Committee advances Prompt Payment Act to require agencies to pay vendors within 45 days
Get AI-powered insights, summaries, and transcripts
Subscribe
Summary
A committee substitute for House Bill 2152 would require state agencies to pay vendors and grantees within 45 days for legitimate claims and create a state-auditor-published list of late-paying agencies.
The Senate Finance Committee advanced a committee substitute for House Bill 2152, described by counsel as the Prompt Payment Act of 02/2025. Counsel said current law does not set a standard time frame for state agencies to pay vendors; the bill would require agencies to pay vendors and grantees within 45 days of a legitimate claim for payment.
The committee substitute defines a "legitimate claim for payment" to include notification of an entitlement to state funds under a state grant award and an uncontested vendor invoice for commodities and services. Under the bill, agencies that fail to meet the 45‑day requirement must report that failure to the state auditor. Vendors or grantees who do not receive payment may also report failures. The state auditor would publish a list of noncompliant agencies — described in testimony as a "bad actor list" — and update it at least monthly.
The vice chair moved that the committee substitute be reported to the full Senate with a recommendation that it do pass; the committee approved the motion by voice vote.