Bill Text: NY S02010 | 2013-2014 | General Assembly | Introduced
Bill Title: Relates to interest and collection fees assessed on debts owed by the state to municipalities; requires payment for debt to be made on or before the thirtieth day following receipt of any billing invoice or notice sent by the municipality; the rate shall be calculated based on the underpayment rate minus four percentage points; provides exceptions where more information is required, funds are being provided by another entity and they have not been received by the state or the expenditure has not been approved by the state.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Introduced - Dead) 2014-01-08 - REFERRED TO FINANCE [S02010 Detail]
Download: New_York-2013-S02010-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
2010
2013-2014 Regular Sessions
I N S E N A T E
(PREFILED)
January 9, 2013
___________
Introduced by Sens. RANZENHOFER, ZELDIN -- read twice and ordered print-
ed, and when printed to be committed to the Committee on Finance
AN ACT to amend the state finance law, in relation to interest and
collection fees assessed on debts owed by the state to municipalities
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 16-a to read as follows:
3 S 16-A. INTEREST AND COLLECTION FEES ASSESSED ON DEBTS OWED BY THE
4 STATE TO MUNICIPALITIES. 1. AS USED IN THIS SECTION: (A) "STATE" SHALL
5 MEAN ANY STATE DEPARTMENT, BOARD, BUREAU, DIVISION, COMMISSION, COMMIT-
6 TEE, PUBLIC AUTHORITY, PUBLIC BENEFIT CORPORATION, COUNCIL, OFFICE, OR
7 OTHER GOVERNMENTAL ENTITY PERFORMING A GOVERNMENTAL OR PROPRIETARY FUNC-
8 TION FOR THE STATE; (B) "MUNICIPALITY" SHALL MEAN A COUNTY, TOWN,
9 VILLAGE OR SCHOOL DISTRICT AND ANY DEPARTMENT, BOARD, BUREAU, DIVISION,
10 COMMISSION, COMMITTEE, PUBLIC BENEFIT CORPORATION, COUNCIL, OFFICE OR
11 OTHER GOVERNMENTAL ENTITY PERFORMING A GOVERNMENTAL OR PROPRIETARY FUNC-
12 TION FOR SUCH COUNTY, TOWN, VILLAGE OR SCHOOL DISTRICT; (C) "DEBT" SHALL
13 MEAN ANY LIQUIDATED SUM DUE AND OWING ANY MUNICIPALITY BY THE STATE
14 WHICH HAS ACCRUED PURSUANT TO LAW OR THROUGH CONTRACT SUBROGATION, TORT
15 OR OTHER CAUSE OF ACTION, REGARDLESS OF WHETHER THERE IS AN OUTSTANDING
16 JUDGMENT FOR THAT SUM; (D) "LIQUIDATED" SHALL MEAN AN AMOUNT WHICH IS
17 FIXED OR CERTAIN OR CAPABLE OF BEING READILY CALCULATED, WHETHER OR NOT
18 THE UNDERLYING LIABILITY OR AMOUNT OF THE DEBT IS DISPUTED; AND (E)
19 "OUTSTANDING DEBT" SHALL MEAN THE AMOUNT SET FORTH IN THE BILLING
20 INVOICE OR NOTICE MAILED TO THE STATE, TOGETHER WITH LATE PAYMENT CHARG-
21 ES AND INTEREST, LESS ANY PAYMENTS MADE BY OR ON BEHALF OF THE DEBTOR.
22 2. FOR THE PURPOSES OF THIS SECTION, A MUNICIPALITY SHALL MAIL, OR
23 OTHERWISE NOTIFY AS MAY BE PERMITTED OR REQUIRED BY CONTRACT BETWEEN THE
24 MUNICIPALITY AND THE STATE, A DATED BILLING INVOICE OR NOTICE TO THE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05247-01-3
