Synopsis As Introduced Amends the State Prompt Payment Act. Provides that if a State official or agency is late in payment of a vendor's bill or invoice for goods or services furnished to the State and the vendor is forced to borrow money to make up for the late payment from the State, in addition to any other payment the State is required to make to the vendor, the State must pay the vendor an amount equal to the vendor's debt service costs related to the money the vendor borrowed as a result of the late payment.
Senate Committee Amendment No. 1 Provides that the requirement that the State pay a vendor's debt service costs as a result of late payment by the State only applies if the State official or agency is more than 60 days late in payment. Provides that the vendor's debt service costs can be no greater than the prime rate less any interest penalties the State is required to make to the vendor under other provisions of the State Prompt Payment Act.