2023 -- H 5333

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LC000391

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- PROMPT PAYMENT BY

DEPARTMENT OF ADMINISTRATION

     Introduced By: Representatives Edwards, Shanley, Potter, Morales, Chippendale,
Messier, Fogarty, and Sanchez

     Date Introduced: February 03, 2023

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 42-11.1-3 of the General Laws in Chapter 42-11.1 entitled "Prompt

Payment by Department of Administration" is hereby amended to read as follows:

     42-11.1-3. Time period for payment.

     (a) All bills shall be paid within thirty (30) working calendar days of receipt of a proper

invoice or other contractual dates for periodic payments, except when a contractor has failed to

submit a bill in accordance with contractually imposed time frames.

     (b) Each contractor shall make payment to subcontractors within ten (10) seven (7)

calendar days of receipt of payment by the state; provided, however, that the contractor may setoff

a payment due to a subcontractor by an amount equal to the amount of an unpaid legally enforceable

debt owed by the subcontractor to the contractor or any amount which the contractor is entitled to

withhold under the terms of the contract entered into by the contractor and subcontractor, or any

amount owed by the subcontractor to the contractor by way of a statutory obligation, or enforceable

lien, of which the contractor or subcontractor had previous knowledge or notice, or has reason to

believe exists.

     (c) The director of the department of administration shall have the power to impose

sanctions upon a contractor or subcontractor who has failed to comply with the provisions of this

section. Such sanctions may include, but are not limited to, the sanctions set forth in § 37-14.1-8.

The division of purchases, in consultation with the office of diversity, equity, and opportunity, shall

establish, by rules and regulations promulgated in accordance with chapter 35 of title 42, standards

for enforcement and procedures for receiving and reviewing inquiries regarding a contractor’s

noncompliance with the provisions of this section.

     (c)(d) This section shall not apply to contractors or subcontractors performing work

pursuant to a contract awarded by the department of transportation unless the subcontractor

provides a payment and performance bond in an amount equal to the contract between the

contractor and subcontractor.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- PROMPT PAYMENT BY

DEPARTMENT OF ADMINISTRATION

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     This act would require payment of debts be made by the department of administration

within thirty (30) calendar days for the timely payment of monies owed to contractors and would

further require prompt payment by the contractors to their subcontractors within seven (7) days and

would allow the department to impose sanctions for failure to comply with any prompt payment

provisions.

     This act would take effect upon passage.

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