SB2255 Summary

• Amends the State Prompt Payment Act to establish a new interest rate calculation method for bills approved for payment on or after July 1, 2018.

• Sets the prompt payment interest rate as the greater of either 3% or 2 times the percentage increase in the Consumer Price Index For All Urban Consumers during the 12-month period preceding each July 1.

• Requires the State Comptroller to determine and announce the prompt payment interest rate by July 1, 2018, and annually thereafter by July 1.

• Extends the payment deadline from 60 days to 90 days for bills approved on or after July 1, 2018, with interest penalties accruing monthly or daily (0.033% per day) after the 90-day period.

• Maintains the existing 1% and 2% interest rates for bills approved prior to July 1, 2018, with an effective date of immediately upon becoming law.