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92nd General Assembly

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Public Act 92-0384

HB1728 Enrolled                                LRB9205339REdv

    AN ACT concerning prompt payment.

    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
changing Sections 1, 3-2, 3-3, 4, and 5 and by adding Section
3-4 as follows:

    (30 ILCS 540/1) (from Ch. 127, par. 132.401)
    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.
    Except as provided in Section 2.1, For purposes  of  this
Act,  "goods  or services furnished to the State" include but
are not limited to covered health 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.
    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
administrator of a program of health benefits under that Act.
    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.
    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.
(Source: P.A. 91-266, eff. 7-23-99.)

    (30 ILCS 540/3-2) (from Ch. 127, par. 132.403-2)
    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
agency shall pay interest to the vendor  in  accordance  with
the following:
         (1)  Any   bill  approved  for  payment  under  this
    Section must be paid or the payment issued mailed to  the
    payee  within  60  days  of  receipt  of a proper bill or
    invoice the date of approval.  If payment is  not  issued
    made or mailed 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.
         (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 shall notify the vendor requesting payment  as
    soon as possible after discovering the defect pursuant to
    rules  promulgated  under  Section 3-3.  The notice shall
    identify  the  defect  and  any  additional   information
    necessary to correct the defect.
         (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  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  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.
(Source: P.A. 87-1232; 88-494.)

    (30 ILCS 540/3-3) (from Ch. 127, par. 132.403-3)
    Sec. 3-3.  The State Comptroller and  the  Department  of
Central  Management  Services  shall jointly promulgate rules
and policies to govern the uniform application of  this  Act.
These  rules  and  policies shall include procedures and time
frames for approving a bill or  invoice  from  a  vendor  for
goods  or  services  furnished to the State.  These rules and
policies  shall  provide  for  procedures  and  time   frames
applicable  to  payment  plans  as may be agreed upon between
State agencies and vendors. These rules and policies shall be
binding on  all  officials  and  agencies  under  this  Act's
jurisdiction.  These rules and policies may be made effective
no earlier than July 1, 1993.
(Source: P.A. 88-554, eff. 7-26-94; 89-21, eff. 7-1-95.)

    (30 ILCS 540/3-4 new)
    Sec.  3-4.  The State Comptroller must specify the manner
in  which  State  agencies  shall  record  interest   penalty
payments  made  under  this  Act.   The State Comptroller may
require vouchers submitted for payment, including  submission
by  electronic or other means approved by the Comptroller, to
indicate the appropriate date from which  interest  penalties
may be calculated as required under this Act.

    (30 ILCS 540/4) (from Ch. 127, par. 132.404)
    Sec.  4.  Nothing  in  this  Act  Neither  Section  2 nor
Section 3 shall be construed to deprive  the  Comptroller  of
his  power  to  examine  vouchers  as  specified in the State
Comptroller Act.
(Source: P.A. 86-1475.)

    (30 ILCS 540/5) (from Ch. 127, par. 132.405)
    Sec. 5.  The State remittance invoice  or  voucher  shall
indicate  that  payment  of  interest  may  be  available for
failure to comply with this Act.
(Source: P.A. 85-1159.)

    Section 99.  Effective date.  This Section  takes  effect
upon  becoming  law. Section 5 takes effect upon becoming law
solely for the purpose of allowing the State Comptroller  and
the  Department  of Central Management Services to promulgate
rules for the implementation of this Act.  Section 5 for  all
other purposes takes effect July 1, 2002.
    Passed in the General Assembly May 22, 2001.
    Approved August 16, 2001.

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