KY HB480

Requires all state contracts to include provisions for timely payments within 30 business days, with a 1% monthly interest penalty applied to undisputed amounts not paid on time

Mandates purchasing agencies notify contractors within 15 business days if an invoice is rejected or has errors, with contractors receiving a 10 calendar day correction period

Allows contractors who take out loans due to late state payments to recover interest and credit costs from the purchasing agency

Requires the Finance and Administration Cabinet to promulgate administrative regulations by October 1, 2026, establishing procedures for invoice corrections, partial payments, and a payment resolution process

Mandates biannual reporting to the Legislative Research Commission beginning July 1, 2027, detailing late payment disputes including the agency involved, unpaid amounts, duration of delays, and determinations issued