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| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 HB4981 Introduced , by Rep. David Harris SYNOPSIS AS INTRODUCED: |
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Amends the State Prompt Payment Act. Provides that, for bills paid on or after the effective date, the interest penalty shall be 0.75% per month (currently, 1% per month). Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| | HB4981 | | LRB099 20182 HLH 44632 b |
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1 | | AN ACT concerning State government.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The State Prompt Payment Act is amended by |
5 | | changing Section 3-2 as follows:
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6 | | (30 ILCS 540/3-2)
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7 | | Sec. 3-2. Beginning July 1, 1993, in any instance where a |
8 | | State official or
agency is late in payment of a vendor's bill |
9 | | or invoice for goods or services
furnished to the State, as |
10 | | defined in Section 1, properly approved in
accordance with |
11 | | rules promulgated under Section 3-3, the State official or
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12 | | agency shall pay interest to the vendor in accordance with the |
13 | | following:
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14 | | (1) Any bill, except a bill submitted under Article V |
15 | | of the Illinois Public Aid Code and except as provided |
16 | | under paragraph (1.05) of this Section, approved for |
17 | | payment under this Section must be paid
or the payment |
18 | | issued to the payee within 60 days of receipt
of a proper |
19 | | bill or invoice.
If payment is not issued to the payee |
20 | | within this 60-day
period, an
interest penalty of 1.0% of |
21 | | any amount approved and unpaid shall be added
for each |
22 | | month or fraction thereof after the end of this 60-day |
23 | | period,
until final payment is made. Any bill, except a |
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1 | | bill for pharmacy
or nursing facility services or goods, |
2 | | and except as provided under paragraph (1.05) of this |
3 | | Section, submitted under Article V of the Illinois Public |
4 | | Aid Code approved for payment under this Section must be |
5 | | paid
or the payment issued to the payee within 60 days |
6 | | after receipt
of a proper bill or invoice, and,
if payment |
7 | | is not issued to the payee within this 60-day
period, an
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8 | | interest penalty of 2.0% of any amount approved and unpaid |
9 | | shall be added
for each month or fraction thereof after the |
10 | | end of this 60-day period,
until final payment is made. Any |
11 | | bill for pharmacy or nursing facility services or
goods |
12 | | submitted under Article V of the Illinois Public Aid
Code, |
13 | | except as provided under paragraph (1.05) of this Section, |
14 | | and approved for payment under this Section must be paid
or |
15 | | the payment issued to the payee within 60 days of
receipt |
16 | | of a proper bill or invoice. If payment is not
issued to |
17 | | the payee within this 60-day period, an interest
penalty of |
18 | | 1.0% of any amount approved and unpaid shall be
added for |
19 | | each month or fraction thereof after the end of this 60-day |
20 | | period, until final payment is made.
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21 | | (1.05) For State fiscal year 2012 and future fiscal |
22 | | years, any bill approved for payment under this Section |
23 | | must be paid
or the payment issued to the payee within 90 |
24 | | days of receipt
of a proper bill or invoice.
If payment is |
25 | | not issued to the payee within this 90-day
period, then, |
26 | | (i) for bills paid prior to this amendatory Act of the 99th |
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1 | | General Assembly, an
interest penalty of 1.0% of any amount |
2 | | approved and unpaid shall be added
for each month, or |
3 | | 0.033% (one-thirtieth of one percent) of any amount |
4 | | approved and unpaid for each day, after the end of this |
5 | | 90-day period,
until final payment is made , and (ii) for |
6 | | bills paid on or after this amendatory Act of the 99th |
7 | | General Assembly, an
interest penalty of 0.75% of any |
8 | | amount approved and unpaid shall be added
for each month, |
9 | | or 0.025% (one-thirtieth of 0.75%) of any amount approved |
10 | | and unpaid for each day, after the end of this 90-day |
11 | | period until final payment is made .
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12 | | (1.1) A State agency shall review in a timely manner |
13 | | each bill or
invoice after its receipt. If the
State agency |
14 | | determines that the bill or invoice contains a defect |
15 | | making it
unable to process the payment request, the agency
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16 | | shall notify the vendor requesting payment as soon as |
17 | | possible after
discovering the
defect pursuant to rules |
18 | | promulgated under Section 3-3; provided, however, that the |
19 | | notice for construction related bills or invoices must be |
20 | | given not later than 30 days after the bill or invoice was |
21 | | first submitted. The notice shall
identify the defect and |
22 | | any additional information
necessary to correct the |
23 | | defect. If one or more items on a construction related bill |
24 | | or invoice are disapproved, but not the entire bill or |
25 | | invoice, then the portion that is not disapproved shall be |
26 | | paid.
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1 | | (2) Where a State official or agency is late in payment |
2 | | of a
vendor's bill or invoice properly approved in |
3 | | accordance with this Act, and
different late payment terms |
4 | | are not reduced to writing as a contractual
agreement, the |
5 | | State official or agency shall automatically pay interest
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6 | | penalties required by this Section amounting to $50 or more |
7 | | to the appropriate
vendor. Each agency shall be responsible |
8 | | for determining whether an interest
penalty
is
owed and
for |
9 | | paying the interest to the vendor. Except as provided in |
10 | | paragraph (4), an individual interest payment amounting to |
11 | | $5 or less shall not be paid by the State.
Interest due to |
12 | | a vendor that amounts to greater than $5 and less than $50 |
13 | | shall not be paid but shall be accrued until all interest |
14 | | due the vendor for all similar warrants exceeds $50, at |
15 | | which time the accrued interest shall be payable and |
16 | | interest will begin accruing again, except that interest |
17 | | accrued as of the end of the fiscal year that does not |
18 | | exceed $50 shall be payable at that time. In the event an
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19 | | individual has paid a vendor for services in advance, the |
20 | | provisions of this
Section shall apply until payment is |
21 | | made to that individual.
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22 | | (3) The provisions of Public Act 96-1501 reducing the |
23 | | interest rate on pharmacy claims under Article V of the |
24 | | Illinois Public Aid Code to 1.0% per month shall apply to |
25 | | any pharmacy bills for services and goods under Article V |
26 | | of the Illinois Public Aid Code received on or after the |
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1 | | date 60 days before January 25, 2011 (the effective date of |
2 | | Public Act 96-1501) except as provided under paragraph |
3 | | (1.05) of this Section. |
4 | | (4) Interest amounting to less than $5 shall not be |
5 | | paid by the State, except for claims (i) to the Department |
6 | | of Healthcare and Family Services or the Department of |
7 | | Human Services, (ii) pursuant to Article V of the Illinois |
8 | | Public Aid Code, the Covering ALL KIDS Health Insurance |
9 | | Act, or the Children's Health Insurance Program Act, and |
10 | | (iii) made (A) by pharmacies for prescriptive services or |
11 | | (B) by any federally qualified health center for |
12 | | prescriptive services or any other services. |
13 | | (Source: P.A. 96-555, eff. 8-18-09; 96-802, eff. 1-1-10; |
14 | | 96-959, eff. 7-1-10; 96-1000, eff. 7-2-10; 96-1501, eff. |
15 | | 1-25-11; 96-1530, eff. 2-16-11; 97-72, eff. 7-1-11; 97-74, eff. |
16 | | 6-30-11; 97-348, eff. 8-12-11; 97-813, eff. 7-13-12; 97-932, |
17 | | eff. 8-10-12; 97-1142, eff. 12-28-12.)
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18 | | Section 99. Effective date. This Act takes effect upon |
19 | | becoming law.
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