Illinois Administrative Code › Title 74 - PUBLIC FINANCE › Part 900 - JOINT RULES OF THE COMPTROLLER AND THE DEPARTMENT OF CENTRAL MANAGEMENT SERVICES: PROMPT PAYMENT › Section 900.125 - Vendor Payment Program

Current through Register Vol. 48, No. 28, July 12, 2024
The requirements set forth in this Section establish the
				criteria for participation by participating vendors and qualified purchasers in
				a vendor payment program. Information regarding the program may be found at
				http://www.payments.illinois.gov.
a)
			 Authority. The State Comptroller and the Department are authorized to establish
			 and implement the program pursuant to Section 3-3 of the Prompt Payment
			 Act.
b) Applicability. This Section
			 applies to all qualified accounts receivable not otherwise excluded from
			 receiving prompt payment interest pursuant to Section
			 900.120.
			 Section
			 900.125
			 shall not apply to the purchase of any accounts receivable related to payments
			 made under a medical assistance program, including Medicaid payments, or any
			 other purchase of accounts receivable that is otherwise prohibited by
			 law.
c) Definitions
"Applicant" is any entity seeking to be designated as a
				qualified purchaser.
"Application Period" is the time period when the program is
				accepting applications as determined by the Department.
"Assigned Penalties" are penalties payable by the State in
				accordance with the Prompt Payment Act and this Part that are assigned to the
				qualified purchaser of an assigned receivable.
"Assigned Receivable" is the base invoice amount of a qualified
				account receivable and any associated assigned penalties due, currently and in
				the future, in accordance with the Prompt Payment Act.
"Assignment Agreement" is an agreement executed and delivered
				by a participating vendor and a qualified purchaser pursuant to which the
				participating vendor will assign one or more qualified accounts receivable to
				the qualified purchaser and make certain representations and warranties in
				respect thereof.
"Base Invoice Amount" is the unpaid principal amount of the
				invoice associated with an assigned receivable.
"Department" is the Department of Central Management
				Services.
"Medical Assistance Program" is any program which provides
				medical assistance pursuant to Article V of the Illinois Public Aid Code [305
				ILCS 5/5 ], including Medicaid.
"Participating Vendor" is a vendor whose application for the
				sale of a qualified account receivable is accepted for purchase by a qualified
				purchaser pursuant to the program terms.
"Program" is a vendor payment program.
"Prompt Payment Act" is the State Prompt Payment Act [30 ILCS
				540 ].
"Prompt Payment Penalties" are penalties payable by the State
				in accordance with the Prompt Payment Act and this Part.
"Purchase Price" is 100% of the base invoice amount associated
				with an assigned receivable minus:
* any deductions against the assigned receivable arising from
				State offsets; and
* if and to the extent exercised by a qualified purchaser,
				other deductions for amounts owed by the participating vendor to the qualified
				purchaser for State offsets applied against other accounts receivable assigned
				by the participating vendor to the qualified purchaser pursuant to the
				program.
"Qualified Account Receivable" is an account receivable due and
				payable by the State that is outstanding for 90 days or more, is eligible to
				accrue prompt payment penalties under the Prompt Payment Act and is verified by
				the relevant State agency. A qualified account receivable shall not include any
				account receivable related to medical assistance program (including Medicaid)
				payments or any other accounts receivable, the transfer or assignment of which
				is prohibited by, or otherwise prevented by, applicable law.
"Qualified Purchaser" is any entity that, during any
				application period, is approved by the Department to participate in the program
				on the basis of certain qualifying criteria as determined by the
				Department.
"State" is the State of Illinois.
"State Comptroller" is the Illinois Office of the
				Comptroller.
"State Offsets" is 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. For the purpose of this Section, State offsets include statutorily
				required administrative fees imposed pursuant to the State Comptroller Act [15
				ILCS 405 ].
"Sub-Participant" is any individual or entity that intends to
				purchase assigned receivables, directly or indirectly, by or through an
				applicant or qualified purchaser for the purposes of the program.
"Sub-Participant Certification" is an instrument executed and
				delivered to the Department by a sub-participant pursuant to which the
				sub-participant certifies its agreement, among others, to be bound by the terms
				and conditions of the program as a condition to its participation in the
				program as a sub-participant.
d) Criteria for a vendor payment program.
1) Under the program, qualified purchasers
			 may purchase from participating vendors certain qualified accounts receivable
			 owed by the State to the participating vendors. A participating vendor shall
			 not simultaneously apply to sell the same qualified account receivable to more
			 than one qualified purchaser.
2) In
			 consideration of the payment of the purchase price, a participating vendor
			 shall assign to the qualified purchaser all of its rights to payment of the
			 qualified account receivable, including all current and future prompt payment
			 penalties due relating to that qualified account receivable in accordance with
			 the Prompt Payment Act.