Louisiana 2014 2014 Regular Session

Louisiana Senate Bill SB316 Comm Sub / Analysis

                    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))