HB0173 Summary

• Small business subcontractors listed in the Chief Procurement Office's Small Business Vendors Directory and the Department of Transportation's Disadvantaged Business Enterprise Directory may enter into direct payment agreements with the Department of Transportation on construction projects.

• State agencies must electronically provide voucher information (number, date, and amount) to subcontractors and material suppliers when submitting payment vouchers to the Comptroller.

• Contractors remain responsible to pay subcontractors even when the State assesses liquidated damages against the contractor, and contractors must pay reasonable attorneys' fees if an administrative law judge rules in favor of a subcontractor in a payment dispute.

• Contractors failing to pay subcontractors within 15 calendar days of receiving State payment shall pay 2% monthly interest; contractors found by an administrative law judge to have withheld payment without reasonable cause are barred from State contracts for one year (or six months on a second violation within three years).

• Contractors and subcontractors may file claims with the Department of Transportation for additional payment if the Department does not agree compensation is due; the Department will make equitable adjustments if the claim is found to have merit.