STATE GOVERNMENT-TECH
What changed between versions
Updated the governing statute from the State Comptroller Act to the State Prompt Payment Act to align with current legislative structure.
Mandated that contractors must pay all lower-tiered subcontractors and material suppliers electronically within 10 business days or 15 calendar days of receiving payment.
Required contractors to issue a written notice detailing the reason for refusing prompt payment within 5 calendar days of receiving funds.
Created a new administrative hearing process allowing subcontractors to file a written request to resolve disputes when a contractor fails to pay on time.
Clarified that interest penalties apply to payments made by subcontractors to their own downstream suppliers, ensuring the prompt payment chain applies throughout the entire project.