VA SB550 | 2022 | Regular Session
Status
Completed Legislative Action
Spectrum: Partisan Bill (Democrat 1-0)
Status: Passed on April 27 2022 - 100% progression
Action: 2022-04-27 - Governor: Acts of Assembly Chapter text (CHAP0727)
Text: Latest bill text (Chaptered) [HTML]
Spectrum: Partisan Bill (Democrat 1-0)
Status: Passed on April 27 2022 - 100% progression
Action: 2022-04-27 - Governor: Acts of Assembly Chapter text (CHAP0727)
Text: Latest bill text (Chaptered) [HTML]
Summary
Contracts; payment clauses to be included in certain contracts; right to payment of subcontractors. Requires construction contracts awarded by state or local government agencies as well as certain private construction contracts in which there is at least one general contractor and one subcontractor to include a payment clause that obligates the contractors to be liable for the entire amount owed to any subcontractor with which it contracts. The bill provides that a contractor shall not be liable for amounts otherwise reducible due to the subcontractor's noncompliance with the terms of the contract; however, the contractor must notify the subcontractor in writing of the contractor's intent to withhold all or a part of the subcontractor's payment with the reason for such nonpayment. Payment by the party contracting with the contractor shall not be a condition precedent to payment to any lower-tier subcontractor. The bill also requires a payment clause to be included in any construction contract between an owner and a general contractor that requires (i) the owner to pay the general contractor within 60 days of receipt of an invoice following satisfactory completion of the contracted-for work, and (ii) a higher-tier contractor to pay a lower-tier subcontractor within the earlier of 60 days of satisfactory completion of the work for which the subcontractor has invoiced or seven days after receipt of amounts paid by the owner to the general contractor for work performed. Lastly, the bill provides that the Department of General Services shall convene the Public Body Procurement Workgroup to review whether the issue of nonpayment between general contractors and subcontractors necessitates legislative corrective action and report its findings and legislative recommendations to the General Assembly on or before December 1, 2022. The bill has a delayed effective date of January 1, 2023, and shall apply to construction contracts executed on or after January 1, 2023. Contracts; payment clauses to be included in certain contracts; right to payment of subcontractors. Requires construction contracts awarded by state or local government agencies as well as certain private construction contracts in which there is at least one general contractor and one subcontractor to include a payment clause that obligates the contractors to be liable for the entire amount owed to any subcontractor with which it contracts. The bill provides that a contractor shall not be liable for amounts otherwise reducible due to the subcontractor's noncompliance with the terms of the contract; however, the contractor must notify the subcontractor in writing of the contractor's intent to withhold all or a part of the subcontractor's payment with the reason for such nonpayment. Payment by the party contracting with the contractor shall not be a condition precedent to payment to any lower-tier subcontractor. The bill also requires a payment clause to be included in any construction contract between an owner and a general contractor that requires (i) the owner to pay the general contractor within 60 days of receipt of an invoice following satisfactory completion of the contracted-for work, and (ii) a higher-tier contractor to pay a lower-tier subcontractor within the earlier of 60 days of satisfactory completion of the work for which the subcontractor has invoiced or seven days after receipt of amounts paid by the owner to the general contractor for work performed. Lastly, the bill provides that the Department of General Services shall convene the Public Body Procurement Workgroup to review whether the issue of nonpayment between general contractors and subcontractors necessitates legislative corrective action and report its findings and legislative recommendations to the General Assembly on or before December 1, 2022. The bill has a delayed effective date of January 1, 2023, and shall apply to construction contracts executed on or after January 1, 2023.
Title
Contracts; payment clauses, right to payment of subcontractors.
