S T A T E O F N E W Y O R K ________________________________________________________________________ 8461 2011-2012 Regular Sessions I N A S S E M B L Y June 17, 2011 ___________ Introduced by M. of A. GANTT -- read once and referred to the Committee on Governmental Operations AN ACT to amend the state finance law, in relation to the amount of a letter of credit used as guarantee of performance of a state procure- ment contract THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Paragraph d of subdivision 10 of section 163 of the state 2 finance law, as added by chapter 83 of the laws of 1995, is amended to 3 read as follows: 4 d. It shall be in the discretion of the commissioner or state agency 5 to require a bond or other guarantee of performance, and to approve the 6 amount, form and sufficiency thereof. IF A LETTER OF CREDIT, EITHER BY 7 ITSELF OR IN CONJUNCTION WITH ANOTHER FORM OF GUARANTEE, IS USED FOR 8 THIS PURPOSE, THE AMOUNT OF THE LETTER OF CREDIT SHALL NOT EXCEED THE 9 LEVEL OF ACTUAL RISK INVOLVED WITH THE CONTRACT AND IN NO CASE SHALL THE 10 AMOUNT OF THE LETTER OF CREDIT EXCEED FIVE PERCENT OF THE TOTAL CONTRACT 11 AWARD AMOUNT. 12 S 2. This act shall take effect immediately; provided, however, that 13 the amendments to paragraph d of subdivision 10 of section 163 of the 14 state finance law made by section one of this act shall not affect the 15 repeal of such section and shall be deemed repealed therewith. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD13049-01-1