IL SB1778

Extends the lapse period for paying outstanding state liabilities from 2 months (ending August 31) to 3 months (ending September 30), allowing more time to pay bills from expired appropriations

Reduces the payment deadline under the State Prompt Payment Act from 90 days to 60 days for fiscal year 2026 and beyond, with 1% monthly interest penalties for late payments

Requires state agencies to confirm receipt of contractor invoices within 5 business days, approve or reject bills within 30 days, and transmit approved amounts to the Comptroller within 30 days of receipt

Allows vendors to receive payment by non-electronic means if unable to receive electronic funds transfer or if they request another payment form

Permits state agencies to pay undisputed claims below $2,500 resulting from lapsed appropriations from current fiscal year funds without going through the Court of Claims, and establishes an online portal for vendors to submit and track lapsed appropriation claims electronically