Full Text of HB3449 97th General Assembly
HB3449 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB3449 Introduced 2/24/2011, by Rep. Frank J. Mautino SYNOPSIS AS INTRODUCED: |
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15 ILCS 405/9.03 | from Ch. 15, par. 209.03 |
30 ILCS 540/3-2 | |
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Amends the State Comptroller Act. Provides that all State payments for an employee's payroll, a retiree's pension, or an employee's expense reimbursement must be made through direct deposit. Provides that all State payments to a vendor that exceed a certain allowable limit of paper warrants in a fiscal year, by the same agency, must be made through direct deposit. Provides that, if a State agency fails to meet the direct deposit requirements, the Comptroller may charge the employee, retiree, or vendor a processing fee of $2.50 per paper warrant. Amends the State Prompt Payment Act. Provides that an individual interest penalty for a late payment owed by the State amounting to $5 or less shall not be paid by the State. Provides that the Comptroller may require all interest penalty payments to be made through direct deposit. Effective immediately.
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| | A BILL FOR |
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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 Comptroller Act is amended by changing | 5 | | Section 9.03 as follows:
| 6 | | (15 ILCS 405/9.03) (from Ch. 15, par. 209.03)
| 7 | | Sec. 9.03. Direct deposit of State payments. | 8 | | (a) The Comptroller, with the
approval of the State | 9 | | Treasurer, may provide by rule or regulation for the
direct | 10 | | deposit of any payment lawfully payable from the State Treasury | 11 | | and in
accordance with federal banking regulations including | 12 | | but not limited to
payments to (i) persons paid from personal | 13 | | services, (ii)
persons receiving benefit payments from him | 14 | | under the State pension
systems, (iii) individuals who receive | 15 | | assistance under Articles III, IV,
and VI of the Illinois | 16 | | Public Aid Code, (iv) providers of services under
the Mental | 17 | | Health and Developmental Disabilities
Administrative Act, (v)
| 18 | | providers of community-based mental health services, and (vi) | 19 | | providers of
services under programs administered by the State | 20 | | Board of Education, in the
accounts of those persons or | 21 | | entities maintained at a bank, savings and loan
association, or | 22 | | credit
union, where authorized by the payee. The Comptroller | 23 | | also may deposit
public aid payments for individuals who |
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| 1 | | receive assistance under Articles
III, IV, VI, and X of the | 2 | | Illinois Public Aid Code directly into an
electronic benefits | 3 | | transfer account in a financial institution approved by
the | 4 | | State Treasurer as prescribed by the Illinois Department of | 5 | | Human
Services
and in accordance with the rules and regulations | 6 | | of that Department and the
rules and regulation adopted by the | 7 | | Comptroller and the State Treasurer.
The Comptroller, with the | 8 | | approval of the State Treasurer, may provide by
rule for the | 9 | | electronic direct deposit of payments to public agencies and | 10 | | any
other payee of the State. The electronic direct
deposits | 11 | | may be made to the designated account in those financial | 12 | | institutions
specified in this Section for the direct deposit | 13 | | of payments. Within 6 months
after the effective date of this | 14 | | amendatory Act of 1994, the Comptroller shall
establish a pilot | 15 | | program for the electronic direct deposit of payments to
local | 16 | | school districts, municipalities, and units of local | 17 | | government.
The payments may be made without the use of the | 18 | | voucher-warrant system,
provided that documentation of | 19 | | approval by the Treasurer of each group of
payments made by | 20 | | direct deposit shall be retained by the Comptroller. The
form | 21 | | and method of the Treasurer's approval shall be established by | 22 | | the
rules or regulations adopted by the Comptroller under this | 23 | | Section. | 24 | | (b) All State payments for an employee's payroll, a | 25 | | retiree's pension benefit, or an employee's expense | 26 | | reimbursement must be made through direct deposit. It is the |
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| 1 | | responsibility of the paying State agency to ensure compliance | 2 | | with this mandate. If a State agency pays an employee's | 3 | | payroll, a retiree's pension benefit, or an employee's expense | 4 | | reimbursement without using direct deposit, the Comptroller | 5 | | may charge that employee a processing fee of $2.50 per paper | 6 | | warrant. The amount collected from the fee shall be deposited | 7 | | into the Comptroller's Administrative Fund. | 8 | | (c) All State payments to a vendor that exceed the | 9 | | allowable limit of paper warrants in a fiscal year, by the same | 10 | | agency, must be made through direct deposit. It is the | 11 | | responsibility of the paying State agency to ensure compliance | 12 | | with this mandate. If a State agency pays a vendor more times | 13 | | than the allowable limit in a single fiscal year without using | 14 | | direct deposit, the Comptroller may charge the vendor a | 15 | | processing fee of $2.50 per paper warrant. The amount collected | 16 | | from the processing fee shall be deposited into the | 17 | | Comptroller's Administrative Fund. The Office of Comptroller | 18 | | shall define "vendor" and "allowable limit" in the Statewide | 19 | | Accounting Management Manual System (SAMS) manual and shall | 20 | | provide such notice to all State agencies.
| 21 | | (Source: P.A. 88-641, eff. 9-9-94; 88-643, eff. 1-1-95; 89-235, | 22 | | eff.
