Illinois General Assembly - Bill Status for HB5898
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 Bill Status of HB5898  95th General Assembly

Short Description:  PROMPT PAYMENT-BUDGET/PENALTY

House Sponsors
Rep. Robert F. Flider - Jack D. Franks - John E. Bradley - Patrick J Verschoore - Michael K. Smith, Thomas Holbrook, Daniel V. Beiser, Lisa M. Dugan, Careen M Gordon, Esther Golar, Donald L. Moffitt, Sidney H. Mathias, Mike Boland and Jack McGuire

Senate Sponsors
(Sen. Deanna Demuzio - David Luechtefeld - A. J. Wilhelmi - John M. Sullivan - M. Maggie Crotty, Christine Radogno, James T. Meeks, Jacqueline Y. Collins, Dan Kotowski, Michael W. Frerichs, William R. Haine, Linda Holmes, Gary Forby, Mattie Hunter, Kimberly A. Lightford and Ira I. Silverstein)

Last Action
DateChamber Action
  1/13/2009HouseSession Sine Die

Statutes Amended In Order of Appearance
15 ILCS 20/50-5was 15 ILCS 20/38
30 ILCS 540/3-2from Ch. 127, par. 132.403-2


Synopsis As Introduced
Amends the State Budget Law of the Civil Administrative Code of Illinois. Requires that the Governor's submitted budget include information concerning the amount and description of overdue bills and invoices under the State Prompt Payment Act. Amends the Prompt Payment Act. Accelerates the payment period from 60 days after the bill is submitted to 30 days after the bill is submitted. Increases the interest penalty from 1% to 1.5% if the payment is not made within 60 days after the bill is submitted. Effective immediately.

 Pension Note (Government Forecasting & Accountability)
 HB 5898 will not have any fiscal impact on any public pension fund or retirement system in Illinois.

 State Debt Impact Note (Government Forecasting & Accountability)
 HB 5898 would not change the amount of authorization for any type of State-issued or State-supported bond, and, therefore, would not affect the level of State indebtedness.

 Fiscal Note (Office of the Comptroller)
 The Office of the Comptroller is unable to project the future cost of this legislation since it would require information known at the agency level about the timing when invoices are properly submitted to an agency and when an agency in turn submits vouchers to the Office of the Comptroller for payment. Furthermore, the Office is not in a position to assume whether or not an agency will acknowledge late interest penalties are owed and submit the appropriate late-interest penalties are owed and submit the appropriate late-interest penalties allowable under the State Prompt Payment Act to the Office for payment. However, the Office can provide historical and current payments made pursuant to the State Prompt Payment Act. In fiscal year 2006, $1,124,638.30 was paid, while $2,954,274.87 was paid in fiscal year 2007. In fiscal year 2008, to date, late interest penalties of $20,590,233.09 have been submitted and paid by the following agencies: Healthcare and Family Services = $20,267,808.31; Central Management = $245,195.55; Transportation = $18,803.28; State Board of Education = $12,395.71; Human Services = $10,056.82; State Police = $8,652.01; Natural Resources = $7,115.60; Secretary of State = $4,225.22; Capital Development Board = $4,063.15; Agriculture = $2,953.98; IL Mathematics and Science Academy = $1,951.56; Supreme Court = $1,640.60; Corrections = $1,184.94; Revenue = $1,057.07; Commerce and Economic Opportunity = $951.61; Veterans' Affairs = $946.40; Attorney General = $517.73; Office of the State Fire Marshal = $216.54; State Attorney's Appellate Prosecutor = $191.46; Public Health = $85.47; Deaf and Hard of Hearing Commission = $80.04; Historic Preservation Agency = $56.76; Military Affairs = $55.60; Legislative Audit Commission = $27.68.

 Balanced Budget Note (Office of Management and Budget)
 HB 5898, if enacted into law, will lead to an unbalanced budget for Fiscal Year 2009 because revenue to support the legislation is not provided. Multiple State agencies would be negatively impacted if House Bill 5898 in enacted into law, including without limitation the Department of Healthcare and Family Services ("DHFS"), the Department of Transportation, and the Governor's Office of Management and Budget. As an example, DHFS estimates that the additional interest penalties imposed by House Bill 5898 would have a minimal impact of $20 million in Fiscal Year 2009. Alternatively, in order to comply with the 30 day deadline for DHFS alone, the State would require over $500 million in additional revenue Fiscal Year 2009. Finally, House Bill 5898 would place additional burden upon the Governor's Office of Management and Budget with respect to the compilation, storage, and production of data related to overdue bills and invoices.

