The proposed bill aims to establish the "Prompt Payment Act of 2025," which mandates that registered and qualified vendors are entitled to prompt payment for legitimate, uncontested invoices submitted to state agencies. The bill outlines specific timelines for payment processing, requiring state agencies to issue payments within 45 days of receiving an invoice. If payments are delayed beyond this period, a 3% interest, compounded weekly, will be applied from the 46th day until the payment is made. Additionally, the bill defines when an invoice is considered received and allows state agencies to request updated invoices that include itemized interest before processing payments.

Furthermore, the bill stipulates that state agencies must process invoices within 10 business days and provides guidelines for handling invoices that are not promptly paid. It clarifies that state agencies are not liable for interest on payments owed by other agencies and outlines exceptions for vendors who are ineligible for payment due to various reasons, such as being debarred or having payments offset. The legislation emphasizes the importance of ensuring that only legitimate claims are processed, thereby protecting state resources while ensuring timely payments to vendors.

Statutes affected:
Introduced Version: 12-10-1, 12-10-2