Sponsors
| Sen. John Bell [D] |
Roll Calls
2022-04-27 - House - House: VOTE: Adoption (95-Y 4-N) (Y: 95 N: 4 NV: 0 Abs: 1) [PASS]
2022-04-27 - Senate - Senate: Senate concurred in Governor's recommendation (40-Y 0-N) (Y: 40 N: 0 NV: 0 Abs: 0) [PASS]
2022-03-07 - Senate - Senate: House substitute agreed to by Senate (29-Y 10-N) (Y: 29 N: 10 NV: 0 Abs: 1) [PASS]
2022-03-03 - House - House: VOTE: Passage (91-Y 9-N) (Y: 91 N: 9 NV: 0 Abs: 0) [PASS]
2022-02-28 - House - House: Reported from Appropriations with amendment(s) (22-Y 0-N) (Y: 22 N: 0 NV: 0 Abs: 0) [PASS]
2022-02-24 - House - House: Reported from General Laws with substitute (17-Y 5-N) (Y: 17 N: 5 NV: 0 Abs: 0) [PASS]
2022-02-14 - Senate - Senate: Passed Senate (25-Y 15-N) (Y: 25 N: 15 NV: 0 Abs: 0) [PASS]
2022-02-14 - Senate - Senate: Reconsideration of passage agreed to by Senate (40-Y 0-N) (Y: 40 N: 0 NV: 0 Abs: 0) [PASS]
2022-02-14 - Senate - Senate: Read third time and passed Senate (23-Y 17-N) (Y: 23 N: 17 NV: 0 Abs: 0) [PASS]
2022-02-10 - Senate - Senate: Constitutional reading dispensed (40-Y 0-N) (Y: 40 N: 0 NV: 0 Abs: 0) [PASS]
2022-02-09 - Senate - Senate: Reported from Finance and Appropriations (11-Y 4-N) (Y: 11 N: 4 NV: 0 Abs: 0) [PASS]
2022-02-02 - Senate - Senate: Reported from General Laws and Technology with substitute (10-Y 4-N 1-A) (Y: 10 N: 4 NV: 1 Abs: 0) [PASS]
2022-04-27 - Senate - Senate: Senate concurred in Governor's recommendation (40-Y 0-N) (Y: 40 N: 0 NV: 0 Abs: 0) [PASS]
2022-03-07 - Senate - Senate: House substitute agreed to by Senate (29-Y 10-N) (Y: 29 N: 10 NV: 0 Abs: 1) [PASS]
2022-03-03 - House - House: VOTE: Passage (91-Y 9-N) (Y: 91 N: 9 NV: 0 Abs: 0) [PASS]
2022-02-28 - House - House: Reported from Appropriations with amendment(s) (22-Y 0-N) (Y: 22 N: 0 NV: 0 Abs: 0) [PASS]
2022-02-24 - House - House: Reported from General Laws with substitute (17-Y 5-N) (Y: 17 N: 5 NV: 0 Abs: 0) [PASS]
2022-02-14 - Senate - Senate: Passed Senate (25-Y 15-N) (Y: 25 N: 15 NV: 0 Abs: 0) [PASS]
2022-02-14 - Senate - Senate: Reconsideration of passage agreed to by Senate (40-Y 0-N) (Y: 40 N: 0 NV: 0 Abs: 0) [PASS]
2022-02-14 - Senate - Senate: Read third time and passed Senate (23-Y 17-N) (Y: 23 N: 17 NV: 0 Abs: 0) [PASS]
2022-02-10 - Senate - Senate: Constitutional reading dispensed (40-Y 0-N) (Y: 40 N: 0 NV: 0 Abs: 0) [PASS]
2022-02-09 - Senate - Senate: Reported from Finance and Appropriations (11-Y 4-N) (Y: 11 N: 4 NV: 0 Abs: 0) [PASS]
2022-02-02 - Senate - Senate: Reported from General Laws and Technology with substitute (10-Y 4-N 1-A) (Y: 10 N: 4 NV: 1 Abs: 0) [PASS]
History
| Date | Chamber | Action |
|---|---|---|
| 2022-04-27 | Governor: Acts of Assembly Chapter text (CHAP0727) | |
| 2022-04-27 | House | Enacted, Chapter 727 (effective 1/1/23) |
| 2022-04-27 | House | Signed by Speaker as reenrolled |
| 2022-04-27 | Senate | Signed by President as reenrolled |
| 2022-04-27 | Senate | Reenrolled bill text (SB550ER2) |
| 2022-04-27 | Senate | Reenrolled |
| 2022-04-27 | Governor: Governor's recommendation adopted | |
| 2022-04-27 | House | VOTE: Adoption (95-Y 4-N) |
