Full Text of HB4981 99th General Assembly
HB4981 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 HB4981 Introduced , by Rep. David Harris SYNOPSIS AS INTRODUCED: |
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Amends the State Prompt Payment Act. Provides that, for bills paid on or after the effective date, the interest penalty shall be 0.75% per month (currently, 1% per month). Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning State government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 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 | 17 | | payment under this Section must be paid
or the payment | 18 | | issued to the payee within 60 days of receipt
of a proper | 19 | | bill or invoice.
If payment is not issued to the payee | 20 | | within this 60-day
period, an
interest penalty of 1.0% of | 21 | | any amount approved and unpaid shall be added
for each | 22 | | month or fraction thereof after the end of this 60-day | 23 | | period,
until final payment is made. Any bill, except a |
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| 1 | | bill for pharmacy
or nursing facility services or goods, | 2 | | and except as provided under paragraph (1.05) of this | 3 | | Section, submitted under Article V of the Illinois Public | 4 | | Aid Code approved for payment under this Section must be | 5 | | paid
or the payment issued to the payee within 60 days | 6 | | after receipt
of a proper bill or invoice, and,
if payment | 7 | | is not issued to the payee within this 60-day
period, an
| 8 | | interest penalty of 2.0% of any amount approved and unpaid | 9 | | shall be added
for each month or fraction thereof after the | 10 | | end of this 60-day period,
until final payment is made. Any | 11 | | bill for pharmacy or nursing facility services or
goods | 12 | | submitted under Article V of the Illinois Public Aid
Code, | 13 | | except as provided under paragraph (1.05) of this Section, | 14 | | and approved for payment under this Section must be paid
or | 15 | | the payment issued to the payee within 60 days of
receipt | 16 | | of a proper bill or invoice. If payment is not
issued to | 17 | | the payee within this 60-day period, an interest
penalty of | 18 | | 1.0% of any amount approved and unpaid shall be
added for | 19 | | each month or fraction thereof after the end of this 60-day | 20 | | period, until final payment is made.
| 21 | | (1.05) For State fiscal year 2012 and future fiscal | 22 | | years, any bill approved for payment under this Section | 23 | | must be paid
or the payment issued to the payee within 90 | 24 | | days of receipt
of a proper bill or invoice.
If payment is | 25 | | not issued to the payee within this 90-day
period, then, | 26 | | (i) for bills paid prior to this amendatory Act of the 99th |
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| 1 | | General Assembly, an
interest penalty of 1.0% of any amount | 2 | | approved and unpaid shall be added
for each month, or | 3 | | 0.033% (one-thirtieth of one percent) of any amount | 4 | | approved and unpaid for each day, after the end of this | 5 | | 90-day period,
until final payment is made , and (ii) for | 6 | | bills paid on or after this amendatory Act of the 99th | 7 | | General Assembly, an
interest penalty of 0.75% of any | 8 | | amount approved and unpaid shall be added
for each month, | 9 | | or 0.025% (one-thirtieth of 0.75%) of any amount approved | 10 | | and unpaid for each day, after the end of this 90-day | 11 | | period until final payment is made .
| 12 | | (1.1) A State agency shall review in a timely manner | 13 | | each bill or
invoice after its receipt. If the
State agency | 14 | | determines that the bill or invoice contains a defect | 15 | | making it
unable to process the payment request, the agency
| 16 | | shall notify the vendor requesting payment as soon as | 17 | | possible after
discovering the
defect pursuant to rules | 18 | | promulgated under Section 3-3; provided, however, that the | 19 | | notice for construction related bills or invoices must be | 20 | | given not later than 30 days after the bill or invoice was | 21 | | first submitted. The notice shall
identify the defect and | 22 | | any additional information
necessary to correct the | 23 | | defect. If one or more items on a construction related bill | 24 | | or invoice are disapproved, but not the entire bill or | 25 | | invoice, then the portion that is not disapproved shall be | 26 | | paid.
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| 1 | | (2) Where a State official or agency is late in payment | 2 | | of a
vendor's bill or invoice properly approved in | 3 | | accordance with this Act, and
different late payment terms | 4 | | are not reduced to writing as a contractual
agreement, the | 5 | | State official or agency shall automatically pay interest
| 6 | | penalties required by this Section amounting to $50 or more | 7 | | to the appropriate
vendor. Each agency shall be responsible | 8 | | for determining whether an interest
penalty
is
owed and
for | 9 | | paying the interest to the vendor. Except as provided in | 10 | | paragraph (4), an individual interest payment amounting to | 11 | | $5 or less shall not be paid by the State.
Interest due to | 12 | | a vendor that amounts to greater than $5 and less than $50 | 13 | | shall not be paid but shall be accrued until all interest | 14 | | due the vendor for all similar warrants exceeds $50, at | 15 | | which time the accrued interest shall be payable and | 16 | | interest will begin accruing again, except that interest | 17 | | accrued as of the end of the fiscal year that does not | 18 | | exceed $50 shall be payable at that time. In the event an
| 19 | | individual has paid a vendor for services in advance, the | 20 | | provisions of this
Section shall apply until payment is | 21 | | made to that individual.
| 22 | | (3) The provisions of Public Act 96-1501 reducing the | 23 | | interest rate on pharmacy claims under Article V of the | 24 | | Illinois Public Aid Code to 1.0% per month shall apply to | 25 | | any pharmacy bills for services and goods under Article V | 26 | | of the Illinois Public Aid Code received on or after the |
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| 1 | | date 60 days before January 25, 2011 (the effective date of | 2 | | Public Act 96-1501) except as provided under paragraph | 3 | | (1.05) of this Section. | 4 | | (4) Interest amounting to less than $5 shall not be | 5 | | paid by the State, except for claims (i) to the Department | 6 | | of Healthcare and Family Services or the Department of | 7 | | Human Services, (ii) pursuant to Article V of the Illinois | 8 | | Public Aid Code, the Covering ALL KIDS Health Insurance | 9 | | Act, or the Children's Health Insurance Program Act, and | 10 | | (iii) made (A) by pharmacies for prescriptive services or | 11 | | (B) by any federally qualified health center for | 12 | | prescriptive services or any other services. | 13 | | (Source: P.A. 96-555, eff. 8-18-09; 96-802, eff. 1-1-10; | 14 | | 96-959, eff. 7-1-10; 96-1000, eff. 7-2-10; 96-1501, eff. | 15 | | 1-25-11; 96-1530, eff. 2-16-11; 97-72, eff. 7-1-11; 97-74, eff. | 16 | | 6-30-11; 97-348, eff. 8-12-11; 97-813, eff. 7-13-12; 97-932, | 17 | | eff. 8-10-12; 97-1142, eff. 12-28-12.)
| 18 | | Section 99. Effective date. This Act takes effect upon | 19 | | becoming law.
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