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|[ Introduced ]||[ Engrossed ]||[ House Amendment 001 ]|
|[ Senate Amendment 001 ]|
92_HB1728enr HB1728 Enrolled LRB9205339REdv 1 AN ACT concerning prompt payment. 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 Sections 1, 3-2, 3-3, 4, and 5 and by adding Section 6 3-4 as follows: 7 (30 ILCS 540/1) (from Ch. 127, par. 132.401) 8 Sec. 1. This Act applies to any State official or agency 9 authorized to provide for payment from State funds, by virtue 10 of any appropriation of the General Assembly, for goods or 11 services furnished to the State. 12
Except as provided in Section 2.1,For purposes of this 13 Act, "goods or services furnished to the State" include but 14 are not limited to covered health care provided to eligible 15 members and their covered dependents in accordance with the 16 State Employees Group Insurance Act of 1971, including 17 coverage through a physician-owned health maintenance 18 organization under Section 6.1 of that Act. 19 For the purposes of this Act, "appropriate State official 20 or agency" is defined as the Director or Chief Executive or 21 his designee of that State agency or department or facility 22 of such agency or department. With respect to covered health 23 care provided to eligible members and their dependents in 24 accordance with the State Employees Group Insurance Act of 25 1971, "appropriate State official or agency" also includes an 26 administrator of a program of health benefits under that Act. 27 As used in this Act, "eligible member" means a member who 28 is eligible for health benefits under the State Employees 29 Group Insurance Act of 1971, and "member" and "dependent" 30 have the meanings ascribed to those terms in that Act. 31 As used in this Act, "a proper bill or invoice" means a HB1728 Enrolled -2- LRB9205339REdv 1 bill or invoice that includes the information necessary for 2 processing the payment as may be specified by a State agency 3 and in rules adopted in accordance with this Act. 4 (Source: P.A. 91-266, eff. 7-23-99.) 5 (30 ILCS 540/3-2) (from Ch. 127, par. 132.403-2) 6 Sec. 3-2. Beginning July 1, 1993, in any instance where 7 a State official or agency is late in payment of a vendor's 8 bill or invoice for goods or services furnished to the State, 9 as defined in Section 1, properly approved in accordance with 10 rules promulgated under Section 3-3, the State official or 11 agency shall pay interest to the vendor in accordance with 12 the following: 13 (1) Any bill approved for payment under this 14 Section must be paid or the payment issued mailedto the 15 payee within 60 days of receipt of a proper bill or 16 invoice the date of approval. If payment is not issued 17 made or mailedto the payee within this 60 day period, an 18 interest penalty of 1.0% of any amount approved and 19 unpaid shall be added for each month or fraction thereof 20 after the end of this 60 day period, until final payment 21 is made. 22 (1.1) A State agency shall review in a timely 23 manner each bill or invoice after its receipt. If the 24 State agency determines that the bill or invoice contains 25 a defect making it unable to process the payment request, 26 the agency shall notify the vendor requesting payment as 27 soon as possible after discovering the defect pursuant to 28 rules promulgated under Section 3-3. The notice shall 29 identify the defect and any additional information 30 necessary to correct the defect. 31 (2) Where a State official or agency is late in 32 payment of a vendor's bill or invoice properly approved 33 in accordance with this Act, and different late payment HB1728 Enrolled -3- LRB9205339REdv 1 terms are not reduced to writing as a contractual 2 agreement, the State official or agency shall 3 automatically pay interest penalties required by this 4 Section amounting to $50 or more to the appropriate 5 vendor. Each agency shall be responsible for determining 6 whether an interest penalty is owed and for paying the 7 interest to the vendor. For interest of at least $5 but 8 less than $50, the vendor must initiate a written request 9 for the interest penalty when such interest is due and 10 payable. The Department of Central Management Services 11 and the State Comptroller shall jointly promulgate rules 12 establishing the conditions under which interest of less 13 than $5 may be claimed and paid. In the event an 14 individual has paid a vendor for services in advance, the 15 provisions of this Section shall apply until payment is 16 made to that individual. 17 (Source: P.A. 87-1232; 88-494.) 18 (30 ILCS 540/3-3) (from Ch. 127, par. 132.403-3) 19 Sec. 3-3. The State Comptroller and the Department of 20 Central Management Services shall jointly promulgate rules 21 and policies to govern the uniform application of this Act. 22 These rules and policies shall include procedures and time 23 frames for approving a bill or invoice from a vendor for 24 goods or services furnished to the State. These rules and 25 policies shall provide for procedures and time frames 26 applicable to payment plans as may be agreed upon between 27 State agencies and vendors. These rules and policies shall be 28 binding on all officials and agencies under this Act's 29 jurisdiction. These rules and policies may be made effective 30 no earlier than July 1, 1993. 31 (Source: P.A. 88-554, eff. 7-26-94; 89-21, eff. 7-1-95.) 32 (30 ILCS 540/3-4 new) HB1728 Enrolled -4- LRB9205339REdv 1 Sec. 3-4. The State Comptroller must specify the manner 2 in which State agencies shall record interest penalty 3 payments made under this Act. The State Comptroller may 4 require vouchers submitted for payment, including submission 5 by electronic or other means approved by the Comptroller, to 6 indicate the appropriate date from which interest penalties 7 may be calculated as required under this Act. 8 (30 ILCS 540/4) (from Ch. 127, par. 132.404) 9 Sec. 4. Nothing in this Act Neither Section 2 nor10 Section 3shall be construed to deprive the Comptroller of 11 his power to examine vouchers as specified in the State 12 Comptroller Act. 13 (Source: P.A. 86-1475.) 14 (30 ILCS 540/5) (from Ch. 127, par. 132.405) 15 Sec. 5. The State remittance invoice or vouchershall 16 indicate that payment of interest may be available for 17 failure to comply with this Act. 18 (Source: P.A. 85-1159.) 19 Section 99. Effective date. This Section takes effect 20 upon becoming law. Section 5 takes effect upon becoming law 21 solely for the purpose of allowing the State Comptroller and 22 the Department of Central Management Services to promulgate 23 rules for the implementation of this Act. Section 5 for all 24 other purposes takes effect July 1, 2002.
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