8-4-95; 89-507, eff. 7-1-97.)
| 23 | | Section 10. The State Prompt Payment Act is amended by | 24 | | changing Section 3-2 as follows:
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| 1 | | (30 ILCS 540/3-2)
| 2 | | Sec. 3-2. Beginning July 1, 1993, in any instance where a | 3 | | State official or
agency is late in payment of a vendor's bill | 4 | | or invoice for goods or services
furnished to the State, as | 5 | | defined in Section 1, properly approved in
accordance with | 6 | | rules promulgated under Section 3-3, the State official or
| 7 | | agency shall pay interest to the vendor in accordance with the | 8 | | following:
| 9 | | (1) Any bill, except a bill submitted under Article V | 10 | | of the Illinois Public Aid Code, approved for payment under | 11 | | this Section must be paid
or the payment issued to the | 12 | | payee within 60 days of receipt
of a proper bill or | 13 | | invoice.
If payment is not issued to the payee within this | 14 | | 60-day 60 day
period, an
interest penalty of 1.0% of any | 15 | | amount approved and unpaid shall be added
for each month or | 16 | | fraction thereof after the end of this 60-day 60 day | 17 | | period,
until final payment is made. Any bill, except a | 18 | | bill for pharmacy
or nursing facility services or goods, | 19 | | submitted under Article V of the Illinois Public Aid Code | 20 | | approved for payment under this Section must be paid
or the | 21 | | payment issued to the payee within 60 days after receipt
of | 22 | | a proper bill or invoice, and,
if payment is not issued to | 23 | | the payee within this 60-day
period, an
interest penalty of | 24 | | 2.0% of any amount approved and unpaid shall be added
for | 25 | | each month or fraction thereof after the end of this 60-day | 26 | | period,
until final payment is made. Any bill for pharmacy |
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| 1 | | or nursing facility services or
goods submitted under | 2 | | Article V of the Illinois Public Aid
Code and , approved for | 3 | | payment under this Section must be paid
or the payment | 4 | | issued to the payee within 60 days of
receipt of a proper | 5 | | bill or invoice. If payment is not
issued to the payee | 6 | | within this 60-day 60 day period, an interest
penalty of | 7 | | 1.0% of any amount approved and unpaid shall be
added for | 8 | | each month or fraction thereof after the end of this 60-day | 9 | | 60 day period, until final payment is made.
| 10 | | (1.1) A State agency shall review in a timely manner | 11 | | each bill or
invoice after its receipt. If the
State agency | 12 | | determines that the bill or invoice contains a defect | 13 | | making it
unable to process the payment request, the agency
| 14 | | shall notify the vendor requesting payment as soon as | 15 | | possible after
discovering the
defect pursuant to rules | 16 | | promulgated under Section 3-3; provided, however, that the | 17 | | notice for construction related bills or invoices must be | 18 | | given not later than 30 days after the bill or invoice was | 19 | | first submitted. The notice shall
identify the defect and | 20 | | any additional information
necessary to correct the | 21 | | defect. If one or more items on a construction related bill | 22 | | or invoice are disapproved, but not the entire bill or | 23 | | invoice, then the portion that is not disapproved shall be | 24 | | paid.
| 25 | | (2) Where a State official or agency is late in payment | 26 | | of a
vendor's bill or invoice properly approved in |
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| 1 | | accordance with this Act, and
different late payment terms | 2 | | are not reduced to writing as a contractual
agreement, the | 3 | | State official or agency shall automatically pay interest
| 4 | | penalties required by this Section amounting to $50 or more | 5 | | to the appropriate
vendor. Each agency shall be responsible | 6 | | for determining whether an interest
penalty
is
owed and
for | 7 | | paying the interest to the vendor.
An individual interest | 8 | | payment amounting to $5 or less shall not be paid by the | 9 | | State. Interest due to a vendor that amounts to greater | 10 | | than $5 and less than $50 shall not be paid but shall be | 11 | | accrued until all interest due the vendor for all similar | 12 | | warrants exceeds $50, at which time the accrued interest | 13 | | shall be payable and interest will begin accruing again, | 14 | | except that interest accrued as of the end of the fiscal | 15 | | year that does not exceed $50 shall be payable at that | 16 | | time. In the event an
individual has paid a vendor for | 17 | | services in advance, the provisions of this
Section shall | 18 | | apply until payment is made to that individual.
| 19 | | (3) The provisions of Public Act 96-1501 this | 20 | | amendatory Act of the 96th General Assembly reducing the | 21 | | interest rate on pharmacy claims under Article V of the | 22 | | Illinois Public Aid Code to 1.0% per month shall apply to | 23 | | any pharmacy bills for services and goods under Article V | 24 | | of the Illinois Public Aid Code received on or after the | 25 | | date 60 days before January 25, 2011 ( the effective date of | 26 | | Public Act 96-1501) this amendatory Act of the 96th General |
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| 1 | | Assembly . | 2 | | (4) The Office Of Comptroller may require all interest | 3 | | penalty payments made under item (2) to be made through | 4 | | direct deposit. The Comptroller may charge a vendor a fee | 5 | | of $2.50 per paper warrant issued. The fee must be | 6 | | deposited into the Comptroller's Administrative Fund. | 7 | | (Source: P.A. 96-555, eff. 8-18-09; 96-802, eff. 1-1-10; | 8 | | 96-959, eff. 7-1-10; 96-1000, eff. 7-2-10; 96-1501, eff. | 9 | | 1-25-11; 96-1530, eff. 2-16-11; revised 2-22-11.)
| 10 | | Section 99. Effective date. This Act takes effect upon | 11 | | becoming law.
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