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Committee hears SB 5176 to tighten prompt‑pay rules for public works; CPARB recommendations guide bill

2130348 · January 17, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Senate Bill 5176 would implement Capital Projects Advisory Review Board (CPARB) prompt‑pay recommendations: 30‑day payments by owners, 10‑day subcontractor payment retention, 1% monthly interest on late payments, reduced withholding for disputes from 150% to 100%, and clearer contract payment schedules. Supporters say it helps small and diverse

The Senate State Government, Tribal Affairs and Elections Committee held a public hearing Jan. 17 on Senate Bill 5176, a proposal implementing prompt‑pay recommendations from the Capital Projects Advisory Review Board intended to make payment timelines on public works projects more predictable for contractors and subcontractors.

Sponsor Chair Valdez opened by describing the bill as the product of CPARB’s review following 2024 legislation (gross substitute Senate Bill 6040) and said the recommendations were aimed at helping small, women‑ and minority‑owned contractors who have long faced delayed payments. Danielle Creech, staff to the committee, told members the bill “requires the state or municipality to make payments on public works projects within 30 days of receiving a properly completed invoice” while retaining the existing requirement that subcontractors…

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