CT SB00683

Repeals and replaces Section 4a-71 of the general statutes, effective July 1, 2019, to establish penalties for late payments to state contractors.

Requires state departments and agencies to pay interest at the monthly effective yield rate of the Short Term Investment Fund when failing to make timely payments on contracts for public works, personal services, goods, services, equipment, and travel.

Mandates that all contracts entered into or renewed on or after July 1, 2019 with third-party payment administrators must include provisions requiring the third-party provider to pay a penalty of 0.5% of the late payment amount if payment is not made within 45 days of receiving a properly completed claim or goods/services.

Defines timely payment as a check or warrant mailed or delivered on the specified contract date or within 45 days of receiving a properly completed claim, whichever is later, or according to applicable law for withheld amounts.

Defines "state contractor" as any person, business entity, or nonprofit organization that enters into a state contract for public works, personal services, goods, services, equipment, and travel.