Bill Text: IL HB1034 | 2009-2010 | 96th General Assembly | Introduced

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

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Bill Title: Amends the State Budget Law of the Civil Administrative Code of Illinois. Requires that the Governor's submitted budget include information concerning the amount and description of overdue bills and invoices under the State Prompt Payment Act. Amends the Prompt Payment Act. Accelerates the payment period from 60 days after the bill is submitted to 30 days after the bill is submitted. Increases the interest penalty from 1% to 1.5% if the payment is not made within 60 days after the bill is submitted. Effective immediately.

Spectrum: Moderate Partisan Bill (Democrat 4-1)

Status: (Engrossed - Dead) 2009-04-15 - Referred to Assignments [HB1034 Detail]

Download: Illinois-2009-HB1034-Introduced.html

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96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 HB1034 Introduced 02/11/09, by Rep. Robert F. Flider SYNOPSIS AS INTRODUCED:
15 ILCS 20/50-5 was 15 ILCS 20/38
30 ILCS 540/3-2 from Ch. 127, par. 132.403-2
Amends the State Budget Law of the Civil Administrative Code of Illinois. Requires that the Governor's submitted budget include information concerning the amount and description of overdue bills and invoices under the State Prompt Payment Act. Amends the Prompt Payment Act. Accelerates the payment period from 60 days after the bill is submitted to 30 days after the bill is submitted. Increases the interest penalty from 1% to 1.5% if the payment is not made within 60 days after the bill is submitted. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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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 Budget Law of the Civil Administrative
Code of Illinois is amended by changing Section 50-5 as
follows:
(15 ILCS 20/50-5) (was 15 ILCS 20/38)
Sec. 50-5. Governor to submit State budget. The Governor
shall, as soon as possible and not later than the first
Wednesday in March in 2007 (March 7, 2007) and the third
Wednesday in February of each year beginning in 2008, except as
otherwise provided in this Section, submit a State budget,
embracing therein the amounts recommended by the Governor to be
appropriated to the respective departments, offices, and
institutions, and for all other public purposes, the estimated
revenues from taxation, the estimated revenues from sources
other than taxation, and an estimate of the amount required to
be raised by taxation, and the amount and description of
overdue bills and invoices under the State Prompt Payment Act.
In 2004 only, the Governor shall submit the capital development
section of the State budget not later than the fourth Tuesday
of March (March 23, 2004). The amounts recommended by the
Governor for appropriation to the respective departments,

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offices and institutions shall be formulated according to the
various functions and activities for which the respective
department, office or institution of the State government
(including the elective officers in the executive department
and including the University of Illinois and the judicial
department) is responsible. The amounts relating to particular
functions and activities shall be further formulated in
accordance with the object classification specified in Section
13 of the State Finance Act.
The amount and description of overdue bills and invoices
under the State Prompt Payment Act must include:
(1) the total number of and amount of bills or invoices
that were not paid within 30 days after submission during
the prior fiscal year;
(2) the total number of and amount of bills or invoices
that were not paid within 60 days after submission during
the prior fiscal year;
(3) the total amount of interest penalties that the
State incurred during the prior fiscal year under Section
3-2 of the State Prompt Payment Act; and
(4) the estimated amount of all moneys that will be due
under Section 3-2 of the State Prompt Payment Act as of May
31 of the current year.
The Governor shall not propose expenditures and the General
Assembly shall not enact appropriations that exceed the
resources estimated to be available, as provided in this

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Section.
For the purposes of Article VIII, Section 2 of the 1970
Illinois Constitution, the State budget for the following funds
shall be prepared on the basis of revenue and expenditure
measurement concepts that are in concert with generally
accepted accounting principles for governments:
(1) General Revenue Fund.
(2) Common School Fund.
(3) Educational Assistance Fund.
(4) Road Fund.
(5) Motor Fuel Tax Fund.
(6) Agricultural Premium Fund.
These funds shall be known as the "budgeted funds". The
revenue estimates used in the State budget for the budgeted
funds shall include the estimated beginning fund balance, plus
revenues estimated to be received during the budgeted year,
plus the estimated receipts due the State as of June 30 of the
budgeted year that are expected to be collected during the
lapse period following the budgeted year, minus the receipts
collected during the first 2 months of the budgeted year that
became due to the State in the year before the budgeted year.
Revenues shall also include estimated federal reimbursements
associated with the recognition of Section 25 of the State
Finance Act liabilities. For any budgeted fund for which
current year revenues are anticipated to exceed expenditures,
the surplus shall be considered to be a resource available for

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expenditure in the budgeted fiscal year.
Expenditure estimates for the budgeted funds included in
the State budget shall include the costs to be incurred by the
State for the budgeted year, to be paid in the next fiscal
year, excluding costs paid in the budgeted year which were
carried over from the prior year, where the payment is
authorized by Section 25 of the State Finance Act. For any
budgeted fund for which expenditures are expected to exceed
revenues in the current fiscal year, the deficit shall be
considered as a use of funds in the budgeted fiscal year.
Revenues and expenditures shall also include transfers
between funds that are based on revenues received or costs
incurred during the budget year.
By March 15 of each year, the Commission on Government
Forecasting and Accountability shall prepare revenue and fund
transfer estimates in accordance with the requirements of this
Section and report those estimates to the General Assembly and
the Governor.
For all funds other than the budgeted funds, the proposed
expenditures shall not exceed funds estimated to be available
for the fiscal year as shown in the budget. Appropriation for a
fiscal year shall not exceed funds estimated by the General
Assembly to be available during that year.
(Source: P.A. 93-1, eff. 2-6-03; 93-662, eff. 2-11-04; 93-1067,
eff. 1-15-05; 94-1108, eff. 2-16-07.)

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Section 10. 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 approved for payment under this Section
must be paid or the payment issued to the payee within 30
days after the 60 days of receipt of a proper bill or
invoice. If payment is not issued to the payee within this
30-day 60 day period, then 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 30-day 60
day period, until the earlier of (i) the date that final
payment is made or (ii) 60 days after the receipt of the
bill or invoice. If payment is not issued to the payee
within 60 days after the receipt of the bill or invoice,
then an interest penalty of 1.5% of any amount approved and
unpaid is added for each month or fraction thereof after
the end of this 60-day period until final payment is made.
(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
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
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

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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.)
Section 99. Effective date. This Act takes effect upon
becoming law.