§ 12-4-701. Short Title
This part shall be known and may be cited as the “Prompt Pay Act of 1985.”
§ 12-4-702. Part Definitions
As used in this part, unless the context otherwise requires: “Acquire” means to derive a benefit from, whether by lease, grant, expenditure, or otherwise; “Agency” means any entity of the state government, as defined in § 4-5-102; “Business” means a business organization in any form, institution, association, profession, occupation or calling of any kind, whether […]
§ 12-4-703. When Payment Required
An agency which acquires property or services pursuant to a contract with a business shall pay for each complete delivered item of property or service in accordance with the contract between the business and agency or, if no date or other provision for payment is specified by contract, within forty-five (45) days after receipt of […]
§ 12-4-704. Interest
Interest shall accrue and be charged on payments overdue under § 12-4-703 at one and one-half percent (1½%) per month beginning on the day after payment is due. Interest which is unpaid at the end of each sixty-day period or at the end of any specified period provided by contract shall be added to the […]
§ 12-4-705. Appropriations to Pay Interest Prohibited
An agency may not seek additional appropriations to pay interest which accrues as a result of its failure to make timely payments required by § 12-4-703.
§ 12-4-706. Applicability of Part
This part is not applicable if an agency’s failure to pay timely interest required by § 12-4-704 is the result of a dispute between the agency and the business over the amount due or over compliance with the contract.
§ 12-4-707. Payments to Subcontractors — Interest
Upon payment by an agency, a business which has acquired under contract, property or services in connection with its contract with such agency from a subcontractor or supplier shall pay the subcontractor or supplier within thirty (30) days after receiving payment from the agency. Interest at the rate of one and one-half percent (1½%) per […]