5-26-6. Time for payments to subcontractors and suppliers--Interest on overdue amounts--When payments due.
Upon payment by an agency, a business that has acquired under contract, property or services in connection with the business's contract with the agency from a subcontractor or supplier, shall pay the subcontractor or supplier within thirty days after receiving payment from the agency. Interest at the Category B rate of interest as established in §54-3-16 shall accrue and is due any subcontractor or supplier who is not paid within thirty days after the business receives payment from the agency, unless otherwise provided by contract between the business and the subcontractor or supplier. Interest begins to accrue on the thirty-first day at the rate specified in this section. Payment is due when the subcontractor or material supplier has satisfied the terms of the contract or material delivery agreement.
Source: SL 1984, ch 41, §6; SL 1988, ch 59, §5; SL 2018, ch 47, §3.
Structure South Dakota Codified Laws
Title 5 - Public Property, Purchases and Contracts
Chapter 26 - Prompt Payment Act
Section 5-26-2 - Deadlines for payments.
Section 5-26-3 - Interest on overdue payments--Rate.
Section 5-26-3.1 - Payment of less than five dollars in interest prohibited.
Section 5-26-4 - Additional appropriations for interest prohibited.
Section 5-26-5 - Disputed payments exempt--Notice of dispute required.
Section 5-26-7 - Citation of chapter.
Section 5-26-8 - Exemptions of transactions between government agencies.