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| 1 | AN ACT concerning finance.
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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) (from Ch. 127, par. 132.403-2)
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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 approved for payment under this Section | ||||||||||||||||||||||||
| 15 | must be paid
or the payment issued to the payee within 60 | ||||||||||||||||||||||||
| 16 | days of receipt
of a proper bill or invoice if received | ||||||||||||||||||||||||
| 17 | before the effective date of this amendatory Act of the | ||||||||||||||||||||||||
| 18 | 96th General Assembly or within 45 days of receipt of a | ||||||||||||||||||||||||
| 19 | proper bill or invoice if received on or after the | ||||||||||||||||||||||||
| 20 | effective date of this amendatory Act of the 96th General | ||||||||||||||||||||||||
| 21 | Assembly.
If payment is not issued to the payee within this | ||||||||||||||||||||||||
| 22 | 45-day or 60-day 60 day
period, as applicable, an
interest | ||||||||||||||||||||||||
| 23 | penalty of 1.0% of any amount approved and unpaid shall be | ||||||||||||||||||||||||
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| 1 | added
for each month or fraction thereof after the end of | ||||||
| 2 | this 45-day or 60-day 60 day period, as applicable,
until | ||||||
| 3 | final payment is made.
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| 4 | (1.1) A State agency shall review in a timely manner | ||||||
| 5 | each bill or
invoice after its receipt. If the
State agency | ||||||
| 6 | determines that the bill or invoice contains a defect | ||||||
| 7 | making it
unable to process the payment request, the agency
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| 8 | shall notify the vendor requesting payment as soon as | ||||||
| 9 | possible after
discovering the
defect pursuant to rules | ||||||
| 10 | promulgated under Section 3-3; provided, however, that the | ||||||
| 11 | notice for construction related bills or invoices must be | ||||||
| 12 | given not later than 30 days after the bill or invoice was | ||||||
| 13 | first submitted. The notice shall
identify the defect and | ||||||
| 14 | any additional information
necessary to correct the | ||||||
| 15 | defect. If one or more items on a construction related bill | ||||||
| 16 | or invoice are disapproved, but not the entire bill or | ||||||
| 17 | invoice, then the portion that is not disapproved shall be | ||||||
| 18 | paid.
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| 19 | (2) Where a State official or agency is late in payment | ||||||
| 20 | of a
vendor's bill or invoice properly approved in | ||||||
| 21 | accordance with this Act, and
different late payment terms | ||||||
| 22 | are not reduced to writing as a contractual
agreement, the | ||||||
| 23 | State official or agency shall automatically pay interest
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| 24 | penalties required by this Section amounting to $50 or more | ||||||
| 25 | to the appropriate
vendor. Each agency shall be responsible | ||||||
| 26 | for determining whether an interest
penalty
is
owed and
for | ||||||
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| 1 | paying the interest to the vendor.
For interest of at least | ||||||
| 2 | $5 but less than $50, the vendor must
initiate a written | ||||||
| 3 | request for the interest penalty when such interest is due
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| 4 | and payable. The Department of Central Management Services | ||||||
| 5 | and the State
Comptroller shall jointly promulgate rules | ||||||
| 6 | establishing the conditions under
which interest of less | ||||||
| 7 | than $5 may be claimed and paid. In the event an
individual | ||||||
| 8 | has paid a vendor for services in advance, the provisions | ||||||
| 9 | of this
Section shall apply until payment is made to that | ||||||
| 10 | individual.
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| 11 | (Source: P.A. 94-972, eff. 7-1-07.)
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