HB5260 Engrossed

LRB094 16231 RSP 51475 b






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    AN ACT concerning finance.

 
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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 
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changing Section 3-2 as follows:
 



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    (30 ILCS 540/3-2)  (from Ch. 127, par. 132.403-2)



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    Sec. 3-2. Beginning July 1, 1993, in any instance where a 
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State official or
agency is late in payment of a vendor's bill 
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or invoice for goods or services
furnished to the State, as 
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defined in Section 1, properly approved in
accordance with 
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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 
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following:


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        (1) Any bill approved for payment under this Section 
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    must be paid
or the payment issued to the payee within 60 
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    days of receipt
of a proper bill or invoice.
If payment is 
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    not issued to the payee within this 60 day
period, an

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    interest penalty of 1.0% of any amount approved and unpaid 
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    shall be added
for each month or fraction thereof after the 
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    end of this 60 day period,
until final payment is made.


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        (1.1) A State agency shall review in a timely manner 
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    each bill or
invoice after its receipt.  If the
State agency 
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    determines that the bill or invoice contains a defect 
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    making it
unable to process the payment request, the agency

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    shall notify the vendor requesting payment as soon as 
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    possible after
discovering the
defect pursuant to rules 
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    promulgated under Section 3-3; provided, however, that the 
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    notice for construction related bills or invoices must be 
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    given not later than 30 days after the bill or invoice was 
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    first submitted or not later than 30 days after the receipt 
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    of the goods or services, whichever is later.  The notice 
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    shall
identify the defect and any additional information

 


 






HB5260 Engrossed
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LRB094 16231 RSP 51475 b




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    necessary to correct the defect.


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        (2) Where a State official or agency is late in payment 
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    of a
vendor's bill or invoice properly approved in 
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    accordance with this Act, and
different late payment terms 
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    are not reduced to writing as a contractual
agreement, the 
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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 
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    to the appropriate
vendor.  Each agency shall be responsible 
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    for determining whether an interest
penalty
is
owed and
for 
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    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 
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    has paid a vendor for services in advance, the provisions 
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    of this
Section shall apply until payment is made to that 
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    individual.

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(Source: P.A. 92-384, eff. 7-1-02.)