Louisiana 2014 2014 Regular Session

Louisiana Senate Bill SB316 Engrossed / Bill

                    SLS 14RS-554	ENGROSSED
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2014
SENATE BILL NO. 316
BY SENATOR DONAHUE 
PUBLIC CONTRACTS.  Provides relative to payments under public contracts.(8/1/14)
AN ACT1
To amend and reenact R.S. 38:2191(B) and (D), relative to public contracts; to provide with2
respect to progressive stage payments made under public contracts; to provide with3
respect to payment of change orders made under public contracts; and to provide for4
related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 38:2191(B) and (D) are hereby amended and reenacted to read as7
follows: 8
ยง2191.  Payments under contract9
*          *          *10
B. Any public entity failing to make any progressive stage payment11
within forty-five days following receipt of a certified request for payment by the12
public entity without reasonable cause shall be liable for reasonable attorney13
fees. Any public entity failing to make any final payments after formal final14
acceptance and within forty-five days following receipt of a clear lien certificate by15
the public entity shall be liable for reasonable attorney fees.16
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SLS 14RS-554	ENGROSSED
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
D. Any public entity failing to make any progressive stage payments1
arbitrarily or without reasonable cause, or any final payment when due as provided2
in this Section, shall be subject to mandamus to compel the payment of the sums due3
under the contract up to the amount of the appropriation made for the award and4
execution of the contract, including any authorized change orders.5
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Sharon F. Lyles.
DIGEST
Donahue (SB 316)
Present law requires all public entities to promptly pay all obligation arising under public
contracts. Requires public entities to pay progressive stage payments and final payments
when they become due and payable under the contract.
Present law 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 is liable for reasonable attorney fees.
Proposed law retains present law and adds liability for reasonable attorney fees when a
public entity fails to pay any progressive stage payment within 45 days following receipt of
a certified request for payment by the public entity without reasonable cause.
Present law provides that any public entity who fails to pay any progressive stage payments
arbitrarily or without reasonable cause, or any final payment when due under existing law,
is 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.
Proposed law retains present law and adds that a public entity is subject to mandamus to
compel payment of authorized plan changes.
Effective August 1, 2014.
(Amends R.S. 38:2191(B) and (D))