Bill Text: NY A01400 | 2023-2024 | General Assembly | Introduced

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Bill Title: Relates to prompt payments to counties by the state; provides if prompt payment is not provided an interest payment shall be made to the contractor or county government.

Spectrum: Partisan Bill (Republican 11-0)

Status: (Introduced) 2024-01-03 - referred to governmental operations [A01400 Detail]

Download: New_York-2023-A01400-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          1400

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    January 17, 2023
                                       ___________

        Introduced by M. of A. BLANKENBUSH, ANGELINO, BRABENEC, BYRNES, DeSTEFA-
          NO,  DURSO, HAWLEY, McDONOUGH, MILLER, SMULLEN, TAGUE -- read once and
          referred to the Committee on Governmental Operations

        AN ACT to amend the state finance law, in relation to prompt payment  to
          counties from the state

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Subdivision 1 of section 179-f of the state finance law, as
     2  amended by chapter 332 of the laws  of  1989,  is  amended  to  read  as
     3  follows:
     4    1.  Each  state  agency which is required to make a payment from state
     5  funds pursuant to a contract and  which  does  not  make  such  contract
     6  payment  by  the required payment date shall make an interest payment to
     7  the contractor or county government in accordance with this article,  or
     8  other  provisions of law, on the amount of the contract payment which is
     9  due, unless failure to make such contract payment is  the  result  of  a
    10  lien,  attachment,  or  other  legal  process against the money due said
    11  contractor or county government, or unless the amount  of  the  interest
    12  payment  as  computed  in  accordance with the provisions of section one
    13  hundred seventy-nine-g of this article is less than ten dollars.  A  pro
    14  rata  share  of such interest shall be paid by the contractor or subcon-
    15  tractor, as the case may be, to  subcontractors  and  materialmen  in  a
    16  proportion  equal  to  the  percentage  of  their  pro rata share of the
    17  contract payment. Such pro rata share of interest shall be due  to  such
    18  subcontractors  and  materialmen  only  for those payments which are not
    19  paid to such subcontractors and materialmen prior to the date upon which
    20  interest begins to accrue between the state agency and  the  contractor.
    21  Such  pro  rata  share  of  interest  shall be computed daily until such
    22  payments are made to the subcontractors and materialmen.
    23    § 2. This act shall take effect on the ninetieth day  after  it  shall
    24  have become a law.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05166-01-3