IL SB0104

Expands the State Prompt Payment Act to include covered health care services, developmental disability services, mental health services, substance abuse treatment, and youth services provided by vendors under contractual grant agreements.

Requires contractors to pay subcontractors and material suppliers electronically within 10 business days or 15 calendar days (whichever is earlier), or by mailed check postmarked within the same timeframe, upon receiving state payment.

Establishes a 2% monthly interest penalty on unpaid amounts if contractors fail to make timely payments to subcontractors and material suppliers without reasonable cause.

Requires proper invoices submitted on and after July 1, 2021 to include the names of all subcontractors and subconsultants to be paid and the amounts due to each.

Creates an administrative hearing process for subcontractors and material suppliers to challenge non-payment, with penalties including one-year debarment from state contracts for failure to pay as ordered, or six-month debarment for multiple violations within three years.