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91_HB4424
LRB9112481MWgc
1 AN ACT to amend the State Prompt Payment Act by changing
2 Section 3-2.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The State Prompt Payment Act is amended by
6 changing Section 3-2 as follows:
7 (30 ILCS 540/3-2) (from Ch. 127, par. 132.403-2)
8 Sec. 3-2. Beginning July 1, 1993, in any instance where
9 a State official or agency is late in payment of a vendor's
10 bill or invoice for goods or services furnished to the State,
11 as defined in Section 1, properly approved in accordance with
12 rules promulgated under Section 3-3, the State official or
13 agency shall pay interest to the vendor in accordance with
14 the following:
15 (1) Except as provided in paragraph (1.5) of this
16 Section, any bill approved for payment under this Section
17 must be paid or the payment mailed to the payee within 60
18 days of the date of approval. If payment is not made or
19 mailed to the payee within this 60 day period, an
20 interest penalty of 1.0% of any amount approved and
21 unpaid shall be added for each month or fraction thereof
22 after the end of this 60 day period, until final payment
23 is made.
24 (1.5) A bill from a community service provider for
25 services purchased by the Department of Human Services
26 under the Mental Health and Developmental Disabilities
27 Administrative Act must be paid within 30 days after the
28 bill is approved for payment. If payment is not made
29 within the 30-day period, a late fee in an amount equal
30 to 75% of the underpayment interest rate specified in the
31 federal IRS Revenue Ruling 99-36 charged on any amount
-2- LRB9112481MWgc
1 approved and unpaid shall be added for each month, or
2 fraction thereof, after the end of the 30-day period
3 until a final payment is made.
4 (2) Where a State official or agency is late in
5 payment of a vendor's bill or invoice properly approved
6 in accordance with this Act, and different late payment
7 terms are not reduced to writing as a contractual
8 agreement, the State official or agency shall
9 automatically pay interest penalties or late fees
10 required by this Section amounting to $50 or more to the
11 appropriate vendor. For interest or late fees of at
12 least $5 but less than $50, the vendor must initiate a
13 written request for the interest penalty or late fee when
14 such interest or fee is due and payable. The Department
15 of Central Management Services and the State Comptroller
16 shall jointly promulgate rules establishing the
17 conditions under which interest and late fees of less
18 than $5 may be claimed and paid. In the event an
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.
22 (Source: P.A. 87-1232; 88-494.)
23 Section 99. Effective date. This Act takes effect upon
24 becoming law.