Full Text of HB4458 101st General Assembly
HB4458 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB4458 Introduced 2/3/2020, by Rep. Allen Skillicorn SYNOPSIS AS INTRODUCED: |
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Amends the State Prompt Payment Act. Provides that for State fiscal year 2021 and future fiscal years, any bill approved for payment under provisions concerning late payment interest must be paid or the payment issued to the payee within 90 days of receipt of a proper bill or invoice. Provides that if payment is not issued to the payee within this 90-day period, an interest penalty of 0.3% (currently, 1%) of any amount approved and unpaid shall be added for each month, or 0.01% (currently, 0.033%) of any amount approved and unpaid for each day, after the end of this 90-day period, until final payment is made. Makes conforming changes.
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| | A BILL FOR |
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| 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)
| 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, except a bill submitted under Article V | 15 | | of the Illinois Public Aid Code and except as provided | 16 | | under paragraph (1.05) or (1.07) of this Section, approved | 17 | | for payment under this Section must be paid
or the payment | 18 | | issued to the payee within 60 days of receipt
of a proper | 19 | | bill or invoice.
If payment is not issued to the payee | 20 | | within this 60-day
period, an
interest penalty of 1.0% of | 21 | | any amount approved and unpaid shall be added
for each | 22 | | month or fraction thereof after the end of this 60-day | 23 | | period,
until final payment is made. Any bill, except a |
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| 1 | | bill for pharmacy
or nursing facility services or goods, | 2 | | and except as provided under paragraph (1.05) or (1.07) of | 3 | | this Section, submitted under Article V of the Illinois | 4 | | Public Aid Code approved for payment under this Section | 5 | | must be paid
or the payment issued to the payee within 60 | 6 | | days after receipt
of a proper bill or invoice, and,
if | 7 | | payment is not issued to the payee within this 60-day
| 8 | | period, an
interest penalty of 2.0% of any amount approved | 9 | | and unpaid shall be added
for each month or fraction | 10 | | thereof after the end of this 60-day period,
until final | 11 | | payment is made. Any bill for pharmacy or nursing facility | 12 | | services or
goods submitted under Article V of the Illinois | 13 | | Public Aid
Code, except as provided under paragraph (1.05) | 14 | | or (1.07) of this Section, and approved for payment under | 15 | | this Section must be paid
or the payment issued to the | 16 | | payee within 60 days of
receipt of a proper bill or | 17 | | invoice. If payment is not
issued to the payee within this | 18 | | 60-day period, an interest
penalty of 1.0% of any amount | 19 | | approved and unpaid shall be
added for each month or | 20 | | fraction thereof after the end of this 60-day period, until | 21 | | final payment is made.
| 22 | | (1.05) For State fiscal year 2012 through State fiscal | 23 | | year 2020 and future fiscal years , any bill approved for | 24 | | payment under this Section must be paid
or the payment | 25 | | issued to the payee within 90 days of receipt
of a proper | 26 | | bill or invoice.
If payment is not issued to the payee |
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| 1 | | within this 90-day
period, an
interest penalty of 1.0% of | 2 | | any amount approved and unpaid shall be added
for each | 3 | | month, or 0.033% (one-thirtieth of one percent) of any | 4 | | amount approved and unpaid for each day, after the end of | 5 | | this 90-day period,
until final payment is made. | 6 | | (1.07) For State fiscal year 2021 and future fiscal | 7 | | years, any bill approved for payment under this Section | 8 | | must be paid or the payment issued to the payee within 90 | 9 | | days of receipt of a proper bill or invoice. If payment is | 10 | | not issued to the payee within this 90-day period, an | 11 | | interest penalty of 0.3% of any amount approved and unpaid | 12 | | shall be added for each month, or 0.01% (one-thirtieth of | 13 | | 0.3%) of any amount approved and unpaid for each day, after | 14 | | the end of this 90-day period, until final payment is made. | 15 | | (1.1) A State agency shall review in a timely manner | 16 | | each bill or
invoice after its receipt. If the
State agency | 17 | | determines that the bill or invoice contains a defect | 18 | | making it
unable to process the payment request, the agency
| 19 | | shall notify the vendor requesting payment as soon as | 20 | | possible after
discovering the
defect pursuant to rules | 21 | | promulgated under Section 3-3; provided, however, that the | 22 | | notice for construction related bills or invoices must be | 23 | | given not later than 30 days after the bill or invoice was | 24 | | first submitted. The notice shall
identify the defect and | 25 | | any additional information
necessary to correct the | 26 | | defect. If one or more items on a construction related bill |
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| 1 | | or invoice are disapproved, but not the entire bill or | 2 | | invoice, then the portion that is not disapproved shall be | 3 | | paid.
| 4 | | (2) Where a State official or agency is late in payment | 5 | | of a
vendor's bill or invoice properly approved in | 6 | | accordance with this Act, and
different late payment terms | 7 | | are not reduced to writing as a contractual
agreement, the | 8 | | State official or agency shall automatically pay interest
| 9 | | penalties required by this Section amounting to $50 or more | 10 | | to the appropriate
vendor. Each agency shall be responsible | 11 | | for determining whether an interest
penalty
is
owed and
for | 12 | | paying the interest to the vendor. Except as provided in | 13 | | paragraph (4), an individual interest payment amounting to | 14 | | $5 or less shall not be paid by the State.
Interest due to | 15 | | a vendor that amounts to greater than $5 and less than $50 | 16 | | shall not be paid but shall be accrued until all interest | 17 | | due the vendor for all similar warrants exceeds $50, at | 18 | | which time the accrued interest shall be payable and | 19 | | interest will begin accruing again, except that interest | 20 | | accrued as of the end of the fiscal year that does not | 21 | | exceed $50 shall be payable at that time. In the event an
| 22 | | individual has paid a vendor for services in advance, the | 23 | | provisions of this
Section shall apply until payment is | 24 | | made to that individual.
| 25 | | (3) The provisions of Public Act 96-1501 reducing the | 26 | | interest rate on pharmacy claims under Article V of the |
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| 1 | | Illinois Public Aid Code to 1.0% per month shall apply to | 2 | | any pharmacy bills for services and goods under Article V | 3 | | of the Illinois Public Aid Code received on or after the | 4 | | date 60 days before January 25, 2011 (the effective date of | 5 | | Public Act 96-1501) except as provided under paragraph | 6 | | (1.05) of this Section. | 7 | | (4) Interest amounting to less than $5 shall not be | 8 | | paid by the State, except for claims (i) to the Department | 9 | | of Healthcare and Family Services or the Department of | 10 | | Human Services, (ii) pursuant to Article V of the Illinois | 11 | | Public Aid Code, the Covering ALL KIDS Health Insurance | 12 | | Act, or the Children's Health Insurance Program Act, and | 13 | | (iii) made (A) by pharmacies for prescriptive services or | 14 | | (B) by any federally qualified health center for | 15 | | prescriptive services or any other services. | 16 | | Notwithstanding any provision to the contrary, interest | 17 | | may not be paid under this Act when: (1) a Chief Procurement | 18 | | Officer has voided the underlying contract for goods or | 19 | | services under Article 50 of the Illinois Procurement Code; or | 20 | | (2) the Auditor General is conducting a performance or program | 21 | | audit and the Comptroller has held or is holding for review a | 22 | | related contract or vouchers for payment of goods or services | 23 | | in the exercise of duties under Section 9 of the State | 24 | | Comptroller Act. In such event, interest shall not accrue | 25 | | during the pendency of the Auditor General's review. | 26 | | (Source: P.A. 100-1064, eff. 8-24-18.)
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