. 7-1-07 .)
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