RDCSB94 3863 4617
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)]
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.
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Appropriations to the
reengrossed bill:
1. Technical amendment.
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