§ 39:1695 — Late payment to business; penalty paid by state agency

§1695. Late payment to business; penalty paid by state agency
A. If a state agency without reasonable cause fails to make any payment due within
ninety days of the due date prescribed by contract, to a business awarded a contract with the
state agency to supply equipment, supplies, materials, or textbooks, or to provide services,
the state agency shall pay, in addition to the payment, interest on the amount due at the rate
established pursuant to the judicial interest rate referenced in R.S. 13:4202(B) per year, from
the ninety-first day after the due date prescribed by the contract. In applying this Section to
a claim related in any way to an entitlement program, payment for claims shall be due ninety
days after a claim is received by the state.
B. If it is determined by the state agency that additional evidence of the validity of
the claim for payment is required, such evidence shall be requested within ten working days
from the date the bill is received by the state agency. In instances where additional evidence
is required, the bill shall be reviewed and payment or rejection made within thirty days from
receipt of the evidence requested in the office of the paying agency.
C. Any penalty required to be paid by a state agency pursuant to this Section shall
be disbursed upon warrants drawn by the state agency upon that agency's operating expenses
budget.

Legislative History

Added by Acts 1982, No. 709, §1; Acts 1988, 1st Ex. Sess., No. 4, §2, eff. Mar. 28, 1988; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.