HB5260 Engrossed LRB094 16231 RSP 51475 b

1     AN ACT concerning 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 changing Section 3-2 as follows:
6     (30 ILCS 540/3-2)  (from Ch. 127, par. 132.403-2)
7     Sec. 3-2. Beginning July 1, 1993, in any instance where a
8 State official or agency is late in payment of a vendor's bill
9 or invoice for goods or services furnished to the State, as
10 defined in Section 1, properly approved in accordance with
11 rules promulgated under Section 3-3, the State official or
12 agency shall pay interest to the vendor in accordance with the
13 following:
14         (1) Any bill approved for payment under this Section
15     must be paid or the payment issued to the payee within 60
16     days of receipt of a proper bill or invoice. If payment is
17     not issued to the payee within this 60 day period, an
18     interest penalty of 1.0% of any amount approved and unpaid
19     shall be added for each month or fraction thereof after the
20     end of this 60 day period, until final payment is made.
21         (1.1) A State agency shall review in a timely manner
22     each bill or invoice after its receipt. If the State agency
23     determines that the bill or invoice contains a defect
24     making it unable to process the payment request, the agency
25     shall notify the vendor requesting payment as soon as
26     possible after discovering the defect pursuant to rules
27     promulgated under Section 3-3; provided, however, that the
28     notice for construction related bills or invoices must be
29     given not later than 30 days after the bill or invoice was
30     first submitted or not later than 30 days after the receipt
31     of the goods or services, whichever is later. The notice
32     shall identify the defect and any additional information



HB5260 Engrossed - 2 - LRB094 16231 RSP 51475 b

1     necessary to correct the defect.
2         (2) Where a State official or agency is late in payment
3     of a vendor's bill or invoice properly approved in
4     accordance with this Act, and different late payment terms
5     are not reduced to writing as a contractual agreement, the
6     State official or agency shall automatically pay interest
7     penalties required by this Section amounting to $50 or more
8     to the appropriate vendor. Each agency shall be responsible
9     for determining whether an interest penalty is owed and for
10     paying the interest to the vendor. For interest of at least
11     $5 but less than $50, the vendor must initiate a written
12     request for the interest penalty when such interest is due
13     and payable. The Department of Central Management Services
14     and the State Comptroller shall jointly promulgate rules
15     establishing the conditions under which interest of less
16     than $5 may be claimed and paid. In the event an individual
17     has paid a vendor for services in advance, the provisions
18     of this Section shall apply until payment is made to that
19     individual.
20 (Source: P.A. 92-384, eff. 7-1-02.)