The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Martha S. Hess.
DIGEST
SB 265 Original 2020 Regular Session Peterson
Present law provides that public entities shall 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 and 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 and interest charged at 0.5% accumulated daily, not to exceed 15%.
Present 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.
Present law provides that the provisions of present law may not be waived by contract. Proposed law
changes present law to allow the provisions of present law to be waived by contract.
Effective August 1, 2020.
(Amends R.S. 38:2191(C))