HLS 11RS-906 REENGROSSED Page 1 of 2 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2011 HOUSE BILL NO. 378 BY REPRESENTATIVE ELLINGTON Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. PUBLIC CONTRACTS: Provides relative to payments made under public contracts AN ACT1 To amend and reenact R.S. 38:2191, relative to public contracts; to provide for progressive2 stage payments made under public contracts; and to provide for related matters.3 Be it enacted by the Legislature of Louisiana:4 Section 1. R.S. 38:2191 is hereby amended and reenacted to read as follows: 5 ยง2191. Payments under contract 6 A. All public entities shall promptly pay all obligations arising under public7 contracts when the obligations become due and payable under the contract. All8 progressive stage payments and final payments shall be paid when they respectively9 become due and payable under the contract. 10 B. Any public entity failing to make any final payments after formal final11 acceptance and within forty-five days following receipt of a clear lien certificate by12 the public entity shall be liable for reasonable attorneys attorney fees. 13 C. The provisions of this Section shall not be subject to waiver by contract.14 D. Any public entity failing to make any progressive stage payments15 arbitrarily or without reasonable cause, or any final payment when due as provided16 in this Section, shall be subject to mandamus to compel the payment of the sums due17 under the contract up to the amount of the appropriation made for the award and18 execution of the contract. 19 HLS 11RS-906 REENGROSSED HB NO. 378 Page 2 of 2 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)] Ellington HB No. 378 Abstract: Provides for payment of progressive stage payments under public contracts. Present law provides that all public entities must promptly pay all progressive stage payments and final payments when they become due and payable under the contract, without waiver by contract. Further provides that any public entity failing to make any final payments after formal final acceptance and within 45 days following receipt of a clear lien certificate by the public entity shall be liable for reasonable attorney fees. Proposed law retains present law and adds that any public entity failing to make any progressive stage payments arbitrarily or without reasonable cause, or any final payment when due as set out in present law, shall be subject to mandamus to compel the payment of the sums due under the contract up to the amount of the appropriation made for the award and execution of the contract. (Amends R.S. 38:2191) Summary of Amendments Adopted by House Committee Amendments Proposed by House Committee on Transportation, Highways and Public Works to the original bill. 1. Deleted language stating any public entity failing to make progressive payments within 30 days of the due date shall be liable for reasonable attorney fees. 2. Added that any public entity failing to make any progressive stage payments arbitrarily or without reasonable cause, or any final payment when due as set out in present law, shall be subject to mandamus to compel the payment of the sums due under the contract up to the amount of the appropriation made for the award and execution of the contract. 3. Made technical changes.