94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB3823


 
Introduced 2/25/2005, by Rep. Marlow H. Colvin
 
SYNOPSIS AS INTRODUCED:
 		














30 ILCS 540/3-2
  from Ch. 127, par. 132.403-2







    Amends the State Prompt Payment Act. Provides that in computing interest, the amount of the bill or invoice means the aggregate amount submitted by the vendor in one calendar day, whether electronically or on paper, and does not mean the items on the bill or invoice taken individually. Effective immediately.
















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FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











HB3823

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    AN ACT concerning State government.

 
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    Be it enacted by the People of the State of Illinois,
 
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represented in the General Assembly:


 
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    Section 5. The State Prompt Payment Act is amended  by 
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changing Section 3-2 as follows:
 



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    (30 ILCS 540/3-2)  (from Ch. 127, par. 132.403-2)



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    Sec. 3-2. Beginning July 1, 1993, in any instance where a 
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State official or
agency is late in payment of a vendor's bill 
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or invoice for goods or services
furnished to the State, as 
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defined in Section 1, properly approved in
accordance with 
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rules promulgated under Section 3-3, the State official or

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agency shall pay interest to the vendor in accordance with the 
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following:


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        (1) Any bill approved for payment under this Section 
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    must be paid
or the payment issued to the payee within 60 
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    days of receipt
of a proper bill or invoice.
If payment is 
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    not issued to the payee within this 60 day
period, an

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    interest penalty of 1.0% of any amount approved and unpaid 
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    shall be added
for each month or fraction thereof after the 
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    end of this 60 day period,
until final payment is made.


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        (1.1) A State agency shall review in a timely manner 
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    each bill or
invoice after its receipt.  If the
State agency 
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    determines that the bill or invoice contains a defect 
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    making it
unable to process the payment request, the agency

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    shall notify the vendor requesting payment as soon as 
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    possible after
discovering the
defect pursuant to rules 
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    promulgated under Section 3-3.  The notice shall
identify 
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    the defect and any additional information
necessary to 
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    correct the defect.


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        (2) Where a State official or agency is late in payment 
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    of a
vendor's bill or invoice properly approved in 
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    accordance with this Act, and
different late payment terms 
 


 






HB3823
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    are not reduced to writing as a contractual
agreement, the 
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    State official or agency shall automatically pay interest

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    penalties required by this Section amounting to $50 or more 
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    to the appropriate
vendor.  Each agency shall be responsible 
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    for determining whether an interest
penalty
is
owed and
for 
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    paying the interest to the vendor.
For interest of at least 
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    $5 but less than $50, the vendor must
initiate a written 
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    request for the interest penalty when such interest is due

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    and payable.  The Department of Central Management Services 
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    and the State
Comptroller shall jointly promulgate rules 
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    establishing the conditions under
which interest of less 
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    than $5 may be claimed and paid.  In the event an
individual 
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    has paid a vendor for services in advance, the provisions 
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    of this
Section shall apply until payment is made to that 
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    individual.

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    In computing interest under this Section, the amount of a 
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bill or invoice means the aggregate amount submitted by the 
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vendor in one calendar day, whether electronically or on paper, 
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and does not mean the items on the bill or invoice taken 
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individually.

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(Source: P.A. 92-384, eff. 7-1-02.)


 
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    Section 99. Effective date. This Act takes effect upon 
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becoming law.