State Government Administration Committee

Filed: 2/15/2006





09400HB5260ham001 LRB094 16231 RSP 55531 a


2     AMENDMENT NO. ______. Amend House Bill 5260 by replacing
3 everything after the enacting clause with the following:
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



09400HB5260ham001 - 2 - LRB094 16231 RSP 55531 a

1     shall notify the vendor requesting payment as soon as
2     possible after discovering the defect pursuant to rules
3     promulgated under Section 3-3; provided, however, that the
4     notice for construction related bills or invoices must be
5     given not later than 30 days after the bill or invoice was
6     first submitted or not later than 30 days after the receipt
7     of the goods or services, whichever is later. The notice
8     shall identify the defect and any additional information
9     necessary to correct the defect.
10         (2) Where a State official or agency is late in payment
11     of a vendor's bill or invoice properly approved in
12     accordance with this Act, and different late payment terms
13     are not reduced to writing as a contractual agreement, the
14     State official or agency shall automatically pay interest
15     penalties required by this Section amounting to $50 or more
16     to the appropriate vendor. Each agency shall be responsible
17     for determining whether an interest penalty is owed and for
18     paying the interest to the vendor. For interest of at least
19     $5 but less than $50, the vendor must initiate a written
20     request for the interest penalty when such interest is due
21     and payable. The Department of Central Management Services
22     and the State Comptroller shall jointly promulgate rules
23     establishing the conditions under which interest of less
24     than $5 may be claimed and paid. In the event an individual
25     has paid a vendor for services in advance, the provisions
26     of this Section shall apply until payment is made to that
27     individual.
28 (Source: P.A. 92-384, eff. 7-1-02.)".