HB4288

Illinois HB4288 amends the State Prompt Payment Act to establish interest penalties for late payments to contractors, subcontractors, and suppliers.

Illinois HB4288 amends the State Prompt Payment Act to ensure timely payments to contractors, subcontractors, and suppliers. The bill mandates that contractors pay subcontractors and suppliers within 10 business days or 15 calendar days after receiving payment from the State, with interest at 2% per month for late payments. It also requires State agencies to pay interest to vendors if they are late in processing approved bills or invoices. The bill includes provisions for administrative hearings and penalties for contractors who fail to make full payments without reasonable cause.