HB3203 Summary

• Capital Development Board and Department of Transportation must each establish a pilot program for select construction contracts requiring state agencies to pay subcontractors directly when work is accepted and performed in accordance with subcontract terms.

• Pilot program must be implemented by January 1, 2023, with contract provisions allowing direct state payment to subcontractors based on proper bills or invoices submitted by contractors.

• Exempts payments made under the direct payment pilot program from State Prompt Payment Act requirements that normally apply to subcontractor and material supplier payments through contractors.

• Department of Transportation must publish a searchable database by July 2021 allowing queries of active construction contracts by subcontractor name or pay item to identify whether work is assigned to prime contractor or subcontractor.