S. 2010 2
1 STATE ON OR ABOUT THE DAY IT IS DATED, AND RECEIPT BY THE DEBTOR OF A
2 BILLING INVOICE OR NOTICE IS DEEMED TO HAVE OCCURRED FIVE DAYS AFTER ITS
3 DATE.
4 3. THE STATE SHALL PAY SUCH DEBT ON OR BEFORE THE THIRTIETH DAY
5 FOLLOWING RECEIPT OF ANY BILLING INVOICE OR NOTICE SENT BY THE MUNICI-
6 PALITY THAT SUCH DEBT IS DUE AND OWING.
7 4. EXCEPT AS PROVIDED IN SUBDIVISION ELEVEN OF THIS SECTION, IF THE
8 STATE FAILS TO MAKE PAYMENT OF A DEBT TO A MUNICIPALITY WITHIN THE PERI-
9 OD SET FORTH IN SUBDIVISION THREE OF THIS SECTION IT SHALL PAY, IN ADDI-
10 TION TO THE AMOUNT OF DEBT, INTEREST ON THE OUTSTANDING BALANCE OF THE
11 DEBT, ACCRUING ON THE DATE ON WHICH THE RECEIPT OF THE FIRST BILLING
12 INVOICE OR FIRST NOTICE OCCURS, COMPUTED AT THE UNDERPAYMENT RATE WHICH
13 IS IN EFFECT ON THE DATE WHICH THE RECEIPT OF THE FIRST BILLING INVOICE
14 OR FIRST BILLING NOTICE OCCURS. FOR PURPOSES OF THIS SECTION, THE UNDER-
15 PAYMENT RATE SHALL BE THAT RATE SET BY THE COMMISSIONER OF TAXATION AND
16 FINANCE AND PUBLISHED IN THE STATE REGISTER PURSUANT TO SUBSECTION (E)
17 OF SECTION ONE THOUSAND NINETY-SIX OF THE TAX LAW MINUS FOUR PERCENTAGE
18 POINTS.
19 5. EXCEPT AS PROVIDED IN SUBDIVISION ELEVEN OF THIS SECTION, IN ADDI-
20 TION TO THE CHARGES REFERRED TO IN SUBDIVISION FOUR OF THIS SECTION, IF
21 THE STATE FAILS TO MAKE PAYMENT OF A DEBT SUBJECT TO THIS SECTION WITHIN
22 NINETY DAYS OF RECEIPT BY THE STATE OF THE FIRST BILLING INVOICE OR
23 NOTICE, THE STATE MAY BE ASSESSED AN ADDITIONAL COLLECTION FEE CHARGE TO
24 COVER THE COST OF PROCESSING, HANDLING AND COLLECTING SUCH DEBT, NOT TO
25 EXCEED TWENTY-TWO PERCENT OF THE OUTSTANDING DEBT, WHICH COLLECTION FEE
26 SHALL BE ADDED TO AND PAYABLE IN THE SAME MANNER AS THE OUTSTANDING
27 DEBT. THE ASSESSED COLLECTION FEE CHARGE MAY NOT EXCEED THE AGENCY'S
28 ESTIMATED COST OF PROCESSING, HANDLING AND COLLECTING SUCH DEBT.
29 6. (A) ANY INTEREST OR LATE PAYMENT CHARGES ASSESSED PURSUANT TO THIS
30 SECTION SHALL BE PAID UPON NOTICE AND DEMAND AND SHALL BE TREATED AND
31 COLLECTED IN THE SAME MANNER AS THE ORIGINAL DEBT WHICH IS DUE AND
32 OWING.
33 (B) IN ANY ACTION BROUGHT BY OR ON BEHALF OF A MUNICIPALITY TO RECOVER
34 AN OUTSTANDING DEBT, A DEMAND FOR COLLECTION FEE CHARGES MAY BE SET
35 FORTH IN THE STATEMENT OF DAMAGES SOUGHT.
36 7. THE DIRECTOR OF THE BUDGET SHALL PROMULGATE SUCH GUIDELINES AS THE
37 DIRECTOR DEEMS NECESSARY TO CARRY OUT THE PROVISIONS OF THIS SECTION.
38 8. THE PROVISIONS OF THIS SECTION SHALL NOT SUPERSEDE ANY PROVISION OF
39 LAW OR REGULATION OR CONTRACT WHICH PROVIDES FOR THE IMPOSITION OF
40 INTEREST OR LATE PAYMENT OR COLLECTION FEE CHARGES ON DEBTS NOT SATIS-
41 FIED IN A TIMELY MANNER.
42 9. ANY CONTRACTS ENTERED INTO OR ANY REGULATION PROMULGATED ON OR
43 AFTER THE EFFECTIVE DATE OF THIS SECTION WHICH PURPORTS TO WAIVE THE
44 IMPOSITION OF INTEREST OR LATE PAYMENT OR COLLECTION FEE CHARGES OR
45 IMPOSES INTEREST OR LATE PAYMENT CHARGES OR COLLECTION FEE CHARGES IN A
46 MANNER INCONSISTENT WITH THIS SECTION SHALL BE VOID.
47 10. EVERY MUNICIPALITY TO WHICH THIS SECTION IS APPLICABLE IS AUTHOR-
48 IZED TO ENTER INTO WRITTEN AGREEMENTS WITH THE STATE UNDER WHICH THE
49 STATE IS ALLOWED TO SATISFY LIABILITY FOR PAYMENT OF ANY DEBT, INCLUDING
50 ANY INTEREST IMPOSED BY THIS SECTION ON THAT PORTION OF SUCH DEBT AS TO
51 WHICH AN EXTENSION IS GRANTED, IN INSTALLMENT PAYMENTS IF THE MUNICI-
52 PALITY DETERMINES THAT SUCH AGREEMENT WILL FACILITATE COLLECTION OF SUCH
53 LIABILITY.
54 11. FOR PURPOSES OF THIS SECTION, THE TIME OF BILLING SHALL BE TOLLED:
55 (A) IF THE STATE SHALL NOTIFY THE MUNICIPALITY IN WRITING WITHIN THIRTY
56 DAYS OF RECEIPT OF THE BILLING THAT SUCH BILLING REQUIRES SUBMISSION OF
S. 2010 3
1 ADDITIONAL INFORMATION OR THE STATE OTHERWISE HAS OBJECTION TO THE FORM
2 OR CONTENT OF SUCH BILLING REQUIRING CLARIFICATION, UNTIL SUCH TIME AS
3 THE MUNICIPALITY SHALL RESPOND TO SUCH REQUEST FOR ADDITIONAL INFORMA-
4 TION OR MODIFICATION; (B) IF THE FUNDS FOR PAYMENT BY THE STATE ARE
5 BEING PROVIDED BY ANOTHER ENTITY, UNTIL SUCH FUNDS ARE RECEIVED BY THE
6 STATE FROM SUCH ENTITY; OR (C) IF THE EXPENDITURE FOR SUCH BILLING BY
7 THE STATE HAS NOT BEEN AUTHORIZED OR APPROVED BY THE STATE, UNTIL SUCH
8 EXPENDITURE HAS BEEN AUTHORIZED OR APPROVED.
9 S 2. This act shall take effect on the ninetieth day after it shall
10 have become a law.
