IL HB1156

State officials and agencies must pay vendor bills within 60 days of receipt of a proper bill or invoice, or pay interest penalties of 1.0% monthly for general bills and 2.0% monthly for non-pharmacy/nursing facility bills under Article V of the Illinois Public Aid Code.

Pharmacy and nursing facility service bills under Article V of the Illinois Public Aid Code are subject to a 1.0% monthly interest penalty if payment is delayed beyond 60 days.

State agencies must review bills timely after receipt and notify vendors of any defects preventing payment as soon as possible, with construction-related bills requiring notice within 30 days; partially disapproved construction bills must have non-disapproved portions paid.

Interest penalties of $50 or more must be automatically paid to vendors, while penalties under $50 are accrued until reaching $50 threshold, except accrued interest at fiscal year-end of $5 or more must be paid.

Public Act 96-1501 provisions reducing pharmacy claim interest rates to 1.0% per month apply to pharmacy bills received on or after November 26, 2010 (60 days before the January 25, 2011 effective date).