Full Text of HB1156 97th General Assembly
HB1156eng 97TH GENERAL ASSEMBLY |
| | HB1156 Engrossed | | LRB097 06161 RLJ 46235 b |
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| 1 | | AN ACT concerning State government.
| 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)
| 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, except a bill submitted under Article V | 15 | | of the Illinois Public Aid Code, approved for payment under | 16 | | this Section must be paid
or the payment issued to the | 17 | | payee within 60 days of receipt
of a proper bill or | 18 | | invoice.
If payment is not issued to the payee within this | 19 | | 60-day 60 day
period, an
interest penalty of 1.0% of any | 20 | | amount approved and unpaid shall be added
for each month or | 21 | | fraction thereof after the end of this 60-day 60 day | 22 | | period,
until final payment is made. Any bill, except a | 23 | | bill for pharmacy
or nursing facility services or goods, |
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| 1 | | submitted under Article V of the Illinois Public Aid Code | 2 | | approved for payment under this Section must be paid
or the | 3 | | payment issued to the payee within 60 days after receipt
of | 4 | | a proper bill or invoice, and,
if payment is not issued to | 5 | | the payee within this 60-day
period, an
interest penalty of | 6 | | 2.0% of any amount approved and unpaid shall be added
for | 7 | | each month or fraction thereof after the end of this 60-day | 8 | | period,
until final payment is made. Any bill for pharmacy | 9 | | or nursing facility services or
goods submitted under | 10 | | Article V of the Illinois Public Aid
Code and , approved for | 11 | | payment under this Section must be paid
or the payment | 12 | | issued to the payee within 60 days of
receipt of a proper | 13 | | bill or invoice. If payment is not
issued to the payee | 14 | | within this 60-day 60 day period, an interest
penalty of | 15 | | 1.0% of any amount approved and unpaid shall be
added for | 16 | | each month or fraction thereof after the end of this 60-day | 17 | | 60 day period, until final payment is made.
| 18 | | (1.1) A State agency shall review in a timely manner | 19 | | each bill or
invoice after its receipt. If the
State agency | 20 | | determines that the bill or invoice contains a defect | 21 | | making it
unable to process the payment request, the agency
| 22 | | shall notify the vendor requesting payment as soon as | 23 | | possible after
discovering the
defect pursuant to rules | 24 | | promulgated under Section 3-3; provided, however, that the | 25 | | notice for construction related bills or invoices must be | 26 | | given not later than 30 days after the bill or invoice was |
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| 1 | | first submitted. The notice shall
identify the defect and | 2 | | any additional information
necessary to correct the | 3 | | defect. If one or more items on a construction related bill | 4 | | or invoice are disapproved, but not the entire bill or | 5 | | invoice, then the portion that is not disapproved shall be | 6 | | paid.
| 7 | | (2) Where a State official or agency is late in payment | 8 | | of a
vendor's bill or invoice properly approved in | 9 | | accordance with this Act, and
different late payment terms | 10 | | are not reduced to writing as a contractual
agreement, the | 11 | | State official or agency shall automatically pay interest
| 12 | | penalties required by this Section amounting to $50 or more | 13 | | to the appropriate
vendor. Each agency shall be responsible | 14 | | for determining whether an interest
penalty
is
owed and
for | 15 | | paying the interest to the vendor.
Interest due to a vendor | 16 | | that amounts to less than $50 shall not be paid but shall | 17 | | be accrued until all interest due the vendor for all | 18 | | similar warrants exceeds $50, at which time the accrued | 19 | | interest shall be payable and interest will begin accruing | 20 | | again . Interest , except that interest accrued as of the | 21 | | end of the fiscal year that does not exceed $50 shall be | 22 | | payable at that time only if the interest accrued is $5 or | 23 | | more . In the event an
individual has paid a vendor for | 24 | | services in advance, the provisions of this
Section shall | 25 | | apply until payment is made to that individual.
| 26 | | (3) The provisions of Public Act 96-1501 this |
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| 1 | | amendatory Act of the 96th General Assembly reducing the | 2 | | interest rate on pharmacy claims under Article V of the | 3 | | Illinois Public Aid Code to 1.0% per month shall apply to | 4 | | any pharmacy bills for services and goods under Article V | 5 | | of the Illinois Public Aid Code received on or after the | 6 | | date 60 days before January 25, 2011 ( the effective date of | 7 | | Public Act 96-1501) this amendatory Act of the 96th General | 8 | | Assembly . | 9 | | (Source: P.A. 96-555, eff. 8-18-09; 96-802, eff. 1-1-10; | 10 | | 96-959, eff. 7-1-10; 96-1000, eff. 7-2-10; 96-1501, eff. | 11 | | 1-25-11; 96-1530, eff. 2-16-11; revised 2-22-11.)
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