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General Assembly Committee Bill No. 683
January Session, 2019
LCO No. 5057
Referred to Committee on GOVERNMENT ADMINISTRATION
AND ELECTIONS
Introduced by:
(GAE)
AN ACT CONCERNING A PENALTY FOR LATE PAYMENTS OF
STATE CONTRACTORS BY THIRD-PARTY ENTITIES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 4a-71 of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective July 1, 2019): 2
(a) Except as provided in section 4a-72, each state department and 3
agency shall pay interest at a rate equal to the monthly effective yield 4
for the Short Term Investment Fund administered by the Treasurer 5
pursuant to sections 3-27a to 3-27f, inclusive, on amounts due on 6
written contracts for public works, personal services, goods and 7
services, equipment and travel, whenever such department or agency 8
fails to make timely payment. 9
(b) On and after July 1, 2019, each contract entered into or renewed 10
by a department or agency with a third-party provider to administer 11
the department's or agency's payments to state contractors shall 12
contain a provision requiring the third-party provider to pay a penalty 13
to a state contractor if the provider fails to pay the state contractor 14
Committee Bill No. 683
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within forty-five days of the provider's receipt of a properly completed 15
claim or receipt of goods or services. Such penalty shall be equivalent 16
to one-half per cent of the total value of the late payment. The 17
department or agency shall enforce such provision. 18
[(b)] (c) For the purposes of this section, (1) payment shall be timely 19
if: [(1)] (A) A check or warrant is mailed or delivered on the date 20
specified for the amount specified in the applicable contract 21
documents, or, if no date is specified, within forty-five days of receipt 22
of a properly completed claim or receipt of goods and services, 23
whichever is later; or [(2)] (B) for any amount that is required to be 24
withheld under state or federal law, a check or warrant is mailed or 25
delivered in the proper amount on the date the amount may be 26
released under the applicable law; and (2) "state contractor" means a 27
person, business entity or nonprofit organization that enters into a 28
state contract for public works, personal services, goods and services 29
and equipment and travel. 30
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2019 4a-71
Statement of Purpose:
To create a monetary penalty for third-party entities that fail to make
timely payments to state contractors.
[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: SEN. MOORE, 22nd Dist.
S.B. 683