SB2057 Summary

• Amends the State Prompt Payment Act to extend the payment deadline from 60 days to 90 days for bills approved on or after July 1, 2019, with interest penalties assessed for late payment.

• Requires the State Comptroller to determine an annual prompt payment interest rate by July 1 of each year, with the rate set at the greater of 0.25% per month (3% annually) or 2 times the Consumer Price Index increase from the prior 12 months.

• Reduces interest penalty rates for bills approved after July 1, 2019, from 1.0-2.0% per month to a variable rate based on the Comptroller's annual determination, except for nursing facility services under the Illinois Public Aid Code.

• Maintains existing provisions regarding interest payment thresholds, exemptions for defective bills with 30-day notice for construction-related invoices, and special rules for pharmacy and healthcare provider claims.

• Takes effect immediately upon becoming law.