State of Illinois
92nd General Assembly

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[ Introduced ][ Enrolled ][ House Amendment 001 ]
[ Senate Amendment 001 ]


HB1728 Engrossed                               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 Engrossed            -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 mailed to  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 mailed to 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)  Unless otherwise provided  by  rules  adopted
23        under  Section  3-3  of  this  Act,  a State agency shall
24        review each bill or invoice  within  21  days  after  its
25        receipt.  If the State agency determines that the bill or
26        invoice  contains  a  defect, the agency shall notify the
27        vendor requesting payment within 21 days after receipt of
28        the bill or invoice.    The  notice  shall  identify  the
29        defect   and  any  additional  information  necessary  to
30        correct the defect. If,  within  5  business  days  after
31        receiving  the  notice, a vendor provides the information
32        necessary  to  correct  the  defect,  then  the  required
33        payment date shall be 60 days from the date of the  State
HB1728 Engrossed            -3-                LRB9205339REdv
 1        agency's original receipt of the bill or invoice.  If the
 2        vendor  fails to provide the necessary information within
 3        the 5 business days, the required payment date  shall  be
 4        calculated  60  days  after  the agency receives a proper
 5        bill or invoice.
 6             (2)  Where a State official or  agency  is  late  in
 7        payment  of  a vendor's bill or invoice properly approved
 8        in accordance with this Act, and different  late  payment
 9        terms  are  not  reduced  to  writing  as  a  contractual
10        agreement,   the   State   official   or   agency   shall
11        automatically  pay  interest  penalties  required by this
12        Section amounting to  $50  or  more  to  the  appropriate
13        vendor.  Each agency shall be responsible for determining
14        whether  an  interest  penalty is owed and for paying the
15        interest to the vendor. For interest of at least  $5  but
16        less than $50, the vendor must initiate a written request
17        for  the  interest  penalty when such interest is due and
18        payable.  The Department of Central  Management  Services
19        and  the State Comptroller shall jointly promulgate rules
20        establishing the conditions under which interest of  less
21        than  $5  may  be  claimed  and  paid.   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    (Source: P.A. 87-1232; 88-494.)

26        (30 ILCS 540/3-3) (from Ch. 127, par. 132.403-3)
27        Sec.  3-3.  The  State  Comptroller and the Department of
28    Central Management Services shall  jointly  promulgate  rules
29    and  policies  to govern the uniform application of this Act.
30    These rules and policies shall include  procedures  and  time
31    frames  for  approving  a  bill  or invoice from a vendor for
32    goods or services furnished to the State.   These  rules  and
33    policies   shall  provide  for  procedures  and  time  frames
HB1728 Engrossed            -4-                LRB9205339REdv
 1    applicable to payment plans as may  be  agreed  upon  between
 2    State agencies and vendors. These rules and policies shall be
 3    binding  on  all  officials  and  agencies  under  this Act's
 4    jurisdiction.  These rules and policies may be made effective
 5    no earlier than July 1, 1993.
 6    (Source: P.A. 88-554, eff. 7-26-94; 89-21, eff. 7-1-95.)

 7        (30 ILCS 540/3-4 new)
 8        Sec. 3-4.  The State Comptroller must specify the  manner
 9    in   which  State  agencies  shall  record  interest  penalty
10    payments made under this  Act.   The  State  Comptroller  may
11    require  vouchers submitted for payment, including submission
12    by electronic or other means approved by the Comptroller,  to
13    indicate  the  appropriate date from which interest penalties
14    may be calculated as required under this Act.

15        (30 ILCS 540/4) (from Ch. 127, par. 132.404)
16        Sec. 4.  Nothing  in  this  Act  Neither  Section  2  nor
17    Section  3  shall  be construed to deprive the Comptroller of
18    his power to examine  vouchers  as  specified  in  the  State
19    Comptroller Act.
20    (Source: P.A. 86-1475.)

21        (30 ILCS 540/5) (from Ch. 127, par. 132.405)
22        Sec.  5.  The  State  remittance invoice or voucher shall
23    indicate that  payment  of  interest  may  be  available  for
24    failure to comply with this Act.
25    (Source: P.A. 85-1159.)

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