Chapter
312
2006 -- S 2839 SUBSTITUTE A
Enacted 07/04/06
A N A
C T
RELATING TO PUBLIC
PROPERTY AND WORKS -- ACTIONS AGAINST THE STATE ON HIGHWAY AND PUBLIC WORKS
CONTRACTS
Introduced By: Senators
Gallo, and Walaska
Date Introduced: February
16, 2006
It is
enacted by the General Assembly as follows:
SECTION
1. Section 37-13.1-1 of the General Laws in Chapter 37-13.1 entitled
"Actions
Against
the State on Highway and Public Works Contracts" is hereby amended to read
as follows:
37-13.1-1.
Suits allowed -- Jurisdiction -- Statute of limitations -- Procedure. –
(a)
Any
person, firm, or corporation which is awarded a contract subsequent to July 1,
1977, with the
state of
Rhode Island, acting through any of its departments, commissions, or other
agencies, for
the
design, construction, repair, or alteration of any state highway, bridge, or
public works other
than
those contracts which are covered by the public works arbitration act may, in
the event of
any
disputed claims under the contract, bring an action against the state of Rhode
Island in the
superior
court for Providence county for the purpose of having the claims determined,
provided
notice
of the general nature of the claims shall have been given in writing to the
department
administering
the contract in accordance with the contract specifications set forth for the
specific
contract.
No action shall be brought under this section later than one year from the date
of the
acceptance
of the work by the agency head as so evidenced; provided, however, that no
action
shall be
brought under this section on any contract awarded prior to July 1, 1977.
Acceptance of
an
amount offered as final payment shall preclude any person, firm, or corporation
from bringing
a claim
under this section. The action shall be tried to the court without a jury. All
legal defenses
except
governmental immunity shall be reserved to the state. Any action brought under
this
section
shall be privileged in respect to assignment for trial upon motion of either
party.
(b)
Any party bringing an action under this section shall be entitled to an award
of
prejudgment
interest beginning with the filing date of such court action. Said interest
shall be
computed
daily to the date of payment and shall be compounded annually. Interest shall
be
calculated
as follows:
(1)
Where the period for which interest is owed does not exceed one year, interest
shall
be
calculated for such period at an annual rate equal to the weekly average one
year constant
maturity
treasury yield, as published by the board of governors of the federal reserve
system, for
the
calendar week preceding the filing date of the court action under this section.
(2)
Where the period for which interest is owed is more than one year, interest for
the
first
year shall be calculated in accordance with subdivision (1) of this section and
interest for
each
additional year shall be calculated on the combined amount of the principal and
accrued
interest
at an annual rate equal to the weekly average one year constant maturity
treasury yield, as
published
by the board of governors of the federal reserve system, for the calendar week
preceding
the beginning of each additional year.
In
the event the one year constant maturity treasury yield is converted to a
different
standard
reference base or otherwise revised, the determination of interest shall be
made with the
use
of such converted or revised standard reference base. In the event the board of
governors of
the
federal reserve system ceases to publish a converted or revised rate, interest
shall be
calculated
at a rate published by the United States Treasury Department, or other
comparable
entity,
that establishes a rate reflecting or best approximating the market conditions
for one year
investments
at the time of the taking and each additional year that interest is owed
pursuant to
subdivision
(2) above.
Any
action brought under this section shall, upon motion of either party, be given
priority
for
expedited hearing.
SECTION
2. This act shall take effect upon passage.
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LC02451/SUB A
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