HB3675 Summary

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

• Reduces payment timeline for contractors to pay subcontractors and material suppliers from 10 business days (or 15 calendar days) to 7 business days after receiving payment, with electronic payment required or printed checks postmarked within 7 business days.

• Requires State officials to electronically make available voucher information (voucher number, date, and amount) when submitting payment vouchers for contractors or qualifying subcontractors, with instructions provided to known subcontractors on how to access this information.

• Establishes that contractors remain responsible to subcontractors even when assessed liquidated damages by the State, and makes contractors liable for reasonable attorneys' fees if an administrative law judge rules against them in payment disputes.

• Creates procedures for subcontractors to file claims for unpaid work with the State, including administrative hearings before an administrative law judge, with penalties including payment suspension for repeat violations within a 3-year period.

• Allows contractors and subcontractors to file claims for additional compensation with the Department of Transportation, which shall make equitable adjustments if the claim has merit.