State of Illinois
91st General Assembly
Legislation

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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.

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