2015 -- H 6088

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LC002444

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO PUBLIC PROPERTY AND WORKS -- STATE PURCHASES

     Introduced By: Representatives McKiernan, Craven, Blazejewski, Williams, and

     Date Introduced: April 16, 2015

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 37 of the General Laws entitled "PUBLIC PROPERTY AND

WORKS" is hereby amended by adding thereto the following chapter:

CHAPTER 2.6

PROMPT PAYMENT ACT

     37-2.6-1. Prompt payment to private enterprises. – (a) As used in this chapter "private

enterprise" means an individual or a business which provides goods or services to the state of

Rhode Island and which is not a governmental entity.

     (b) All private enterprises that supply goods or services to the state of Rhode Island shall

submit a timely written invoice seeking payment.

     (c) The state shall promptly pay in full the provided invoice within sixty (60) days of its

receipt unless the state contests all or part of the invoice. In that case, the state shall pay, within

sixty (60) days, the uncontested portion of the invoice. The contested portion of the invoice can

be resolved via arbitration, litigation or other procedure. Such arbitration, litigation, or other

procedure shall be initiated within ninety (90) days of notice and description of the contested

portion of the invoice to the private enterprise.

     SECTION 2. This act shall take effect upon passage.

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LC002444

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC PROPERTY AND WORKS -- STATE PURCHASES

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     This act would require the state to pay its vendors in full within sixty (60) days of receipt

of its invoice and to timely contest that portion of the invoice which it questions.

     This act would take effect upon passage.

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LC002444

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