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KentuckyHB 4802026 Regular SessionHouse

AN ACT relating to state contracts.

Sponsored By: Shawn McPherson (Republican)

Became Law

Administrative Regulations And ProceedingsContractsPublic ProcurementReports MandatedState Agencies

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 2 benefits, 0 costs, 1 mixed.

Faster payment disputes and public reports

By October 1, 2026, the secretary sets rules for fixing invoices, partial payments, and a payment dispute process. Agencies must answer a dispute within 10 days. The secretary must decide within 30 days, and the agency must pay within 5 business days after that decision. The Cabinet must post the payment resolution steps online by October 1, 2026. Starting July 1, 2027, the Cabinet files reports every six months on late‑payment disputes, listing agencies, amounts, how long payments were late, and decisions. The secretary can also set rules for reverse auctions and other purchasing procedures.

Interest and cost recovery for state contractors

Undisputed amounts on Kentucky state contracts must be paid within 30 business days or as the contract says. If payment is late, you earn 1% interest for each month or part of a month after day 30. If you used a loan or line of credit to keep working because of the delay, you can recover the interest and credit costs. The purchasing agency must pay any interest penalty and cannot take it from your contract funds.

Clear invoice and partial payment rules for state contracts

State contracts must spell out the invoice format, delivery, required documents, and payment milestones. Contracts may include a starter payment when the project begins. Agencies must tell you about invoice errors or missing info within 15 business days. You then have 10 calendar days to fix it without resetting the late‑payment clock if you correct on time. Contracts must say if partial payments are allowed; some contracts may bar partial payments.

Sponsors & Cosponsors

Sponsor

  • Shawn McPherson

    Republican • House

Cosponsors

  • Adam Bowling

    Republican • House

  • Anne Gay Donworth

    Democrat • House

  • Chris Lewis

    Republican • House

  • Daniel Grossberg

    Democrat • House

  • Jason Petrie

    Republican • House

  • Kim King

    Republican • House

  • Nima Kulkarni

    Democrat • House

  • Rachel Roarx

    Democrat • House

  • Richard White

    Republican • House

  • Steve Bratcher

    Republican • House

  • Samara Heavrin

    Republican • House

  • Sarah Stalker

    Democrat • House

  • Vanessa Grossl

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 134 • No: 0

Senate vote • 3/31/2026

3rd reading, passed

Yes: 38 • No: 0

House vote • 2/17/2026

3rd reading, passed

Yes: 96 • No: 0

Actions Timeline

  1. became law without Governor's Signature (Acts Ch. 147)

    4/14/2026

  2. filed without Governor's signature with the Secretary of State

    4/13/2026

  3. delivered to Governor

    4/1/2026

  4. enrolled, signed by President of the Senate

    4/1/2026House

  5. enrolled, signed by Speaker of the House

    4/1/2026House

  6. received in House

    3/31/2026House

  7. 3rd reading, passed 38-0

    3/31/2026Senate

  8. posted for passage in the Consent Orders of the Day for Tuesday, March 31 2026

    3/27/2026Senate

  9. 2nd reading, to Rules as a consent bill

    3/27/2026Senate

  10. reported favorably, 1st reading, to Consent Calendar

    3/26/2026Senate

  11. to Economic Development, Tourism, & Labor (S)

    3/24/2026Senate

  12. to Committee on Committees (S)

    2/18/2026Senate

  13. received in Senate

    2/18/2026Senate

  14. 3rd reading, passed 96-0

    2/17/2026House

  15. floor amendment (1) filed

    2/17/2026House

  16. posted for passage in the Regular Orders of the Day for Tuesday, February 17 2026

    2/13/2026House

  17. 2nd reading, to Rules

    2/13/2026House

  18. reported favorably, 1st reading, to Calendar

    2/12/2026House

  19. to State Government (H)

    2/2/2026House

  20. to Committee on Committees (H)

    1/23/2026House

  21. introduced in House

    1/23/2026House

Bill Text

  • Current

    2/17/2026

    PDF

  • Introduced

    2/17/2026

    PDF

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