An Illinois law that encourages the state to pay its bills on time is actually causing more fiscal headaches and wasting state resources, according to Senator Tim Bivins, who is introducing legislation that streamlines the process and saves the state money.
“A change last year in the Prompt Payment Act requires the State Comptroller’s Office to pay interest on money owed to state vendors. However, the new requirement has resulted in a process that is wasting state resources,” Senator Bivins said. “A constituent showed me 472 interest checks he has been sent by the Comptroller’s Office, some of them for less than the cost of postage to mail them!”
The 45th District Senator says the state should be paying interest on late payments, but a change is needed to cut the waste. He is sponsoring legislation that will require the Comptroller to send interest payments to vendors by direct deposit. Vendors will also be required to receive payment from the state by direct deposit.
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