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|[ Introduced ]||[ Engrossed ]||[ Enrolled ]|
|[ Senate Amendment 001 ]|
92_HB1728ham001 LRB9205339TApcam 1 AMENDMENT TO HOUSE BILL 1728 2 AMENDMENT NO. . Amend House Bill 1728, by replacing 3 everything after the enacting clause with the following: 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 -2- LRB9205339TApcam 1 care provided to eligible members and their dependents in 2 accordance with the State Employees Group Insurance Act of 3 1971, "appropriate State official or agency" also includes an 4 administrator of a program of health benefits under that Act. 5 As used in this Act, "eligible member" means a member who 6 is eligible for health benefits under the State Employees 7 Group Insurance Act of 1971, and "member" and "dependent" 8 have the meanings ascribed to those terms in that Act. 9 As used in this Act, "a proper bill or invoice" means a 10 bill or invoice that includes the information necessary for 11 processing the payment as may be specified by a State agency 12 and in rules adopted in accordance with this Act. 13 (Source: P.A. 91-266, eff. 7-23-99.) 14 (30 ILCS 540/3-2) (from Ch. 127, par. 132.403-2) 15 Sec. 3-2. Beginning July 1, 1993, in any instance where 16 a State official or agency is late in payment of a vendor's 17 bill or invoice for goods or services furnished to the State, 18 as defined in Section 1, properly approved in accordance with 19 rules promulgated under Section 3-3, the State official or 20 agency shall pay interest to the vendor in accordance with 21 the following: 22 (1) Any bill approved for payment under this 23 Section must be paid or the payment issued mailedto the 24 payee within 60 days of receipt of a proper bill or 25 invoice the date of approval. If payment is not issued 26 made or mailedto the payee within this 60 day period, an 27 interest penalty of 1.0% of any amount approved and 28 unpaid shall be added for each month or fraction thereof 29 after the end of this 60 day period, until final payment 30 is made. 31 (1.1) Unless otherwise provided by rules adopted 32 under Section 3-3 of this Act, a State agency shall 33 review each bill or invoice within 21 days after its -3- LRB9205339TApcam 1 receipt. If the State agency determines that the bill or 2 invoice contains a defect, the agency shall notify the 3 vendor requesting payment within 21 days after receipt of 4 the bill or invoice. The notice shall identify the 5 defect and any additional information necessary to 6 correct the defect. If, within 5 business days after 7 receiving the notice, a vendor provides the information 8 necessary to correct the defect, then the required 9 payment date shall be 60 days from the date of the State 10 agency's original receipt of the bill or invoice. If the 11 vendor fails to provide the necessary information within 12 the 5 business days, the required payment date shall be 13 calculated 60 days after the agency receives a proper 14 bill or invoice. 15 (2) Where a State official or agency is late in 16 payment of a vendor's bill or invoice properly approved 17 in accordance with this Act, and different late payment 18 terms are not reduced to writing as a contractual 19 agreement, the State official or agency shall 20 automatically pay interest penalties required by this 21 Section amounting to $50 or more to the appropriate 22 vendor. Each agency shall be responsible for determining 23 whether an interest penalty is owed and for paying the 24 interest to the vendor. For interest of at least $5 but 25 less than $50, the vendor must initiate a written request 26 for the interest penalty when such interest is due and 27 payable. The Department of Central Management Services 28 and the State Comptroller shall jointly promulgate rules 29 establishing the conditions under which interest of less 30 than $5 may be claimed and paid. In the event an 31 individual has paid a vendor for services in advance, the 32 provisions of this Section shall apply until payment is 33 made to that individual. 34 (Source: P.A. 87-1232; 88-494.) -4- LRB9205339TApcam 1 (30 ILCS 540/3-3) (from Ch. 127, par. 132.403-3) 2 Sec. 3-3. The State Comptroller and the Department of 3 Central Management Services shall jointly promulgate rules 4 and policies to govern the uniform application of this Act. 5 These rules and policies shall include procedures and time 6 frames for approving a bill or invoice from a vendor for 7 goods or services furnished to the State. These rules and 8 policies shall provide for procedures and time frames 9 applicable to payment plans as may be agreed upon between 10 State agencies and vendors. These rules and policies shall be 11 binding on all officials and agencies under this Act's 12 jurisdiction. These rules and policies may be made effective 13 no earlier than July 1, 1993. 14 (Source: P.A. 88-554, eff. 7-26-94; 89-21, eff. 7-1-95.) 15 (30 ILCS 540/3-4 new) 16 Sec. 3-4. The State Comptroller must specify the manner 17 in which State agencies shall record interest penalty 18 payments made under this Act. The State Comptroller may 19 require vouchers submitted for payment, including submission 20 by electronic or other means approved by the Comptroller, to 21 indicate the appropriate date from which interest penalties 22 may be calculated as required under this Act. 23 (30 ILCS 540/4) (from Ch. 127, par. 132.404) 24 Sec. 4. Nothing in this Act Neither Section 2 nor25 Section 3shall be construed to deprive the Comptroller of 26 his power to examine vouchers as specified in the State 27 Comptroller Act. 28 (Source: P.A. 86-1475.) 29 (30 ILCS 540/5) (from Ch. 127, par. 132.405) 30 Sec. 5. The State remittance invoice or vouchershall 31 indicate that payment of interest may be available for -5- LRB9205339TApcam 1 failure to comply with this Act. 2 (Source: P.A. 85-1159.)".
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