SB1472 Engrossed LRB096 09376 JDS 19533 b

1     AN ACT concerning finance.
 
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 Section 3-2 as follows:
 
6     (30 ILCS 540/3-2)  (from Ch. 127, par. 132.403-2)
7     Sec. 3-2. Beginning July 1, 1993, in any instance where a
8 State official or agency is late in payment of a vendor's bill
9 or invoice for goods or services furnished to the State, as
10 defined in Section 1, properly approved in accordance with
11 rules promulgated under Section 3-3, the State official or
12 agency shall pay interest to the vendor in accordance with the
13 following:
14         (1) Any bill approved for payment under this Section
15     must be paid or the payment issued to the payee within 60
16     days of receipt of a proper bill or invoice. If payment is
17     not issued to the payee within this 60 day period, an
18     interest penalty of 1.0% of any amount approved and unpaid
19     shall be added for each month or fraction thereof after the
20     end of this 60 day period, until final payment is made.
21         (1.1) A State agency shall review in a timely manner
22     each bill or invoice after its receipt. If the State agency
23     determines that the bill or invoice contains a defect

 

 

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1     making it unable to process the payment request, the agency
2     shall notify the vendor requesting payment as soon as
3     possible after discovering the defect pursuant to rules
4     promulgated under Section 3-3; provided, however, that the
5     notice for construction related bills or invoices must be
6     given not later than 30 days after the bill or invoice was
7     first submitted. The notice shall identify the defect and
8     any additional information necessary to correct the
9     defect. If one or more items on a construction related bill
10     or invoice are disapproved, but not the entire bill or
11     invoice, then the portion that is not disapproved shall be
12     paid.
13         (2) Where a State official or agency is late in payment
14     of a vendor's bill or invoice properly approved in
15     accordance with this Act, and different late payment terms
16     are not reduced to writing as a contractual agreement, the
17     State official or agency shall automatically pay interest
18     penalties required by this Section amounting to $50 or more
19     to the appropriate vendor. Each agency shall be responsible
20     for determining whether an interest penalty is owed and for
21     paying the interest to the vendor. For interest of at least
22     $5 but less than $50, the vendor must initiate a written
23     request for the interest penalty when such interest is due
24     and payable. The Department of Central Management Services
25     and the State Comptroller shall jointly promulgate rules
26     establishing the conditions under which interest of less

 

 

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1     than $5 may be claimed and paid. In the event an individual
2     has paid a vendor for services in advance, the provisions
3     of this Section shall apply until payment is made to that
4     individual.
5 (Source: P.A. 94-972, eff. 7-1-07.)
 
6     Section 99. Effective date. This Act takes effect July 1,
7 2009.