The original instrument was prepared by Thomas L. Tyler. The following digest,
which does not constitute a part of the legislative instrument, was prepared by Ann
S. Brown.
DIGEST
SB 94 Reengrossed 2018 Regular Session Appel
Present law requires public entities to promptly pay all obligations arising under a public contract
when the obligations are due and payable under the contract. Requires that if the public entity fails
to make any progressive stage payment, without reasonable cause, within 45 days after receipt of a
certified request for payment, the entity is liable for reasonable attorney fees.
Proposed law adds provision that the public entity is also liable for interest charged at 0.5%
accumulated daily, not to exceed 15%.
Present law requires that if the public entity fails to make final payment after formal final acceptance
and within 45 days after receipt of a clear lien certificate, the entity is liable for reasonable attorney
fees. Proposed law adds provision that the entity is also liable for interest charged at 0.5%
accumulated daily, not to exceed 15%.
Proposed law provides that any interest paid by public entities on public contracts shall be disbursed
on a prorated basis among the contractors and subcontractors within ten business days of receipt of
the interest payment.
Effective August 1, 2018.
(Amends R.S. 38:2191(B))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the original bill
1. Changes the rate of interest charged from 1.5% to 0.5%.
Senate Floor Amendments to engrossed bill
1. Adds a provision requiring that any interest paid by public entities shall be disbursed
on a prorated basis among the contractors and subcontractors within 10 business days
of receipt of the interest payment.