SB 3560 — COMPTROLLER-VENDOR PAYMENT

SB3560 EngrossedEnrolled LRB100 17563 RJF 32733 b AN ACT concerning finance.

SB3560 EngrossedEnrolled - 2 - LRB100 17563 RJF 32733 b "Assigned penalties" means penalties payable by the State in accordance with this Act that are assigned to the qualified purchaser of an assigned receivable.

SB3560 EngrossedEnrolled - 3 - LRB100 17563 RJF 32733 b "Prompt payment penalties" means penalties payable by the State in accordance with this Act.

SB3560 EngrossedEnrolled - 4 - LRB100 17563 RJF 32733 b "State offsets" means any amount deducted from payments made by the State in respect of any qualified account receivable due to the State's exercise of any offset or other contractual rights against a participating vendor.

SB3560 EngrossedEnrolled - 5 - LRB100 17563 RJF 32733 b (c) The State Comptroller and the Department of Central Management Services are authorized to establish and implement the Program under Section 3-3.

(2) the vendor's account receivable is eligible to SB3560 EngrossedEnrolled - 6 - LRB100 17563 RJF 32733 b accrue prompt payment penalty interest under this Act;

(f) FactorsThe toDepartment beshall consideredreview byand theapprove Departmentor indisapprove determiningeach whether an applicant shallseeking be designated as a qualified purchaser include,designation. but are not limited to, the following:

Factors to be considered by the Department in determining whether an applicant shall be designated as a qualified purchaser include, but are not limited to, the following:

(3) the ability of a qualified purchaser and its sub-participants to meet standards of responsibility substantially in accordance with the requirements of the Standards of Responsibility found in subsection (b) of Section 1.2046 of Title 44 of the Illinois Administrative Code concerning government contracts, procurement, and property management;

(4) the agreement of each qualified purchaser, at its SB3560 EngrossedEnrolled - 7 - LRB100 17563 RJF 32733 b (4) the agreement of each qualified purchaser, at its sole cost and expense, to administer and facilitate the operation of the Program with respect to that qualified purchaser, including, without limitation, assisting potential participating vendors with the application and assignment process;

Subject to the Program terms, all required accounts shall be maintained and controlled by the qualified purchaser at the qualified purchaser's sole cost and at no cost, whether in the form of fees or otherwise, to the participating SB3560 Enrolled - 8 - LRB100 17563 RJF 32733 b vendors;

SB3560 Engrossed - 8 - LRB100 17563 RJF 32733 b (9) the agreement of each qualified purchaser, at its sole cost and expense, to submit a monthly written report, in bothan hardacceptable copyelectronic and Excel format, to the State Comptroller or its designee and the Department or its designee, within 10 days after the end of each month, which, unless otherwise specified by the Department, at a minimum, shall contain:

(C) a listing of any payments of assigned penalties received from the State during the month, including the SB3560 Enrolled - 9 - LRB100 17563 RJF 32733 b amount of and date on which the payment was made, the SB3560 Engrossed - 9 - LRB100 17563 RJF 32733 b name of the participating vendor, the voucher number for the assigned penalty receivable, and the associated assigned receivable, including the State contract number, voucher number, and State agency associated with the assigned receivable, and identifying the relevant application period for each assigned receivable;

and (F) anythe otheraggregate datanumber theand Statedollar Comptrollervalue andof invoices purchased by the Departmentqualified maypurchaser reasonablyfor requestwhich fromno timevoucher tohas time;been submitted;

(10) the agreement of each qualified purchaser to use its reasonable best efforts, and for(G) any sub-participantother todata cause a qualified purchaser to use its reasonable best efforts, to diligently pursue receipt of assigned penalties associated with the assignedState receivables,Comptroller including,and without limitation, by promptly notifying the SB3560Department Engrossedmay -reasonably 10request -from LRB100time 17563to RJFtime; 32733 b relevant State agency that an assigned penalty is due and, if necessary, seeking payment of assigned penalties through the Illinois Court of Claims;

(10) the agreement of each qualified purchaser to use its reasonable best efforts, and for any sub-participant to SB3560 Enrolled - 10 - LRB100 17563 RJF 32733 b cause a qualified purchaser to use its reasonable best efforts, to diligently pursue receipt of assigned penalties associated with the assigned receivables, including, without limitation, by promptly notifying the relevant State agency that an assigned penalty is due and, if necessary, seeking payment of assigned penalties through the Illinois Court of Claims;

Any such termination shall be without prejudice to any rights a participating vendor may have against that qualified purchaser, in law or in equity, including, without limitation, the right to enforce the terms SB3560 Enrolled - 11 - LRB100 17563 RJF 32733 b of the assignment agreement and of the Program against the qualified purchaser.

