Bill Text: IL HB0237 | 2009-2010 | 96th General Assembly | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the State Prompt Payment Act. Provides that any bill submitted under Article V of the Illinois Public Aid Code approved for payment must be paid or the payment issued to the payee within 30 days (now, 60 days) after receipt of a proper bill or invoice, and, if payment is not issued to the payee within this 30-day period, an interest penalty of 2.0% (now, 1.0%) of any amount approved and unpaid shall be added for each month or fraction thereof after the end of this 30-day period, until final payment is made.

Sponsorship: Partisan Bill (Republican 22-1)

Status: (Passed) 2009-11-03 - Public Act . . . . . . . . . 96-0802 [HB0237 Detail]

Download: Illinois-2009-HB0237-Engrossed.html

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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 Section 3-2 as follows:
(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

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this Section must be paid or the payment issued to the
payee within 30 days after receipt of a proper bill or
invoice, and, if payment is not issued to the payee within
this 30-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 30-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

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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.)