State of Illinois
92nd General Assembly

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[ Introduced ][ Engrossed ][ House Amendment 001 ]
[ Senate Amendment 001 ]


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 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)  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  nor
10    Section  3  shall  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 voucher shall
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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