Illinois General Assembly - Full Text of HB3172
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Full Text of HB3172  102nd General Assembly

HB3172 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3172

 

Introduced 2/19/2021, by Rep. Michael Halpin

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 540/12 new

    Amends the State Prompt Payment Act. Provides for the Flexible Vendor Payment Program. Provides minimum requirements for the Program. Provides for a Program administrator. Provides for capital providers to the Program. Provides that the Program shall be accessible to any State vendor that wishes to enter into the Program. Provides that a vendor shall assign its interest in a voucher to an eligible capital provider, and select a timeframe upon which the capital provider shall pay to the vendor 100% percent of the payable voucher, minus any fees that may be associated with how soon the vendor wants to be paid. Specifies payment timeframe. Provides for the payment of invoices by the State to capital providers. Establishes a variable interest rate. Authorizes late payment agreements. Provides for the adoption of rules.


LRB102 12082 RJF 17419 b

 

 

A BILL FOR

 

HB3172LRB102 12082 RJF 17419 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Prompt Payment Act is amended by
5adding Section 12 as follows:
 
6    (30 ILCS 540/12 new)
7    Sec. 12. Flexible Vendor Payment Program.
8    (a) In addition to the program established under Section
98, the State Comptroller and the Department of Central
10Management Services are authorized to establish and implement
11a Flexible Vendor Payment Program as provided under this
12Section.
13    (b) At a minimum, the Program established under this
14Section shall provide or allow for the following:
15        (1) Allow vendors to manage the timing of payments
16    from the State to allow better management of their
17    business and cash flow.
18        (2) Allow the State to manage its payment cycle based
19    off of its own cash flow, without being a burden to its
20    vendors, or adding any unnecessary cost to its vendors.
21    The State shall also be able to maintain its current 90 day
22    payment cycle, before it begins incurring any interest
23    cost due to deferred vendor payments.

 

 

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1        (3) Allow the State to reduce its interest expense
2    with reduced interest rates.
3        (4) Create a more competitive bidding process for
4    State contracts.
5    (c) For purposes of establishing the Program under this
6Section, the Comptroller shall contract with an external
7entity, to be known as the Program administrator, who, in
8consultation with the Comptroller, shall be capable of
9implementing the Program and capable of establishing the
10criteria for the Program provided under subsection (b). The
11Program administrator shall implement the Program without any
12cash requirement from the State and only be compensated by a
13transaction fee to implement and oversee the Program.
14    (d) The Comptroller shall establish by rule the
15requirements that any capital provider to the Program must
16meet in order to participate in the Program. The Program shall
17allow for a capital provider to the Program to be affiliated
18with, or be the Program administrator of, the Program if the
19capital provider meets the minimum requirements to be a
20capital provider that are established by the Comptroller. The
21Comptroller is authorized to, but not required to, contract
22exclusively with one entity that has the capability of
23designing, implementing, and providing the required capital
24necessary to implement the Program under this Section.
25    (e) The Program shall be accessible to any State vendor
26that wishes to enter into the Program. A vendor shall assign

 

 

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1its interest in a voucher to an eligible capital provider, and
2select a timeframe upon which the capital provider shall pay
3to the vendor 100% percent of the payable voucher, minus any
4fees that may be associated with how soon the vendor wants to
5be paid. A vendor may select to be paid by the capital provider
6between 1 day and 90 days after an invoice is converted to a
7voucher.
8    (f) The State shall pay for invoices on a payment cycle
9that is suitable to the cash flow of the State or as may be
10otherwise established under State law. The State shall pay an
11interest rate on those invoices that shall be paid when the
12invoices are paid. Notwithstanding any other provision of law
13to the contrary, the interest rate shall be a variable
14interest rate tied to commercially published rates, and shall
15be lower than any other rate that may be charged for unpaid
16invoices under this Act. The Comptroller is authorized to
17enter into an agreement specifying late payment terms with
18eligible capital providers for the purposes of paying a bill
19or invoice under this Section.
20    (g) The Comptroller shall adopt all rules necessary for
21the implementation of the Program created under this Section.