Actions 
DateChamber Action
  2/15/2008HouseFiled with the Clerk by Rep. Robert F. Flider
  2/15/2008HouseFirst Reading
  2/15/2008HouseReferred to Rules Committee
  2/25/2008HouseAssigned to State Government Administration Committee
  3/5/2008HouseAdded Chief Co-Sponsor Rep. Jack D. Franks
  3/5/2008HouseDo Pass / Short Debate State Government Administration Committee; 013-000-000
  3/6/2008HousePlaced on Calendar 2nd Reading - Short Debate
  3/6/2008HouseAdded Chief Co-Sponsor Rep. John E. Bradley
  3/10/2008HousePension Note Filed
  3/10/2008HouseState Debt Impact Note Filed
  3/12/2008HouseFiscal Note Filed
  3/12/2008HouseBalanced Budget Note Filed
  3/13/2008HouseSecond Reading - Short Debate
  3/13/2008HousePlaced on Calendar Order of 3rd Reading - Short Debate
  4/1/2008HouseAdded Chief Co-Sponsor Rep. Patrick J Verschoore
  4/1/2008HouseAdded Chief Co-Sponsor Rep. Michael K. Smith
  4/1/2008HouseAdded Co-Sponsor Rep. Thomas Holbrook
  4/1/2008HouseAdded Co-Sponsor Rep. Daniel V. Beiser
  4/1/2008HouseAdded Co-Sponsor Rep. Lisa M. Dugan
  4/1/2008HouseAdded Co-Sponsor Rep. Careen M Gordon
  4/1/2008HouseAdded Co-Sponsor Rep. Esther Golar
  4/1/2008HouseAdded Co-Sponsor Rep. Donald L. Moffitt
  4/1/2008HouseAdded Co-Sponsor Rep. Sidney H. Mathias
  4/1/2008HouseRemoved from Short Debate Status
  4/1/2008HousePlaced on Calendar Order of 3rd Reading - Standard Debate
  4/1/2008HouseThird Reading - Standard Debate - Passed 101-003-004
  4/1/2008HouseAdded Co-Sponsor Rep. Mike Boland
  4/1/2008HouseAdded Co-Sponsor Rep. Jack McGuire
  4/2/2008SenateArrive in Senate
  4/2/2008SenatePlaced on Calendar Order of First Reading
  4/2/2008SenateChief Senate Sponsor Sen. Deanna Demuzio
  4/2/2008SenateFirst Reading
  4/2/2008SenateReferred to Rules
  4/8/2008SenateAdded as Alternate Chief Co-Sponsor Sen. David Luechtefeld
  5/15/2008SenateRule 2-10 Committee Deadline Established As May 22, 2008; Substantive House Bills Out of Committee
  8/11/2008SenateAdded as Alternate Co-Sponsor Sen. Christine Radogno
  11/19/2008SenateAdded as Alternate Chief Co-Sponsor Sen. A. J. Wilhelmi
  11/19/2008SenateAdded as Alternate Chief Co-Sponsor Sen. John M. Sullivan
  11/19/2008SenateAdded as Alternate Chief Co-Sponsor Sen. M. Maggie Crotty
  11/19/2008SenateAdded as Alternate Co-Sponsor Sen. James T. Meeks
  11/19/2008SenateAssigned to Executive
  11/19/2008SenateRule 2-10 Committee Deadline Established As January 13, 2009
  11/19/2008SenateRule 2-10 Third Reading Deadline Established As January 13, 2009
  11/20/2008SenateAdded as Alternate Co-Sponsor Sen. Jacqueline Y. Collins
  11/20/2008SenateAdded as Alternate Co-Sponsor Sen. Dan Kotowski
  11/20/2008SenateAdded as Alternate Co-Sponsor Sen. Michael W. Frerichs
  11/20/2008SenateAdded as Alternate Co-Sponsor Sen. William R. Haine
  11/20/2008SenateAdded as Alternate Co-Sponsor Sen. Linda Holmes
  11/20/2008SenateAdded as Alternate Co-Sponsor Sen. Gary Forby
  11/20/2008SenateAdded as Alternate Co-Sponsor Sen. Mattie Hunter
  11/20/2008SenateAdded as Alternate Co-Sponsor Sen. Kimberly A. Lightford
  11/20/2008SenateAdded as Alternate Co-Sponsor Sen. Ira I. Silverstein
  1/13/2009HouseSession Sine Die

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