Bill Text: NY A08461 | 2011-2012 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relates to the allowable amount of a letter of credit used as guarantee of performance of a state procurement contract.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2012-06-11 - substituted by s5671a [A08461 Detail]

Download: New_York-2011-A08461-Amended.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        8461--A
                              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 -- recommitted to the Committee on  Govern-
         mental  Operations  in  accordance  with  Assembly  Rule  3, sec. 2 --
         committee discharged, bill amended, ordered reprinted as  amended  and
         recommitted to said committee
       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.  PROVIDED HOWEVER IF A  LETTER  OF
    7  CREDIT,  EITHER BY ITSELF OR IN CONJUNCTION WITH ANOTHER FORM OF GUARAN-
    8  TEE, IS USED FOR THIS PURPOSE, THE AMOUNT OF THE LETTER OF CREDIT  SHALL
    9  NOT  EXCEED  THREE  PERCENT  OF  THE TOTAL CONTRACT AWARD AMOUNT.  THESE
   10  RESTRICTIONS SHALL NOT APPLY TO ANY BOND REQUIREMENTS ISSUED PURSUANT TO
   11  THIS SECTION. AN AGENCY MAY REQUIRE OTHER GUARANTEES OF  PERFORMANCE  IN
   12  ADDITION TO A LETTER OF CREDIT AS PROVIDED IN THIS PARAGRAPH.
   13    S  2.  This act shall take effect immediately; provided, however, that
   14  the amendments to paragraph d of subdivision 10 of section  163  of  the
   15  state  finance  law made by section one of this act shall not affect the
   16  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.
                                                                  LBD13049-07-2