Section 900.90  When and How Vendors Must Request Interest

a)         Interest amounting to $50 or more need not be requested by a Vendor. Agencies are responsible for calculating and paying such interest and are to do so within a reasonable time.

b)         Interest amounting to $5 but less than $50 must be requested by the Vendor.

1)         The Vendor must submit a written statement to the appropriate State agency specifically requesting the State agency to pay an interest penalty to the Vendor.

2)         The statement must include a description of the original transaction, the Vendor's taxpayer identification number, the date of the Vendor's invoice, the invoice amount and the date the bill was presented to the Agency.

3)         The statement should, if possible, include the Vendor's invoice number, the voucher number, the appropriation account code, the obligation number, the exact name of the Vendor or payee as the name appeared on the payment warrant, an estimate of the date upon which the interest penalty begins to accrue and any other information reasonably needed by the State agency to verify the interest penalty payment.

4)         A request for the late payment interest penalty should be submitted within 90 days after the Date of Payment.

5)         Agencies are responsible for paying such interest and are to do so within a reasonable time.

6)         Upon written request by the Vendor, an agency must disclose to the Vendor the date upon which an interest penalty begins to accrue.

c)         Interest amounting to less than $5 will not be paid by the State, except in relation to a request that results from the application of the provisions of this Part to claims for prescription services submitted pursuant to Article V of the Public Aid Code [305 ILCS 5/Art. V], covering ALL KIDS Health Insurance Act [215 ILCS 170] and the Children's Health Insurance Program Act [215 ILCS 106] by a pharmacy to the Department of Healthcare and Family Services.

d)         Interest is to be calculated for each individual Vendor bill received. A determination of whether an interest penalty is owed is to be made for each individual bill and may not be based upon summing interest from two or more bills together.  If a State agency divides a Vendor bill into parts for payment from multiple funding sources, interest is to be calculated for each individual part in order to determine if interest is owed for that part of that bill.

(Source:  Amended at 31 Ill. Reg. 5751, effective March 29, 2007)