Introduced January 23, 2026
HB480
Log in to followAN ACT relating to state contracts.
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…
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
Shawn McPherson
Representative · House District 022
Co-sponsors (13)
Jason Petrie
Representative · House District 016
Adam Bowling
Representative · House District 087
Steve Bratcher
Representative · House District 025
Anne Donworth
Representative · House District 076
Daniel Grossberg
Representative · House District 030
Vanessa Grossl
Representative · House District 088
Samara Heavrin
Representative · House District 018
Kim King
Representative · House District 055
Nima Kulkarni
Representative · House District 040
Chris Lewis
Representative · House District 029
Rachel Roarx
Representative · House District 038
Sarah Stalker
Representative · House District 034
Richard White
Representative · House District 099
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