SB2628 94TH GENERAL ASSEMBLY

LRB094 19014 BDD 54506 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB2628

Introduced 1/20/2006, by Sen. Kimberly A. Lightford

SYNOPSIS AS INTRODUCED:

30 ILCS 540/8 new

Amends the State Prompt Payment Act. Defines "qualified provider" as small businesses or organizations that provide certain services for the care of the elderly, youth, mentally ill, or developmentally disabled or that provide substance-abuse services. Provides that a bill or invoice for goods or services furnished to the State submitted by a qualified provider and grant award payments to a qualified provider must be given priority in processing and that a voucher for payment submitted by an official or agency to the Comptroller for payment must be given priority in payment. Provides that the processing and payment of (i) debt service obligations of the State and (ii) payroll obligations of the State have priority over the processing and payment of items as required by these provisions. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning finance.

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

Section 5. The State Prompt Payment Act is amended by adding Section 8 as follows:

(30 ILCS 540/8 new)

Sec. 8. Priority of payment.

(a) Definition. As used in this Section, "qualified provider" means: (i) a vendor that is a small business, as defined in Section 9-2 of the Build Illinois Act; or (ii) an organization that provides non-residential services for the elderly, youth and foster care, or for the prevention, intervention, or treatment of mental illness, developmental disabilities, alcoholism or substance abuse. A "qualified provider" also includes an entity licensed under the Community-Integrated Living Arrangements Licensure and Certification Act and a facility licensed under the Nursing Home Care Act. A "qualified provider" does not include a hospital licensed under the Hospital Licensing Act or a local governmental unit or university. The Department of Human Services, in cooperation with the Department on Aging, the Department of Children and Family Services, and the Department of Healthcare and Family Services, shall make the determination of who is a "qualified provider".

(b) Processing by official or agency. Except as provided in subsection (c), a bill or invoice for goods or services furnished to the State submitted by a qualified provider and a grant award payment to a qualified provider must be given priority in processing. Any bill or invoice and any grant award payment meeting these criteria that is submitted to an official or agency must be processed and forwarded for payment before any other bill, invoice, or grant award payment is processed or forwarded for payment.

(c) A properly prepared voucher request to the Office of the Comptroller for payment to a qualified provider, as defined in this Section, shall be given priority by the Comptroller for processing and warrant issuance after debt service obligations and payroll obligations of the State have been met unless the Comptroller deems that other obligations of the State must be satisfied prior to these categories of payment. If at any time the Comptroller determines that there are insufficient funds available to process priority payments as required under this Section, then vouchers shall be processed and paid out in a first-in, first-out manner as corresponding funds become available.

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