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Public Act 096-0802
Public Act 0802 96TH GENERAL ASSEMBLY
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Public Act 096-0802 |
HB0237 Enrolled |
LRB096 03175 RCE 13192 b |
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| 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 | changing Sections 1 and 3-2 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.
| For purposes of this Act, "goods or
services furnished to | the State" include but are not limited to (i) 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 , 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.
| 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; 92-384, eff. 7-1-02.)
| (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 , 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.
| (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; 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.
| (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. 94-972, eff. 7-1-07 .)
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Effective Date: 1/1/2010
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