Bill Text: IL HB3172 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the State Prompt Payment Act. Provides for the Flexible Vendor Payment Program. Provides minimum requirements for the Program. Provides for a Program administrator. Provides for capital providers to the Program. Provides that the Program shall be accessible to any State vendor that wishes to enter into the Program. Provides that a vendor shall assign its interest in a voucher to an eligible capital provider, and select a timeframe upon which the capital provider shall pay to the vendor 100% percent of the payable voucher, minus any fees that may be associated with how soon the vendor wants to be paid. Specifies payment timeframe. Provides for the payment of invoices by the State to capital providers. Establishes a variable interest rate. Authorizes late payment agreements. Provides for the adoption of rules.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2021-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB3172 Detail]

Download: Illinois-2021-HB3172-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB3172 Introduced , by Rep. Michael Halpin SYNOPSIS AS INTRODUCED:
30 ILCS 540/12 new
Amends the State Prompt Payment Act. Provides for the Flexible Vendor Payment Program. Provides minimum requirements for the Program. Provides for a Program administrator. Provides for capital providers to the Program. Provides that the Program shall be accessible to any State vendor that wishes to enter into the Program. Provides that a vendor shall assign its interest in a voucher to an eligible capital provider, and select a timeframe upon which the capital provider shall pay to the vendor 100% percent of the payable voucher, minus any fees that may be associated with how soon the vendor wants to be paid. Specifies payment timeframe. Provides for the payment of invoices by the State to capital providers. Establishes a variable interest rate. Authorizes late payment agreements. Provides for the adoption of rules.
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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 Prompt Payment Act is amended by
adding Section 12 as follows:
(30 ILCS 540/12 new)
Sec. 12. Flexible Vendor Payment Program.
(a) In addition to the program established under Section
8, the State Comptroller and the Department of Central
Management Services are authorized to establish and implement
a Flexible Vendor Payment Program as provided under this
Section.
(b) At a minimum, the Program established under this
Section shall provide or allow for the following:
(1) Allow vendors to manage the timing of payments
from the State to allow better management of their
business and cash flow.
(2) Allow the State to manage its payment cycle based
off of its own cash flow, without being a burden to its
vendors, or adding any unnecessary cost to its vendors.
The State shall also be able to maintain its current 90 day
payment cycle, before it begins incurring any interest
cost due to deferred vendor payments.

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(3) Allow the State to reduce its interest expense
with reduced interest rates.
(4) Create a more competitive bidding process for
State contracts.
(c) For purposes of establishing the Program under this
Section, the Comptroller shall contract with an external
entity, to be known as the Program administrator, who, in
consultation with the Comptroller, shall be capable of
implementing the Program and capable of establishing the
criteria for the Program provided under subsection (b). The
Program administrator shall implement the Program without any
cash requirement from the State and only be compensated by a
transaction fee to implement and oversee the Program.
(d) The Comptroller shall establish by rule the
requirements that any capital provider to the Program must
meet in order to participate in the Program. The Program shall
allow for a capital provider to the Program to be affiliated
with, or be the Program administrator of, the Program if the
capital provider meets the minimum requirements to be a
capital provider that are established by the Comptroller. The
Comptroller is authorized to, but not required to, contract
exclusively with one entity that has the capability of
designing, implementing, and providing the required capital
necessary to implement the Program under this Section.
(e) The Program shall be accessible to any State vendor
that wishes to enter into the Program. A vendor shall assign

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its interest in a voucher to an eligible capital provider, and
select a timeframe upon which the capital provider shall pay
to the vendor 100% percent of the payable voucher, minus any
fees that may be associated with how soon the vendor wants to
be paid. A vendor may select to be paid by the capital provider
between 1 day and 90 days after an invoice is converted to a
voucher.
(f) The State shall pay for invoices on a payment cycle
that is suitable to the cash flow of the State or as may be
otherwise established under State law. The State shall pay an
interest rate on those invoices that shall be paid when the
invoices are paid. Notwithstanding any other provision of law
to the contrary, the interest rate shall be a variable
interest rate tied to commercially published rates, and shall
be lower than any other rate that may be charged for unpaid
invoices under this Act. The Comptroller is authorized to
enter into an agreement specifying late payment terms with
eligible capital providers for the purposes of paying a bill
or invoice under this Section.
(g) The Comptroller shall adopt all rules necessary for
the implementation of the Program created under this Section.