Bill > HB622

This bill introduces comprehensive changes to Kentucky's state procurement and payment processes, focusing on improving contract management and timely payments. The legislation expands the definition of "contract" in state law to include various types of agreements like memoranda of agreement, program administration contracts, and personal service contracts. It requires the Finance and Administration Cabinet to establish administrative regulations governing timely payments, with specific provisions mandating that undisputed amounts must be paid within 30 business days of receiving goods, services, or an invoice. If payments are not made on time, contractors will be entitled to a 1% monthly interest penalty. The bill also introduces a structured process for invoice rejections, allowing contractors a 10-day correction period and establishing procedures for partial payments. Additionally, the legislation requires the Finance and Administration Cabinet to submit detailed reports every six months to legislative committees about late payment contract disputes, including information about the purchasing agencies involved, unpaid amounts, and dispute resolutions. The bill aims to create more transparent, accountable, and efficient payment processes for state government contracts, protecting contractors from significant financial delays.

Budget and Finance, Government Affairs

https://apps.legislature.ky.gov/record/25RS/hb622.html