Bill > SB1387

This bill amends the State Comptroller Act to mandate that all recurring payments to vendors must be made through direct deposit, with the paying State agency responsible for ensuring compliance. The bill defines "recurring payment" as any payment with a fixed deadline that occurs more than once, specifically including examples like utility payments, internet service payments, and construction service payments. Under this new provision (added as subsection (c-3)), State agencies will be required to use direct deposit for these types of repeat payments. The bill continues the existing trend of the State Comptroller's efforts to transition state payments to electronic methods, which helps reduce administrative costs and paper waste. If a State agency fails to use direct deposit for these recurring payments, the Comptroller may charge a processing fee of $2.50 per paper warrant, with the collected fees being deposited into the Comptroller's Administrative Fund. The bill takes effect immediately, requiring State agencies to quickly adapt their payment processes to comply with the new direct deposit mandate for recurring vendor payments.

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1387&GAID=18&DocTypeID=SB&SessionID=114&GA=104