Louisiana 2011 2011 Regular Session

Louisiana House Bill HB378 Engrossed / Bill

                    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.