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Veto override puts some social service providers into Prompt Payment Act

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Illinois

* Illinois Collaboration on Youth…

State lawmakers sent a clear message that children and youth service providers have the right to be compensated for the work they do and overrode Governor Bruce Rauner’s veto of HB3143 on Wednesday. […]

Before the Senate’s decision to override the governor’s veto on Wednesday by a vote of 37-16-1, some businesses with state contracts were entitled to timely payment while others were denied the same remedies under the law. Those contractors included providers serving abused and neglected children, young people facing incarceration, youth experiencing homelessness, youth and families in crisis, and school-aged youth. “Over the past two years, children and youth service providers have buoyed the state and saved Illinois from the brink of collapse during the politically driven budget crisis,” HB3143 House Sponsor Robyn Gabel (D-Evanston) said. “Now providers have a mechanism that will safeguard them from future risk of keeping the state afloat.”

Carrying the state has come at a steep cost. Many providers were forced to suspend services, lay off staff, close programs, and take significant pay decreases in an attempt to salvage the future of their organizations.

* From the bill’s synopsis…

Amends the State Prompt Payment Act. In the definition of “goods or services furnished to the State”, includes services concerning prevention, intervention, or treatment services and supports for youth provided by a vendor by virtue of a contractual grant agreement. In the definition of “proper bill or invoice”, includes invoices issued under a contractual grant agreement.

Fiscal Note (Dept. of Human Services)
Based on a conservative definition, the Department of Human Services estimates that the fiscal impact for the applicable appropriations is approximately $0.5 million to $1.0 million.

posted by Rich Miller
Monday, Nov 13, 17 @ 12:33 pm

Comments

Rauner: Curses, foiled again

Comment by PublicServant Monday, Nov 13, 17 @ 12:40 pm
Apparently not paying them wasn’t enough. He wanted to tell them to go pound sand when it comes to interest penalties.

Comment by Demoralized Monday, Nov 13, 17 @ 1:08 pm
Now providers can direct their resources to their missions, instead of to bank fees and interest on lines of credit. Plus, we will be able to take advantage of vendor assistance programs if we need to.

Comment by Andrea Durbin Monday, Nov 13, 17 @ 2:42 pm
Prompt payment act shouldn’t be so high; it’s a waste of taxpayer money. Interest rate should be the same as you get on an unpaid court judgment, the t-bill rate

Comment by Ghost Monday, Nov 13, 17 @ 3:17 pm
Ghost, unpaid judgments accrue 9% interest, unless the law changed recently.

Comment by Arthur Andersen Monday, Nov 13, 17 @ 6:13 pm