A3808 —

2018, c.127c.0127 (A3808 2R) §1CHAPTER -127 C.52:32-39.1  §2An –Act C.40A:11-19.1concerning §3prompt –payment C.18A:18A-10.1on §4certain -public Notecontracts  and P.L.supplementing various parts of the statutory law.

2018, CHAPTER 127, approved October 4, 2018 Assembly, No.

3808 (Second Reprint)     An Act concerning prompt payment on certain public contracts and 2[amending and]2 supplementing various parts of the statutory law.

      C.52:32-39.1  2[1. Payment Section of P.L.1987,interest c.184by (C.52:32-34)independent isState amendedauthority; to read as follows:

     definitions. 3.   a.  Interest shall be paid on the amount due to a business concern pursuant to a properly executed State invoice, when required, if the required payment is not made on or before the required payment date.        b.   [The]  Unless otherwise provided for in the contract, the required payment date shall be [60] 45 calendar days from the date specified in the contract or if no required payment date is specified in the contract, then the required payment date shall be [60] 45 calendar days from the receipt of a properly executed State invoice, or [60] 45 calendar days from the receipt of goods or services, whichever is later.  Interest shall not be paid unless goods and services are rendered.

          c.  1. Unless otherwise provided for in the contract, the using agency shall have [35] 25 calendar days from the receipt of a properly executed State invoice or [35] 25 calendar days from the receipt and acceptance of delivery of goods or services, whichever is later, to submit the request for payment to the division.  The division shall have [25] 1[13] 201 calendar days from the date the request for payment is submitted by the using agency to make the required payment to a business concern.  (cf:

P.L.1991,   c.64,An s.2)]2independent  State     authority 2[2.shall pay interest on the amount due a business concern pursuant to a properly executed invoice, when required, if the required payment is not made on or before the required payment date.

Section     5Unless otherwise provided for in the contract, the required payment date shall be 60 calendar days from the date specified in the contract or if no required payment is specified in the contract, then the required payment date shall be 60 calendar days from the receipt of P.L.1987,a c.184properly (C.52:32-36)executed invoice, or 60 calendar days from the receipt of goods or services, whichever is amendedlater.  toInterest readshall asnot follows:be paid unless goods and services are rendered.

     a.    The director shall adopt rules and regulations to effectuate the purposes of this act pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), except that any rules and regulations affecting payments under the "New Jersey Medical Assistance and Health Services Act," P.L.1968, c.413 (C.30:4D-1 et seq.) shall have the approval and consent of the Commissioner of Human Services.

     b.    The director shall by regulation provide that:

     (1)  Separate required payment dates shall exist for property or services provided in a series of partial executions or deliveries to the extent the contract provides for separate payment for each partial execution or delivery;

     (2)  The using agency shall notify the business concern within [30] 17 calendar days of any defect or impropriety in any invoice submitted or of any defect or impropriety in goods or services provided which would prevent the running of the time period specified in section 3 of [this act] P.L.1987, c.184 (C.52:32-34).       c.    The director may by regulation provide that the required payment date shall be within a specified number of days after the date of delivery in the case of contracts for the provision of perishable goods.  (cf:

P.L.1991, c.64, s.4)]2        2[3.] 1.2 (New section) An independent State authority shall pay interest on the amount due a business concern pursuant to a properly executed invoice, when required, if the required payment is not made on or before the required payment date.

     Unless otherwise provided for in the contract, the required payment date shall be 2[45] 602 calendar days from the date specified in the contract or if no required payment is specified in the contract, then the required payment date shall be 2[45] 602 calendar days from the receipt of a properly executed invoice, or 2[45] 602 calendar days from the receipt of goods or services, whichever is later.  Interest shall not be paid unless goods and services are rendered.

      C.40A:11-19.1  2[4.]Payment 2.2  (New section)  A contracting unit, as defined in section 2 of P.L.1971, c.198 (C.40A:11-2), shall pay interest onby thecontracting amountunit; due a business concern pursuant to a properly executed invoice, when required, if the required payment is not made on or before the required payment date.

    definitions. Unless otherwise provided for in the contract, the required payment date shall be 2[45] 602 calendar days from the date specified in the contract or if no required payment is specified in the contract, then the required payment date shall be 2[45] 602 calendar days from the receipt of a properly executed invoice, or 2[45] 602 calendar days from the receipt of goods or services, whichever is later.

     2.    A contracting unit, as defined in section 2 of P.L.1971, c.198 (C.40A:11-2), shall pay interest on the amount due a business concern pursuant to a properly executed invoice, when required, if the required payment is not made on or before the required payment date.

     Unless otherwise provided for in the contract, the required payment date shall be 60 calendar days from the date specified in the contract or if no required payment is specified in the contract, then the required payment date shall be 60 calendar days from the receipt of a properly executed invoice, or 60 calendar days from the receipt of goods or services, whichever is later.

     Interest on amounts due shall be paid to the business concern for the period beginning on the day after the required payment date and ending on the date on which the check for payment is drawn. drawn.      Interest shall be paid at the rate specified by the State Treasurer for State late payments to business concerns pursuant to section 4 of P.L.1987, c.184 (C.52:32-35).

     Interest shall be paid at the rate specified by the State Treasurer for State late payments to business concerns pursuant to section 4 of P.L.1987, c.184 (C.52:32-35).

      C.18A:18A-10.1  2[5.]Payment 3.2of (Newinterest section)by A board of education,education; as defined in N.J.S.18A:18A-2, shall pay interest on the amount due a business concern pursuant to a properly executed invoice, when required, if the required payment is not made on or before the required payment date.

    definitions. Unless otherwise provided for in the contract, the required payment date shall be 2[45] 902 calendar days from the date specified in the contract or if no required payment is specified in the contract, then the required payment date shall be 2[45] 902 calendar days from the receipt of a properly executed invoice, or 2[45] 902 calendar days from the receipt of goods or services, whichever is later.

     3.    A board of education, as defined in N.J.S.18A:18A-2, shall pay interest on the amount due a business concern pursuant to a properly executed invoice, when required, if the required payment is not made on or before the required payment date.

     Unless otherwise provided for in the contract, the required payment date shall be 90 calendar days from the date specified in the contract or if no required payment is specified in the contract, then the required payment date shall be 90 calendar days from the receipt of a properly executed invoice, or 90 calendar days from the receipt of goods or services, whichever is later.

       2[6.]4.    4.2     This act shall take effect 2[immediately] 120 days following enactment2.enactment.

                                            ProvidesApproved forOctober prompt4, payment2018. of public contracts for purchase of goods and services.