LA HB490

Public entities receiving funding from other government sources (state, federal, or other public entities) for public works contracts are exempt from the 45-day payment deadline and associated penalties until they actually receive the funds from the paying entity

Once funds are received from the funding source, the contracting public entity must pay the contractor within 5 days or face statutory interest penalties of 0.5% daily, capped at 15%

Contractors must provide written notice to public entities of when the 45-day payment period begins and expires, plus additional written reminders at 20 and 10 days before expiration; failure to comply extends interest imposition by an additional 45 days

All payment time limits and requirements are interrupted during gubernatorially or presidentially declared emergencies (including natural disasters or public health emergencies) and restart fresh when the declaration expires

Payment deadlines may now be extended by written agreement between the public entity and contractor, though the underlying payment provisions cannot be waived by contract