House Bill No. by Representative Kerner amends existing laws regarding public contracts in Louisiana, specifically focusing on payment requirements for public entities. The bill introduces provisions that exempt public entities from certain payment obligations if they are receiving funding from another public entity or the federal government. In such cases, the public entity is not liable for penalties related to late payments until it receives the necessary funds to fulfill its payment obligations. Additionally, the bill establishes notification requirements for contractors regarding payment timelines and allows for a five-day payment window upon receipt of funds.

Furthermore, the bill provides for the interruption of payment-related time limits during declared emergencies, such as natural disasters or public health crises, resetting the timeline once the emergency declaration expires. It retains the existing law that prohibits waiving these provisions by contract but allows for extensions of the time limits through written agreements between the public entity and the contractor. The bill aims to clarify and streamline payment processes for public contracts while ensuring that contractors are informed of their rights and obligations.

Statutes affected:
HB490 Original: 38:2191(B)