Bill Text: NY A09153 | 2023-2024 | General Assembly | Introduced


Bill Title: Requires contractors receiving public funds to pay amounts owed to small businesses and minority-owned business enterprises within seven days of receipt of payment from state agencies.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2024-02-08 - referred to governmental operations [A09153 Detail]

Download: New_York-2023-A09153-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          9153

                   IN ASSEMBLY

                                    February 8, 2024
                                       ___________

        Introduced  by  M.  of A. BICHOTTE HERMELYN -- read once and referred to
          the Committee on Governmental Operations

        AN ACT to amend the state finance law,  in  relation  to  providing  for
          prompt  payment  by contractors receiving public funds of amounts owed
          to small businesses and minority-owned business enterprises

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

     1    Section  1.  The  state finance law is amended by adding a new section
     2  149 to read as follows:
     3    § 149. Payments by contractors to small businesses and  minority-owned
     4  business enterprise subcontractors. 1. For the purposes of this section:
     5    (a) "Covered project" means a project which is paid for in whole or in
     6  part  out  of public funds as such term is defined in this section where
     7  the amount of all such public funds, when aggregated, is at least thirty
     8  percent of the total project costs and where such project costs are over
     9  five million dollars.
    10    (b) "Paid for in whole or in part out of public funds"  means  any  of
    11  the following:
    12    (i)  the payment of money, by a public entity, or a third party acting
    13  on behalf of and for the benefit of a public entity, directly to  or  on
    14  behalf  of the contractor, subcontractor, developer or owner that is not
    15  subject to repayment; or
    16    (ii) the savings achieved from fees, rents, interest rates,  or  other
    17  loan  costs,  or  insurance costs that are lower than market rate costs;
    18  savings from reduced taxes as a result of tax credits,  tax  abatements,
    19  tax exemptions or tax increment financing; savings from payments in lieu
    20  of  taxes; and any other savings from reduced, waived, or forgiven costs
    21  that would have otherwise been at a higher or market rate  but  for  the
    22  involvement of the public entity.
    23    (c)  "Contract"  means  an  enforceable  agreement  entered  into by a
    24  contractor and a subcontractor.
    25    (d) "Contractor" means any person, partnership, firm, corporation,  or
    26  association:

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14364-01-4

        A. 9153                             2

     1    (i)  selling  materials, equipment, or supplies or leasing property or
     2  equipment to a state agency;
     3    (ii) constructing, reconstructing, rehabilitating, or repairing build-
     4  ings or highways for, or on behalf of, a state agency; or
     5    (iii)  rendering  or  providing services pursuant to a contract with a
     6  state agency.
     7    (e) "Subcontractor" means a person engaged by a contractor or  another
     8  subcontractor to perform a portion of the contractor's obligations under
     9  a contract.
    10    (f)  "Small  business  concern"  or  "small business" means a business
    11  which is resident in this state, independently owned and  operated,  not
    12  dominant in its field and employs one hundred or less persons.
    13    (g)  "Minority-owned business enterprise" has the meaning set forth in
    14  subdivision seven of section three hundred ten of the executive law.
    15    2. Within seven calendar days of the receipt of any payment from state
    16  agencies, the contractor receiving payment for a covered  project  shall
    17  pay  each of their small business and minority-owned business enterprise
    18  contractors and/or subcontractors the proceeds from the payment  repres-
    19  enting  the  value of the work performed and/or furnished by the subcon-
    20  tractor and  reflecting  the  percentage  of  the  subcontractor's  work
    21  completed  or  the supplied in the requisition approved by the owner and
    22  based upon the actual value of the subcontract or purchase order less an
    23  amount necessary to satisfy any claims, liens or judgments  against  the
    24  subcontractor  or  which  have not been suitably discharged and less any
    25  retained amount as hereafter described. The contractor receiving payment
    26  for a covered project shall also generate invoices no later  than  seven
    27  days of date of service. Invoice service period and date of payment from
    28  receipt  of undisputed invoice should not exceed thirty days. Failure by
    29  the contractor to make any payment, including any remaining  amounts  of
    30  the  contract  balance  or generate invoices no later than seven days of
    31  date of service as hereinafter  described,  to  any  small  business  or
    32  minority-owned  business enterprise subcontractor or within seven calen-
    33  dar days of the receipt of any payment from state agencies shall  result
    34  in  the  commencement  and  accrual  of  interest on amounts due to such
    35  subcontractor or for the period beginning on the day immediately follow-
    36  ing the expiration of such seven calendar day period and ending  on  the
    37  date  on  which payment is made by the contractor to such subcontractor.
    38  Such interest shall be the sole responsibility of  the  contractor,  and
    39  shall  be  paid at the rate of interest in effect on the date payment is
    40  made by the contractor.
    41    § 2. This act shall take effect immediately.
feedback