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Bill

SB 2845

PROMPT PAYMENT-INTEREST

104th Regular Session Introduced by Christopher Belt and 15 co-sponsors

Illinois bill requiring state entities to pay bills by set deadlines or owe interest penalties to vendors and contractors.

Rule 3-9(a) / Re-referred to Assignments
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Bill Summary · SB 2845

Legislative bill overview

SB 2845 addresses prompt payment requirements and interest obligations, likely establishing or modifying timelines for state entities to pay vendors, contractors, or other parties, and specifying interest penalties for late payments. The bill was recently introduced in the Illinois Senate and is currently in the early committee assignment stage.

Why is this important

Prompt payment laws directly affect cash flow for small businesses, contractors, and vendors who depend on timely government payments. Interest provisions create financial incentives for government compliance and can offset costs that businesses incur when forced to wait for reimbursement or contract payment.

Potential points of contention

  • Fiscal impact on state budget: Mandatory interest payments could increase state expenditures, particularly if the bill applies retroactively or covers historical unpaid invoices
  • Definition and scope: Ambiguity about which state agencies, payment types, or vendor categories are covered could create implementation disputes or loopholes
  • Interest rate determination: Whether interest rates are fixed, variable, or tied to economic indices will affect overall state costs and fairness across payment delays of different lengths

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

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