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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:

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

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

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     42-11.1-3. Time period for payment.

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

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

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submit a bill in accordance with contractually imposed time frames.

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     (b) Each contractor shall make payment to subcontractors within ten (10) calendar days of

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receipt of payment by the state; provided, however, that the contractor may setoff a payment due

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to a subcontractor by an amount equal to the amount of an unpaid legally enforceable debt owed

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by the subcontractor to the contractor or any amount which the contractor is entitled to withhold

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

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

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

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exists.

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

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

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

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

 

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

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

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noncompliance with the provisions of this section.

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

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

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

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contractor and subcontractor.

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     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

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

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further require prompt payment by the contractors to their subcontractors within ten (10) calendar

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

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payment provisions.

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     This act would take effect upon passage.

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