Connecticut 2019 Regular Session

Connecticut Senate Bill SB00683 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	LCO 5057 \\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00683-R02-
4		-	SB.docx
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	4	+	LCO No. 5057 1 of 2
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7	6		General Assembly Committee Bill No. 683
8	7		January Session, 2019
9	8		LCO No. 5057
10	9
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12	11		Referred to Committee on GOVERNMENT ADMINISTRATION
13	12		AND ELECTIONS
14	13
15	14
16	15		Introduced by:
17	16		(GAE)
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19	18
20	19
21	20		AN ACT CONCERNING A PENALTY FOR LATE PAYMENTS OF
22	21		STATE CONTRACTORS BY THIRD-PARTY ENTITIES.
23	22		Be it enacted by the Senate and House of Representatives in General
24	23		Assembly convened:
25	24
26	25		Section 1. Section 4a-71 of the general statutes is repealed and the 1
27	26		following is substituted in lieu thereof (Effective July 1, 2019): 2
28	27		(a) Except as provided in section 4a-72, each state department and 3
29	28		agency shall pay interest at a rate equal to the monthly effective yield 4
30	29		for the Short Term Investment Fund administered by the Treasurer 5
31	30		pursuant to sections 3-27a to 3-27f, inclusive, on amounts due on 6
32	31		written contracts for public works, personal services, goods and 7
33	32		services, equipment and travel, whenever such department or agency 8
34	33		fails to make timely payment. 9
35	34		(b) On and after July 1, 2019, each contract entered into or renewed 10
36	35		by a department or agency with a third-party provider to administer 11
37	36		the department's or agency's payments to state contractors shall 12
38	37		contain a provision requiring the third-party provider to pay a penalty 13
39		-	to a state contractor if the provider fails to pay the state contractor 14 Committee Bill No. 683
	38	+	to a state contractor if the provider fails to pay the state contractor 14
	39	+	Committee Bill No. 683
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46	44		within forty-five days of the provider's receipt of a properly completed 15
47	45		claim or receipt of goods or services. Such penalty shall be equivalent 16
48	46		to one-half per cent of the total value of the late payment. The 17
49	47		department or agency shall enforce such provision. 18
50	48		[(b)] (c) For the purposes of this section, (1) payment shall be timely 19
51	49		if: [(1)] (A) A check or warrant is mailed or delivered on the date 20
52	50		specified for the amount specified in the applicable contract 21
53	51		documents, or, if no date is specified, within forty-five days of receipt 22
54	52		of a properly completed claim or receipt of goods and services, 23
55	53		whichever is later; or [(2)] (B) for any amount that is required to be 24
56	54		withheld under state or federal law, a check or warrant is mailed or 25
57	55		delivered in the proper amount on the date the amount may be 26
58	56		released under the applicable law; and (2) "state contractor" means a 27
59	57		person, business entity or nonprofit organization that enters into a 28
60	58		state contract for public works, personal services, goods and services 29
61	59		and equipment and travel. 30
62	60		This act shall take effect as follows and shall amend the following
63	61		sections:
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65	63		Section 1 July 1, 2019 4a-71
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67		-	GAE Joint Favorable
	65	+	Statement of Purpose:
	66	+	To create a monetary penalty for third-party entities that fail to make
	67	+	timely payments to state contractors.
	68	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
	69	+	except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
	70	+	not underlined.]
	71	+
	72	+	Co-Sponsors: SEN. MOORE, 22nd Dist.
	73	+
	74	+	S.B. 683
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68	76