(h) In determining whether any applicant shall be designated as a qualified purchaser, the Department shall have SB3560 Engrossed - 11 - LRB100 17563 RJF 32733 b the right to review or approve sub-participants that intend to purchase assigned receivables, directly or indirectly, by or through the applicant.

(i) The Program, as codified under this Section, shall commence July 1, 2018, and shall continue until terminated or suspended as follows:

(1) The Program may be terminated:terminated or suspended:

(A) by the State Comptroller, after consulting with the Department, by giving 10 days prior written notice to the SB3560 Enrolled - 12 - LRB100 17563 RJF 32733 b Department and the qualified purchasers in the Program;

or (B) by the Department, after consulting with the State Comptroller, by giving 10 days prior written notice to the State SB3560 Engrossed - 12 - LRB100 17563 RJF 32733 b Comptroller and the qualified purchasers in the Program.

(3) A qualified purchaser or sub-participant may terminate its participation in the Program, solely with respect to its own participation in the Program, in the event of any change to this Act from the form that existed on the date that the qualified purchaser or the sub-participant, as applicable, submitted the necessary documentation for admission into the Program if the change materially and adversely affects the qualified purchaser's SB3560 Enrolled - 13 - LRB100 17563 RJF 32733 b or the sub-participant's ability to purchase and receive payment on receivables on the terms described in this Section.

If the Program, a qualified purchaser, or a sub-participant SB3560 Engrossed - 13 - LRB100 17563 RJF 32733 b is terminated or suspended under paragraphs (1) or (2) of this subsection (i), the Program, qualified purchaser, or sub-participant may be reinstated only by written agreement of the State Comptroller and the Department.

No termination or suspension under paragraphs (1), (2), or (3) of this subsection (i) shall alter or affect the qualified purchaser's or sub-participant's obligations with respect to assigned receivables purchased by or through the qualified purchaser prior to the termination.

(a) TheWithin Department60 days after the effective date of Centralthis Managementamendatory ServicesAct shallof collectthe and100th certifyGeneral Assembly, at the followingtime informationof fromapplication, and annually on July 1 of each year, each qualified purchaser shall submit to the Department and the State Comptroller the following information about each person, director, owner, officer, association, financial backer, partnership, other entity, corporation, or trust with an indirect or direct financial interest in each qualified purchaser:

SB3560 Enrolled - 14 - LRB100 17563 RJF 32733 b (1) percent ownership;

and (4) resident mailing address,address; work mailing address, work telephone, and work email address.

(b)(5) Iftype a corporation or other entity associated with the qualified purchaser, the Department of Centralbusiness Managemententity, SB3560if Engrossedapplicable; - 14 - LRB100 17563 RJF 32733 b Services shall also collect and certify the following information from each qualified purchaser:

(1)(6) businessdates name,and mailingjurisdiction address,of telephonebusiness number,formation andor website,incorporation, if any;applicable;

(2)(7) typenames of businesscontrolling entity;shareholders, class of stock, percentage ownership;

(3)(8) datesany andindirect jurisdictionearnings ofresulting businessfrom formationthe orProgram; incorporation;

(4)and names(9) ofany controllingearnings shareholders,associated classwith ofthe stock,Program percentageto ownership;any parties not previously disclosed.

(5)(b) anyWithin indirect60 earningsdays resultingafter fromthe effective date of this amendatory Act of the Program;100th General Assembly, at the time of application, and annually on July 1 of each year, each trust associated with the qualified purchaser shall submit to the Department and the State Comptroller the following information:

and (6) any earnings associated with the Program to any parties not previously disclosed.

(c) If a trust associated with the qualified purchaser, the Department of Central Management Services shall also collect and certify the following information:

(d)SB3560 EachEnrolled person,- director,15 owner,- officer,LRB100 or17563 financialRJF backer32733 ofb a(c) Each qualified purchaser must submit a statement to the State Comptroller and the Department of Central Management Services disclosing whether hesuch qualified purchaser or sheany hasrelated previouslyperson, ordirector, currentlyowner, retainedofficer, or contractedfinancial SB3560backer Engrossedhas -previously 15or -currently LRB100retained 17563or RJFcontracted 32733 b with any registered lobbyist, lawyer, accountant, or other consultant to prepare the disclosure required under this Section.

(e) The Department of Central Management Services shall file information collected under subsections (a), (b), (c), and (d) of this Section with the Office of the Comptroller in a manner and form prescribed by the Office of the Comptroller.

The Office of the Comptroller shall make information collected under this Section publicly available.

The Office of the Comptroller shall adopt rules and policies to govern the reporting requirements of this Section.