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91_HB4023
LRB9112018SMdvA
1 AN ACT to amend the State Prompt Payment Act by changing
2 Section 3-2.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The State Prompt Payment Act is amended by
6 changing Section 3-2 as follows:
7 (30 ILCS 540/3-2) (from Ch. 127, par. 132.403-2)
8 Sec. 3-2. Beginning July 1, 1993, in any instance where
9 a State official or agency is late in payment of a vendor's
10 bill or invoice for goods or services furnished to the State,
11 as defined in Section 1, properly approved in accordance with
12 rules promulgated under Section 3-3, the State official or
13 agency shall pay interest to the vendor in accordance with
14 the following:
15 (1) Any bill approved for payment under this
16 Section must be paid or the payment mailed to the payee
17 within 60 days of the date of approval. If payment is
18 not made or mailed to the payee within this 60 day
19 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,
22 until final payment is made.
23 (2) Where a State official or agency is late in
24 payment of a vendor's bill or invoice properly approved
25 in accordance with this Act, and different late payment
26 terms are not reduced to writing as a contractual
27 agreement, the State official or agency shall
28 automatically pay interest penalties required by this
29 Section amounting to $50 or more to the appropriate
30 vendor. For interest of at least $5 but less than $50,
31 the vendor must initiate a written request for the
-2- LRB9112018SMdvA
1 interest penalty when such interest is due and payable.
2 The Department of Central Management Services and the
3 State Comptroller shall jointly promulgate rules
4 establishing the conditions under which interest of less
5 than $5 may be claimed and paid. In the event an
6 individual has paid a vendor for services in advance, the
7 provisions of this Section shall apply until payment is
8 made to that individual.
9 This Section applies, without limitation, to all payments
10 made by a State official or agency, including any payments
11 made in whole or in part from federal funds.
12 (Source: P.A. 87-1232; 88-494.)
13 Section 99. Effective date. This Act takes effect upon
14 becoming law.