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Bill

HB 4288

PROMPT PAYMENT-INTEREST

104th Regular Session Introduced by Dee Avelar and 14 co-sponsors

Illinois bill requiring state agencies to pay vendor invoices promptly with interest penalties for late payments to improve cash flow for contractors.

House Floor Amendment No. 1 Rule 19(c) / Re-referred to Rules Committee
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Bill Summary · HB 4288

Legislative bill overview

HB 4288 requires state agencies and entities to pay invoices from vendors within a specified timeframe and imposes interest penalties on late payments. The bill establishes prompt payment standards to improve cash flow for businesses contracting with the state, particularly small vendors who depend on timely government payments.

Why is this important

Delayed government payments create significant financial hardship for small businesses and contractors who often lack large cash reserves to absorb extended payment cycles. Prompt payment legislation with interest penalties incentivizes state agencies to prioritize timely payment processing and reduces the need for businesses to seek expensive short-term financing to cover operational costs while waiting for government reimbursement.

Potential points of contention

  • Cost to state budget: Interest penalties on late payments represent an additional fiscal obligation that could strain agency budgets, particularly if payment delays are systemic
  • Implementation burden: State agencies may lack adequate infrastructure, staffing, or procurement systems to meet aggressive payment timelines, potentially requiring significant investment to comply
  • Definition of "invoice acceptance": Disputes may arise over when an invoice is formally received and the payment clock begins, potentially creating litigation between vendors and the state

Compiled from official sources — confirm details with the bill’s official record.

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