Full Text of HB6849 096th General Assembly
HB6849 96TH GENERAL ASSEMBLY
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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 HB6849
Introduced 4/15/2010, by Rep. Robert W. Pritchard SYNOPSIS AS INTRODUCED: |
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30 ILCS 540/3-2 |
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30 ILCS 540/3-2.1 new |
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Amends the State Prompt Payment Act. Provides that interest
penalties amounting to $50 or more (instead of interest and penalties in any amount) shall be paid automatically. Provides that, for interest of at least
$5 but less than $50, the vendor must initiate a written
request for the interest penalty when the interest is due
and payable. Provides that the Department of Central Management Services
and the State Comptroller shall jointly promulgate rules
establishing the conditions under which interest of less
than $5 may be claimed and paid. Provides that the State Comptroller, in conjunction with the Department of Central Management Services, shall submit a report concerning the processing of interest penalty payments to the General Assembly no later than January 31, 2011. Provides that the report must include certain information. Effective 30 days after becoming law.
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| FISCAL NOTE ACT MAY APPLY | |
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A BILL FOR
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HB6849 |
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LRB096 21950 HLH 40078 b |
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| AN ACT concerning State government.
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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 and by adding Section 3-2.1 as follows:
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| (30 ILCS 540/3-2)
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| 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
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| agency shall pay interest to the vendor in accordance with the | 13 |
| following:
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| (1) Any bill, except a bill submitted under Article V | 15 |
| of the Illinois Public Aid Code, approved for payment under | 16 |
| this Section must be paid
or the payment issued to the | 17 |
| payee within 60 days of receipt
of a proper bill or | 18 |
| invoice.
If payment is not issued to the payee within this | 19 |
| 60 day
period, an
interest penalty of 1.0% of any amount | 20 |
| approved and unpaid shall be added
for each month or | 21 |
| fraction thereof after the end of this 60 day period,
until | 22 |
| final payment is made. Any bill submitted under Article V | 23 |
| of the Illinois Public Aid Code approved for payment under |
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HB6849 |
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LRB096 21950 HLH 40078 b |
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| this Section must be paid
or the payment issued to the | 2 |
| payee within 60 days after receipt
of a proper bill or | 3 |
| invoice, and,
if payment is not issued to the payee within | 4 |
| this 60-day
period, an
interest penalty of 2.0% of any | 5 |
| amount approved and unpaid shall be added
for each month or | 6 |
| fraction thereof after the end of this 60-day period,
until | 7 |
| final payment is made.
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| (1.1) A State agency shall review in a timely manner | 9 |
| each bill or
invoice after its receipt. If the
State agency | 10 |
| determines that the bill or invoice contains a defect | 11 |
| making it
unable to process the payment request, the agency
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| shall notify the vendor requesting payment as soon as | 13 |
| possible after
discovering the
defect pursuant to rules | 14 |
| promulgated under Section 3-3; provided, however, that the | 15 |
| notice for construction related bills or invoices must be | 16 |
| given not later than 30 days after the bill or invoice was | 17 |
| first submitted. The notice shall
identify the defect and | 18 |
| any additional information
necessary to correct the | 19 |
| defect. If one or more items on a construction related bill | 20 |
| or invoice are disapproved, but not the entire bill or | 21 |
| invoice, then the portion that is not disapproved shall be | 22 |
| paid.
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| (2) Where a State official or agency is late in payment | 24 |
| of a
vendor's bill or invoice properly approved in | 25 |
| accordance with this Act, and
different late payment terms | 26 |
| are not reduced to writing as a contractual
agreement, the |
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HB6849 |
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LRB096 21950 HLH 40078 b |
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| State official or agency shall automatically pay interest
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| penalties required by this Section amounting to $50 or more | 3 |
| to the appropriate
vendor. Each agency shall be responsible | 4 |
| for determining whether an interest
penalty
is
owed and
for | 5 |
| paying the interest to the vendor.
For interest of at least
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| $5 but less than $50, the vendor must initiate a written
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| request for the interest penalty when such interest is due
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| and payable. The Department of Central Management Services
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| and the State Comptroller shall jointly promulgate rules
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| establishing the conditions under which interest of less
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| than $5 may be claimed and paid. In the event an
individual | 12 |
| has paid a vendor for services in advance, the provisions | 13 |
| of this
Section shall apply until payment is made to that | 14 |
| individual.
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| (Source: P.A. 96-555, eff. 8-18-09; 96-802, eff. 1-1-10; | 16 |
| revised 11-25-09.)
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| (30 ILCS 540/3-2.1 new) | 18 |
| Sec. 3-2.1. Interest penalty report. The State | 19 |
| Comptroller, in conjunction with the Department of Central | 20 |
| Management Services, shall submit a report to the General | 21 |
| Assembly no later than January 31, 2011. The report shall | 22 |
| include the following information, which shall be broken down | 23 |
| by State agency and vendor: | 24 |
| (1) the number and total dollar amount of interest | 25 |
| penalty payment vouchers submitted to the Comptroller's |
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HB6849 |
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LRB096 21950 HLH 40078 b |
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| office on or after August 18, 2009 and before January 1, | 2 |
| 2011 for interest payments of less than $5; | 3 |
| (2) the number and total dollar amount of interest | 4 |
| penalty payment vouchers submitted to the Comptroller's | 5 |
| office on or after August 18, 2009 and before January 1, | 6 |
| 2011 for interest payments of at least $5 but less than | 7 |
| $50; the report shall indicate the number and total dollar | 8 |
| amount of (i) those paid automatically and (ii) those | 9 |
| initiated by written request of the vendor; and | 10 |
| (3) the aggregate cost of processing the interest | 11 |
| penalty payment vouchers referenced in items (1) and (2). | 12 |
| The report shall also include recommendations regarding | 13 |
| establishing a minimum threshold for payment of interest | 14 |
| penalties to vendors and increased efficiencies, including, | 15 |
| but not limited to, consolidation of multiple payments to the | 16 |
| same vendor.
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| Section 99. Effective date. This Act takes effect 30 days | 18 |
| after becoming law.
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