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SB1472 Engrossed |
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LRB096 09376 JDS 19533 b |
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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 |
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| changing Section 3-2 as follows:
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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 |
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| State official or
agency is late in payment of a vendor's bill |
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| or invoice for goods or services
furnished to the State, as |
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| defined in Section 1, properly approved in
accordance with |
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| 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 |
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| following:
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| (1) Any bill approved for payment under this Section |
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| must be paid
or the payment issued to the payee within 60 |
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| days of receipt
of a proper bill or invoice.
If payment is |
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| not issued to the payee within this 60 day
period, an
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| interest penalty of 1.0% of any amount approved and unpaid |
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| shall be added
for each month or fraction thereof after the |
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| 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 |
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| each bill or
invoice after its receipt. If the
State agency |
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| determines that the bill or invoice contains a defect |
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SB1472 Engrossed |
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LRB096 09376 JDS 19533 b |
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| making it
unable to process the payment request, the agency
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| shall notify the vendor requesting payment as soon as |
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| possible after
discovering the
defect pursuant to rules |
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| promulgated under Section 3-3; provided, however, that the |
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| notice for construction related bills or invoices must be |
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| given not later than 30 days after the bill or invoice was |
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| first submitted. The notice shall
identify the defect and |
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| any additional information
necessary to correct the |
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| defect. If one or more items on a construction related bill |
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| or invoice are disapproved, but not the entire bill or |
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| invoice, then the portion that is not disapproved shall be |
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| paid.
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| (2) Where a State official or agency is late in payment |
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| of a
vendor's bill or invoice properly approved in |
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| accordance with this Act, and
different late payment terms |
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| are not reduced to writing as a contractual
agreement, the |
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| State official or agency shall automatically pay interest
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| penalties required by this Section amounting to $50 or more |
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| to the appropriate
vendor. Each agency shall be responsible |
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| for determining whether an interest
penalty
is
owed and
for |
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| paying the interest to the vendor.
For interest of at least |
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| $5 but less than $50, the vendor must
initiate a written |
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| request for the interest penalty when such interest is due
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| and payable. The Department of Central Management Services |
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| and the State
Comptroller shall jointly promulgate rules |
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| establishing the conditions under
which interest of less |