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| Public Act 096-0802 |
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AN ACT concerning finance.
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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 | ||||
changing Sections 1 and 3-2 as follows:
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(30 ILCS 540/1) (from Ch. 127, par. 132.401)
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Sec. 1.
This Act applies to any State official or agency | ||||
authorized to
provide for payment from State funds, by virtue | ||||
of any appropriation of the
General Assembly, for goods or | ||||
services furnished to the State.
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For purposes of this Act, "goods or
services furnished to | ||||
the State" include but are not limited to (i) covered health
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care provided to eligible members and their covered dependents | ||||
in accordance
with the State Employees Group Insurance Act of | ||||
1971, including coverage
through a physician-owned health | ||||
maintenance organization under Section 6.1 of
that Act, and | ||||
(ii) prevention, intervention, or treatment services and | ||||
supports for persons with developmental disabilities, mental | ||||
health services, alcohol and substance abuse services, | ||||
rehabilitation services, and early intervention services | ||||
provided by a vendor. For the purposes of item (ii), a vendor | ||||
includes but is not limited to sellers of goods and services, | ||||
including community-based organizations that are licensed to | ||||
provide prevention, intervention, or treatment services and | ||
supports for persons with developmental disabilities, mental | ||
illness, and substance abuse problems.
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For the purposes of this Act, "appropriate State official | ||
or agency" is
defined as the Director or Chief Executive or his | ||
designee of that State
agency or department or facility of such | ||
agency or department.
With respect to covered health care | ||
provided to eligible members and
their dependents in accordance | ||
with the State Employees Group Insurance Act
of 1971, | ||
"appropriate State official or agency" also includes an
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administrator of a program of health benefits under that Act.
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As used in this Act, "eligible member" means a member who | ||
is eligible for
health benefits under the State Employees Group | ||
Insurance Act of 1971, and
"member" and "dependent" have the | ||
meanings ascribed to those terms in that Act.
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As used in this Act, "a proper bill or invoice" means a | ||
bill or invoice
that
includes the
information necessary for | ||
processing the payment as may be specified by a State
agency | ||
and in rules adopted in accordance with this Act.
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(Source: P.A. 91-266, eff. 7-23-99; 92-384, eff. 7-1-02.)
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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 | ||
State official or
agency is late in payment of a vendor's bill | ||
or invoice for goods or services
furnished to the State, as | ||
defined in Section 1, properly approved in
accordance with | ||
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 | ||
following:
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(1) Any bill, except a bill submitted under Article V | ||
of the Illinois Public Aid Code, approved for payment under | ||
this Section must be paid
or the payment issued to the | ||
payee within 60 days of receipt
of a proper bill or | ||
invoice.
If payment is not issued to the payee within this | ||
60 day
period, an
interest penalty of 1.0% of any amount | ||
approved and unpaid shall be added
for each month or | ||
fraction thereof after the end of this 60 day period,
until | ||
final payment is made. Any bill submitted under Article V | ||
of the Illinois Public Aid Code approved for payment under | ||
this Section must be paid
or the payment issued to the | ||
payee within 60 days after receipt
of a proper bill or | ||
invoice, and,
if payment is not issued to the payee within | ||
this 60-day
period, an
interest penalty of 2.0% of any | ||
amount approved and unpaid shall be added
for each month or | ||
fraction thereof after the 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 | ||
each bill or
invoice after its receipt. If the
State agency | ||
determines that the bill or invoice contains a defect | ||
making it
unable to process the payment request, the agency
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shall notify the vendor requesting payment as soon as | ||
possible after
discovering the
defect pursuant to rules | ||
promulgated under Section 3-3; provided, however, that the | ||
notice for construction related bills or invoices must be | ||
given not later than 30 days after the bill or invoice was | ||
first submitted. The notice shall
identify the defect and | ||
any additional information
necessary to correct the | ||
defect. If one or more items on a construction related bill | ||
or invoice are disapproved, but not the entire bill or | ||
invoice, then the portion that is not disapproved shall be | ||
paid.
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(2) Where a State official or agency is late in payment | ||
of a
vendor's bill or invoice properly approved in | ||
accordance with this Act, and
different late payment terms | ||
are not reduced to writing as a contractual
agreement, the | ||
State official or agency shall automatically pay interest
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penalties required by this Section amounting to $50 or more | ||
to the appropriate
vendor. Each agency shall be responsible | ||
for determining whether an interest
penalty
is
owed and
for | ||
paying the interest to the vendor.
For interest of at least | ||
$5 but less than $50, the vendor must
initiate a written | ||
request for the interest penalty when such interest is due
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and payable. The Department of Central Management Services | ||
and the State
Comptroller shall jointly promulgate rules | ||
establishing the conditions under
which interest of less | ||
than $5 may be claimed and paid. In the event an
individual | ||
has paid a vendor for services in advance, the provisions | ||
of this
Section shall apply until payment is made to that | ||
individual.
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(Source: P.A. 94-972, eff. 7-1-07.)
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