IL SB0688

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, 2021.

Requires the State Comptroller to determine an annual prompt payment interest rate by July 1 each year, with rates decreasing from 1% per month to a minimum of 0.25% per month (3% annually) or 2 times the Consumer Price Index increase, whichever is greater.

Establishes interest penalties for late payments calculated using the prompt payment interest rate, applied monthly or daily if payment is not issued within the 90-day period.

Exempts nursing facility services bills submitted under Article V of the Illinois Public Aid Code from the new interest rate formula while maintaining the 90-day payment deadline.

Maintains existing thresholds for interest payment, allowing states to withhold individual interest payments of $5 or less and accruing payments between $5 and $50 until the total reaches $50.