HB 5260

Abstract

Amends the State Prompt Payment Act to provide that notification to a vendor that a bill or invoice contains a defect must be given not later than 45 days after the bill was first submitted or not later than 30 days after the receipt of the goods or services, whichever is later. Sets forth that if the State official or agency whose approval is required for any invoice fails to approve or disapprove that invoice within this notification period, the interest for late payment of that invoice shall be computed from the date 60 days after the receipt of that invoice or the date 60 days after the goods or services are received, whichever is later. Provides that if the State fails to pay any invoice within 30 days of approval or fails to approve or disapprove the invoice within the period at which interest may accrue, plus an additional 30 days, the contractor and subcontractors not paid may suspend performance under the construction contract or subcontracts without penalty, until the overdue payment or payments are made. Authorizes contractors, subcontractors, and material suppliers to recover the interest payable under this Act in any action pursuant to Section 23 of the Mechanics Lien Act or pursuant to the Public Construction Bond Act.