HLS 10RS-1128 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2010
HOUSE BILL NO. 864
BY REPRESENTATIVE BARROW
CONTRACTS: Provides interest penalties if an agency fails to pay contracts in a timely
manner
AN ACT1
To enact R.S. 39:1498.3 and 1593.2, relative to procurement; to provide for interest2
penalties for agencies which make late payments on contracts; to provide for interest3
payments to contractors; and to provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 39:1498.3 and 1593.2 are hereby enacted to read as follows: 6
§1498.3. Interest penalties for late payments7
In the event any agency which has entered into a valid contract with a person8
or business fails to submit a payment according to the schedule of payments9
established in the terms of the contract, the agency shall pay, in addition to the10
regular payment due, interest penalties to the person or business as follows: 11
(1) If the agency submits payment to the person or business not less than12
sixty days and not more than eighty-nine days after the date the payment is due, the13
agency shall pay interest to the person or business in an amount equal to twenty14
percent of the amount of payment due. 15
(2) If the agency submits payment to the person or business not less than16
ninety days and not more than one hundred and nineteen days after the date the17
payment is due, the agency shall pay interest to the person or business in an amount18
equal to thirty percent of the amount of payment due.19 HLS 10RS-1128 ORIGINAL
HB NO. 864
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(3) If the agency submits payment to the person or business one hundred and1
twenty days or more after the date the payment is due, the agency shall pay interest2
to the person or business in an amount equal to forty percent of the amount of3
payment due.4
(4) Any interest due pursuant to this Section shall be paid in the same form5
and manner as the regular payment due under the terms of the contract.6
* * *7
§1593.2. Interest penalties for late payments8
In the event any agency which has entered into a valid contract with a person9
or business fails to submit a payment according to the schedule of payments10
established in the terms of the contract, the agency shall pay, in addition to the11
regular payment due, interest penalties to the person or business as follows: 12
(1) If the agency submits payment to the person or business not less than13
sixty days and not more than eighty-nine days after the date the payment is due, the14
agency shall pay interest to the person or business in an amount equal to twenty15
percent of the amount of payment due. 16
(2) If the agency submits payment to the person or business not less than17
ninety days and not more than one hundred and nineteen days after the date the18
payment is due, the agency shall pay interest to the person or business in an amount19
equal to thirty percent of the amount of payment due.20
(3) If the agency submits payment to the person or business one hundred and21
twenty or days or more after the date the payment is due, the agency shall pay22
interest to the person or business in an amount equal to forty percent of the amount23
of payment due.24
(4) Any interest due pursuant to this Section shall be paid in the same form25
and manner as the regular payment due under the terms of the contract.26 HLS 10RS-1128 ORIGINAL
HB NO. 864
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Barrow HB No. 864
Abstract: Provides for the payment of certain interest penalties by agencies making late
payments to persons or businesses with whom they hold a contract.
Proposed law provides that if an agency is late in making a payment on the terms of a
contract, the agency shall pay, in addition to the regular payment due, an interest penalty
which is a percent of the total payment due according to the number of days the payment is
late.
(1) For late payments 60 - 89 days past due, the agency shall pay an interest penalty of
20% of the total payment.
(2) For late payments 90 - 119 days past due, the agency shall pay an interest penalty of
30% of the total payment.
(3) For late payments more than 120 days past due, the agency shall pay an interest
penalty of 40% of the total payment.
Proposed law provides that the interest payment shall be paid in the same form and manner
as the payment due under the terms of the contract.
(Adds R.S. 39:1498.3 and 1593.2)