CHAPTER 687
(House Bill 1112)

AN ACT concerning

State Construction Contracts - Prompt Payment of Subcontractors

FOR the purpose of requiring that a contractor pay an undisputed amount to which a
subcontractor is entitled under a State procurement contract for construction
within a specified time period; declaring the policy of the State as to the prompt
payment of subcontractors involved in State construction contracts; requiring a
contractor to take certain actions when payment is withheld; authorizing a
subcontractor to take certain actions when payment is not received; requiring
that a representative of the unit contracting for the construction services,
designated by the procurement officer, take certain actions concerning the
failure of a contractor to pay subcontractors undisputed amounts; providing for
a withholding of progress payments, a hold on payment processing, and
suspension of work under certain circumstances due to the failure to pay
undisputed amounts; authorizing the imposition of a penalty against a
contractor under specified circumstances; granting a contractor and
subcontractor the right to appeal certain decisions of the representative to the
procurement officer; providing the effect of certain actions, failure to act, and
decisions; providing that decisions under this Act are not subject to judicial
review or certain procedures under the State procurement law; providing for the
application of this Act; defining a certain term; and generally relating to the
prompt payment of undisputed amounts owed by contractors to subcontractors
under State procurement contracts for construction.

BY adding to

Article - State Finance and Procurement

Section 15-226 to be under the new part "Part IV. Construction Contracts -
Prompt Payment of Subcontractors"

Annotated Code of Maryland

(1995 Replacement Volume and 1998 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows: