093_SB0226eng
SB226 Engrossed LRB093 02039 SJM 02040 b
1 AN ACT concerning State finance.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The State Prompt Payment Act is amended by
5 adding Section 8 as follows:
6 (30 ILCS 540/8 new)
7 Sec. 8. Payment of vendor's debt service costs as a
8 result of late payment. If a State official or agency is more
9 than 60 days late in payment of a vendor's bill or invoice
10 for goods or services furnished to the State, properly
11 approved in accordance with rules adopted under Section 3-3,
12 and the vendor is forced to borrow money to make up for the
13 late payment from the State, in addition to any other payment
14 the State is required to make to the vendor, the State must
15 pay the vendor an amount equal to the vendor's debt service
16 costs related to the money the vendor borrowed as a result of
17 the late payment. The vendor's debt service costs can be no
18 greater than the prime rate less any interest penalties the
19 State is required to make to the vendor under other
20 provisions of this Act. For purposes of this Section, "prime
21 rate" means the prime rate as from time to time is publicly
22 announced by the largest commercial banking institution in
23 this State, measured in terms of total assets.