LCO No. 4135 1 of 3 General Assembly Committee Bill No. 6666 January Session, 2019 LCO No. 4135 Referred to Committee on GOVERNMENT ADMINISTRATION AND ELECTIONS Introduced by: (GAE) AN ACT REQUIRING THE PROMPT PAYMENT OF CO NTRACTORS. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Section 4a-60j of the general statutes is repealed and the 1 following is substituted in lieu thereof (Effective October 1, 2019): 2 [A] Unless otherwise agreed by the parties in the terms of a written 3 contract, a small contractor shall receive payment on a contract 4 awarded to him or her under the provisions of sections 4a-60g to 4a-5 60i, inclusive, no later than [thirty] twenty-five days from the due date 6 of any such payment on such contract. 7 Sec. 2. Subsection (a) of section 42-158j of the general statutes is 8 repealed and the following is substituted in lieu thereof (Effective 9 October 1, 2019): 10 (a) [Each] Unless otherwise agreed by the parties in the terms of a 11 written construction contract, each construction contract shall contain 12 the following provisions: (1) A requirement that the owner pay any 13 amounts due to any contractor in a direct contractual relationship with 14 Committee Bill No. 6666 LCO No. 4135 2 of 3 the owner, or due to any subcontractor or supplier in a direct 15 contractual relationship with the contractor, whether for labor 16 performed or materials furnished, not later than thirty days after the 17 date any written request for such payment has been made to the owner 18 by such contractor, subcontractor or supplier; (2) a requirement that 19 the contractor pay any amounts due any subcontractor or supplier, 20 whether for labor performed or materials furnished, not later than 21 [thirty] twenty-five days after the date the contractor receives payment 22 from the owner which encompasses labor performed or materials 23 furnished by such subcontractor or supplier; and (3) a requirement that 24 the contractor shall include in each of its subcontracts a provision 25 requiring each subcontractor and supplier to pay any amounts due any 26 of its subcontractors or suppliers, whether for labor performed or 27 materials furnished, not later than [thirty] twenty-five days after the 28 date such subcontractor or supplier receives a payment from the 29 contractor which encompasses labor performed or materials furnished 30 by such subcontractor or supplier. 31 This act shall take effect as follows and shall amend the following sections: Section 1 October 1, 2019 4a-60j Sec. 2 October 1, 2019 42-158j(a) Statement of Purpose: To exempt parties of certain commercial and state set -aside construction contracts from statutory prompt payment provisions if they explicitly agree to different payment terms in a written construction contract, and to shorten the time periods for required payment of general contractors and subcontractors on both public and private construction contracts from thirty days to twenty-five days, in certain cases. [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] Co-Sponsors: REP. HALL, 7th Dist. Committee Bill No. 6666 LCO No. 4135 3 of 3 H.B. 6666