Rep. Mike Bost

Filed: 3/1/2011

 

 


 

 


 
09700HB1156ham001LRB097 06161 RLJ 51767 a

1
AMENDMENT TO HOUSE BILL 1156

2    AMENDMENT NO. ______. Amend House Bill 1156 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The State Prompt Payment Act is amended by
5changing Section 3-2 as follows:
 
6    (30 ILCS 540/3-2)
7    Sec. 3-2. Beginning July 1, 1993, in any instance where a
8State official or agency is late in payment of a vendor's bill
9or invoice for goods or services furnished to the State, as
10defined in Section 1, properly approved in accordance with
11rules promulgated under Section 3-3, the State official or
12agency shall pay interest to the vendor in accordance with the
13following:
14        (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

 

 

09700HB1156ham001- 2 -LRB097 06161 RLJ 51767 a

1    payee within 60 days of receipt of a proper bill or
2    invoice. If payment is not issued to the payee within this
3    60-day 60 day period, an interest penalty of 1.0% of any
4    amount approved and unpaid shall be added for each month or
5    fraction thereof after the end of this 60-day 60 day
6    period, until final payment is made. Any bill, except a
7    bill for pharmacy or nursing facility services or goods,
8    submitted under Article V of the Illinois Public Aid Code
9    approved for payment under this Section must be paid or the
10    payment issued to the payee within 60 days after receipt of
11    a proper bill or invoice, and, if payment is not issued to
12    the payee within this 60-day period, an interest penalty of
13    2.0% of any amount approved and unpaid shall be added for
14    each month or fraction thereof after the end of this 60-day
15    period, until final payment is made. Any bill for pharmacy
16    or nursing facility services or goods submitted under
17    Article V of the Illinois Public Aid Code and , approved for
18    payment under this Section must be paid or the payment
19    issued to the payee within 60 days of receipt of a proper
20    bill or invoice. If payment is not issued to the payee
21    within this 60-day 60 day period, an interest penalty of
22    1.0% of any amount approved and unpaid shall be added for
23    each month or fraction thereof after the end of this 60-day
24    60 day period, until final payment is made.
25        (1.1) A State agency shall review in a timely manner
26    each bill or invoice after its receipt. If the State agency

 

 

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1    determines that the bill or invoice contains a defect
2    making it unable to process the payment request, the agency
3    shall notify the vendor requesting payment as soon as
4    possible after discovering the defect pursuant to rules
5    promulgated under Section 3-3; provided, however, that the
6    notice for construction related bills or invoices must be
7    given not later than 30 days after the bill or invoice was
8    first submitted. The notice shall identify the defect and
9    any additional information necessary to correct the
10    defect. If one or more items on a construction related bill
11    or invoice are disapproved, but not the entire bill or
12    invoice, then the portion that is not disapproved shall be
13    paid.
14        (2) Where a State official or agency is late in payment
15    of a vendor's bill or invoice properly approved in
16    accordance with this Act, and different late payment terms
17    are not reduced to writing as a contractual agreement, the
18    State official or agency shall automatically pay interest
19    penalties required by this Section amounting to $50 or more
20    to the appropriate vendor. Each agency shall be responsible
21    for determining whether an interest penalty is owed and for
22    paying the interest to the vendor. Interest due to a vendor
23    that amounts to less than $50 shall not be paid but shall
24    be accrued until all interest due the vendor for all
25    similar warrants exceeds $50, at which time the accrued
26    interest shall be payable and interest will begin accruing

 

 

09700HB1156ham001- 4 -LRB097 06161 RLJ 51767 a

1    again. Interest , except that interest accrued as of the
2    end of the fiscal year that does not exceed $50 shall be
3    payable at that time only if the interest accrued is $5 or
4    more. In the event an individual has paid a vendor for
5    services in advance, the provisions of this Section shall
6    apply until payment is made to that individual.
7        (3) The provisions of Public Act 96-1501 this
8    amendatory Act of the 96th General Assembly reducing the
9    interest rate on pharmacy claims under Article V of the
10    Illinois Public Aid Code to 1.0% per month shall apply to
11    any pharmacy bills for services and goods under Article V
12    of the Illinois Public Aid Code received on or after the
13    date 60 days before January 25, 2011 (the effective date of
14    Public Act 96-1501) this amendatory Act of the 96th General
15    Assembly.
16(Source: P.A. 96-555, eff. 8-18-09; 96-802, eff. 1-1-10;
1796-959, eff. 7-1-10; 96-1000, eff. 7-2-10; 96-1501, eff.
181-25-11; 96-1530, eff. 2-16-11; revised 2-22-11.)".