HB480
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Amend KRS 45A.035 to require the Finance and Administration Cabinet to promulgate administrative regulations to establish policies regarding timely payments, partial payments, reimbursement, and payment resolution process; create a new section of KRS Chapter 45A to require terms included in state government contracts to address timely payments, partial payment, a payment process for disbursement of funds, payment schedule, and a payment resolution process; establish timely payment policies to provide that all undisputed amounts shall be…
Introduced: January 23, 2026
Last action: April 14, 2026
In effect since July 15, 2026
Acts from the 2026 Regular Session that don't carry an emergency clause or set their own effective date took effect 90 days after the session adjourned (Ky. Constitution § 55).
Plain-language summary
This bill sets new rules for how state government must pay the businesses and individuals it hires through contracts. State agencies would be required to pay undisputed bills within 30 business days, and would owe interest if they pay late. The Finance and Administration Cabinet must also create a formal process for resolving payment disputes and report regularly to lawmakers on how late payments are handled. Who it may affect: businesses, contractors, and vendors that provide goods or services to Kentucky state government.
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Legislative History
Primary Sponsor
Co-sponsors (13)
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