State of Illinois
92nd General Assembly

   [ Search ]   [ PDF text ]   [ Legislation ]   
[ Home ]   [ Back ]   [ Bottom ]

[ Introduced ][ Engrossed ][ Enrolled ]
[ Senate Amendment 001 ]




 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 mailed to 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 mailed to 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 nor
25    Section 3 shall 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  voucher  shall
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.)".

[ Top ]