State Affairs and Government

CHAPTER 42-11.1
Prompt Payment by Department of Administration

SECTION 42-11.1-2

§ 42-11.1-2. Definitions.

As used in this chapter, the following terms shall have the following meanings unless otherwise specified:

(1) "Contract" means an enforceable agreement entered into by a contractor and a state agency.

(2) "Contractor" means any person, partnership, firm, corporation, or association:

(i) Selling materials, equipment, or supplies or leasing property or equipment to a state agency:

(ii) Constructing, reconstructing, rehabilitating, or repairing buildings or highways for, or on behalf of, a state agency; or

(iii) Rendering or providing services pursuant to a contract with a state agency, including, without limitation, services which help people in need.

(3) "Designated payment office" means the office designated by the state agency to which a proper invoice is to be submitted by a contractor.

(4) "Payment date" means the date on which a payment is due according to a contract.

(5) "Proper invoice" means a written request for a contract payment that is submitted by a contractor setting forth the description, price, and quantity of goods, property or services delivered or rendered, in such form and supported by such other substantiating documentation as the state controller or individual state agency may reasonably require. In the case of state highway and bridge construction contracts, periodic payment estimates prepared by the department of transportation shall be considered proper invoices for purposes of this chapter and such estimates shall be prepared monthly or more often and shall include the total amount of work done from the date of the prior estimate.

(6) "Receipt of an invoice" means the date on which a proper invoice is actually received in the designated payment office or the date on which the state agency receives the purchased goods, property, or services covered by the proper invoice, whichever is later.

(7) "Required payment date" means the date by which a contract payment must be made in order for the state government not to become liable for interest payments, pursuant to subsections (b) and (g) of § 42-11.1-5.

(8) "Set-off " means the reduction by the controller of a payment due to a contractor by an amount equal to the amount of an unpaid legally enforceable debt owed by the contractor to the state or any amount which the state is entitled to withhold under the terms of the contract, or any amount owed by the contractor to the state by way of a statutory obligation or enforceable lien, of which the contractor had previous knowledge or notice.

(9) "State agency" means any department, board, bureau, commission, division, office, council, institution, authority or committee in the executive, legislative, or judicial branches of state government; including the University of Rhode Island and all other quasi-public bodies created by state law whose purpose and function are directly related to the health, safety, and welfare of the general populace of the state, including the Rhode Island lottery.

(10) "State funds" means funds held by the general treasurer in the general fund of the state.

(11) "Nonprofit provider" means any not for profit firm, partnership, or corporation which provides services to people in need pursuant to a contract with a state agency. A nonprofit provider is a contractor for purposes of this chapter. A nonprofit provider shall not be considered a public benefit corporation for the purposes of § 42-11.1-14.

History of Section.
(P.L. 1987, ch. 73, § 1; P.L. 1989, ch. 101, § 1; P.L. 1993, ch. 463, § 1.)