Advocacy News – Nov. 20, 2025
What’s happening: A new bill is being crafted to streamline and speed up payment services for small businesses that contract with state government.
What it means: The proposal would require state departments and agencies to pay qualified small businesses within 30 days of receiving a proper invoice or the goods/services. The goal is to improve payment predictability for small firms, especially those with tight cash flow, while increasing transparency and efficiency in state procurement. Elements of the bill include:
- Exceptions for good-faith invoice disputes
- A limited extension window for fiscal year closeouts or declared emergencies
- Annual reporting on average payment times and total interest paid
The bill, which has yet to be introduced, is modeled on prompt-pay laws in Texas and Florida that have been reported to be successful in supporting government service contracting.
Your voice matters: We want to hear from you! The Chamber is seeking input on how the bill could impact the business community. Let us know if you are a vendor with the state government and/or have thoughts on the potential benefits of instituting a prompt pay law in Michigan.
For more information or questions, contact Mike Alaimo.