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Public Act 92-0384
HB1728 Enrolled LRB9205339REdv
AN ACT concerning prompt payment.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Prompt Payment Act is amended by
changing Sections 1, 3-2, 3-3, 4, and 5 and by adding Section
3-4 as follows:
(30 ILCS 540/1) (from Ch. 127, par. 132.401)
Sec. 1. This Act applies to any State official or agency
authorized to provide for payment from State funds, by virtue
of any appropriation of the General Assembly, for goods or
services furnished to the State.
Except as provided in Section 2.1, For purposes of this
Act, "goods or services furnished to the State" include but
are not limited to covered health care provided to eligible
members and their covered dependents in accordance with the
State Employees Group Insurance Act of 1971, including
coverage through a physician-owned health maintenance
organization under Section 6.1 of that Act.
For the purposes of this Act, "appropriate State official
or agency" is defined as the Director or Chief Executive or
his designee of that State agency or department or facility
of such agency or department. With respect to covered health
care provided to eligible members and their dependents in
accordance with the State Employees Group Insurance Act of
1971, "appropriate State official or agency" also includes an
administrator of a program of health benefits under that Act.
As used in this Act, "eligible member" means a member who
is eligible for health benefits under the State Employees
Group Insurance Act of 1971, and "member" and "dependent"
have the meanings ascribed to those terms in that Act.
As used in this Act, "a proper bill or invoice" means a
bill or invoice that includes the information necessary for
processing the payment as may be specified by a State agency
and in rules adopted in accordance with this Act.
(Source: P.A. 91-266, eff. 7-23-99.)
(30 ILCS 540/3-2) (from Ch. 127, par. 132.403-2)
Sec. 3-2. Beginning July 1, 1993, in any instance where
a State official or agency is late in payment of a vendor's
bill or invoice for goods or services furnished to the State,
as defined in Section 1, properly approved in accordance with
rules promulgated under Section 3-3, the State official or
agency shall pay interest to the vendor in accordance with
the following:
(1) Any bill approved for payment under this
Section must be paid or the payment issued mailed to the
payee within 60 days of receipt of a proper bill or
invoice the date of approval. If payment is not issued
made or mailed to the payee within this 60 day period, an
interest penalty of 1.0% of any amount approved and
unpaid shall be added for each month or fraction thereof
after the end of this 60 day period, until final payment
is made.
(1.1) A State agency shall review in a timely
manner each bill or invoice after its receipt. If the
State agency determines that the bill or invoice contains
a defect making it unable to process the payment request,
the agency shall notify the vendor requesting payment as
soon as possible after discovering the defect pursuant to
rules promulgated under Section 3-3. The notice shall
identify the defect and any additional information
necessary to correct the defect.
(2) Where a State official or agency is late in
payment of a vendor's bill or invoice properly approved
in accordance with this Act, and different late payment
terms are not reduced to writing as a contractual
agreement, the State official or agency shall
automatically pay interest penalties required by this
Section amounting to $50 or more to the appropriate
vendor. Each agency shall be responsible for determining
whether an interest penalty is owed and for paying the
interest to the vendor. For interest of at least $5 but
less than $50, the vendor must initiate a written request
for the interest penalty when such interest is due and
payable. 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. In the event an
individual has paid a vendor for services in advance, the
provisions of this Section shall apply until payment is
made to that individual.
(Source: P.A. 87-1232; 88-494.)
(30 ILCS 540/3-3) (from Ch. 127, par. 132.403-3)
Sec. 3-3. The State Comptroller and the Department of
Central Management Services shall jointly promulgate rules
and policies to govern the uniform application of this Act.
These rules and policies shall include procedures and time
frames for approving a bill or invoice from a vendor for
goods or services furnished to the State. These rules and
policies shall provide for procedures and time frames
applicable to payment plans as may be agreed upon between
State agencies and vendors. These rules and policies shall be
binding on all officials and agencies under this Act's
jurisdiction. These rules and policies may be made effective
no earlier than July 1, 1993.
(Source: P.A. 88-554, eff. 7-26-94; 89-21, eff. 7-1-95.)
(30 ILCS 540/3-4 new)
Sec. 3-4. The State Comptroller must specify the manner
in which State agencies shall record interest penalty
payments made under this Act. The State Comptroller may
require vouchers submitted for payment, including submission
by electronic or other means approved by the Comptroller, to
indicate the appropriate date from which interest penalties
may be calculated as required under this Act.
(30 ILCS 540/4) (from Ch. 127, par. 132.404)
Sec. 4. Nothing in this Act Neither Section 2 nor
Section 3 shall be construed to deprive the Comptroller of
his power to examine vouchers as specified in the State
Comptroller Act.
(Source: P.A. 86-1475.)
(30 ILCS 540/5) (from Ch. 127, par. 132.405)
Sec. 5. The State remittance invoice or voucher shall
indicate that payment of interest may be available for
failure to comply with this Act.
(Source: P.A. 85-1159.)
Section 99. Effective date. This Section takes effect
upon becoming law. Section 5 takes effect upon becoming law
solely for the purpose of allowing the State Comptroller and
the Department of Central Management Services to promulgate
rules for the implementation of this Act. Section 5 for all
other purposes takes effect July 1, 2002.
Passed in the General Assembly May 22, 2001.
Approved August 16, 2001.
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