Chapter 449
2006 -- H 7737 SUBSTITUTE A
Enacted 07/07/06
A N A C T
RELATING
TO PUBLIC PROPERTY AND WORKS -- ACTIONS AGAINST THE STATE ON HIGHWAY AND PUBLIC
WORKS CONTRACTS
Introduced
By: Representatives San Bento, Shanley, and Lewiss
Date
Introduced: February 28, 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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LC02450/SUB
A
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