This bill proposes updates to the statutes governing revitalization districts, specifically focusing on construction contracts. Under the current law, a revitalization district has the authority to enter into contracts and spend money for infrastructure purposes. The bill adds a requirement that any construction contracts entered into by a revitalization district must include specific provisions that protect contractors and subcontractors in the event of payment delays. These provisions allow contractors to suspend or terminate contracts if timely payments are not made, and they establish notice requirements for both contractors and subcontractors before such actions can be taken.

Additionally, the bill stipulates that subcontractors are also granted similar rights to suspend or terminate their contracts under certain conditions, such as when the district fails to approve payments or when the contractor does not pay the subcontractor despite the district's timely payment. The bill further mandates that reasonable attorney fees and costs be awarded to the successful party in any legal action related to these contract rights. Overall, the proposed changes aim to enhance the financial security of contractors and subcontractors working with revitalization districts by ensuring timely payments and clear communication regarding contract performance.

Statutes affected:
Introduced Version: 16-921.01
Senate Engrossed Version: 16-921.01
House Engrossed Version: 48-6808