| 2022-04-27 | House | House concurred in Governor's recommendation (95-Y 4-N) |
| 2022-04-27 | Senate | Senate concurred in Governor's recommendation (40-Y 0-N) |
| 2022-04-11 | Senate | Governor's substitute printed 22108193D-S2 |
| 2022-04-11 | Senate | Governor's recommendation received by Senate |
| 2022-03-22 | Governor: Governor's Action Deadline 11:59 p.m., April 11, 2022 | |
| 2022-03-22 | Senate | Enrolled Bill Communicated to Governor on March 22, 2022 |
| 2022-03-10 | House | Signed by Speaker |
| 2022-03-10 | Senate | Signed by President |
| 2022-03-10 | Senate | Bill text as passed Senate and House (SB550ER) |
| 2022-03-10 | Senate | Enrolled |
| 2022-03-07 | Senate | Title replaced 22107429D-H2 |
| 2022-03-07 | Senate | House substitute agreed to by Senate (29-Y 10-N) |
| 2022-03-03 | House | VOTE: Passage (91-Y 9-N) |
| 2022-03-03 | House | Passed House with substitute (91-Y 9-N) |
| 2022-03-03 | House | Engrossed by House - floor substitute SB550H2 |
| 2022-03-03 | House | Substitute by Delegate Wiley agreed to 22107429D-H2 |
| 2022-03-03 | House | Appropriations committee amendments out of order due to rejection of General Laws |
| 2022-03-03 | House | Committee on General Laws substitute rejected 22107080D-H1 |
| 2022-03-03 | House | Read third time |
| 2022-03-03 | House | Floor substitute printed 22107429D-H2 (Wiley) |
| 2022-03-02 | House | Passed by for the day |
| 2022-03-01 | House | Read second time |
| 2022-02-28 | House | Reported from Appropriations with amendment(s) (22-Y 0-N) |
| 2022-02-24 | House | Committee substitute printed 22107080D-H1 |
| 2022-02-24 | House | Referred to Committee on Appropriations |
| 2022-02-24 | House | Reported from General Laws with substitute (17-Y 5-N) |
| 2022-02-21 | House | Referred to Committee on General Laws |
| 2022-02-21 | House | Read first time |
| 2022-02-21 | House | Placed on Calendar |
| 2022-02-14 | Senate | Passed Senate (25-Y 15-N) |
| 2022-02-14 | Senate | Reconsideration of passage agreed to by Senate (40-Y 0-N) |
| 2022-02-14 | Senate | Read third time and passed Senate (23-Y 17-N) |
| 2022-02-11 | Senate | Engrossed by Senate - committee substitute SB550S1 |
| 2022-02-11 | Senate | Committee substitute agreed to 22104655D-S1 |
| 2022-02-11 | Senate | Reading of substitute waived |
| 2022-02-11 | Senate | Read second time |
| 2022-02-10 | Senate | Constitutional reading dispensed (40-Y 0-N) |
| 2022-02-09 | Senate | Reported from Finance and Appropriations (11-Y 4-N) |
| 2022-02-02 | Senate | Rereferred to Finance and Appropriations |
| 2022-02-02 | Senate | Committee substitute printed 22104655D-S1 |
| 2022-02-02 | Senate | Reported from General Laws and Technology with substitute (10-Y 4-N 1-A) |
| 2022-01-12 | Senate | Referred to Committee on General Laws and Technology |
| 2022-01-12 | Senate | Prefiled and ordered printed; offered 01/12/22 22102233D |
Subjects
Administration of Government
Contractors and Subcontractors
Contracts
Study Commissions Committees and Reports
Contractors and Subcontractors
Contracts
Study Commissions Committees and Reports
