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Business Development Services - UIC

Senate Bill 51 (SB51)

The implementation of Public Act 09-795 of 2009 (also known as Senate Bill 51 or SB51) became effective July 1, 2010.

The implication of  SB51 on revenue-generating contracts, from our perspective at OBDS, is that the University units/departments/colleges providing services to any other State of Illinois agencies should note that pursuant to 30ILCS/20-80(d); "they shall not be paid for goods that were received or services rendered before the contract was reduced to writing and signed by all parties".

In other words, if you provide goods or services to a state agency before the contract is signed, the agency will have a forceful legal argument that the University may not receive payment for anything that was provided before the agency signed the contract. You may be at a considerable loss if this occurs.

As part of the contract development process, it is our preference for the client to sign the agreement first.  This will help us minimize the risk and exposure to uncollectable revenue as a result of SB 51.

Last Updated: August 17, 2010

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