Bill Text: NY S06469 | 2011-2012 | General Assembly | Introduced

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Bill Title: Establishes that not-for-profit organizations shall be entitled to all prompt contracting interest due from a state agency at the time of the first payment made to any such organization.

Spectrum: Bipartisan Bill

Status: (Vetoed) 2012-12-17 - VETOED MEMO.188 [S06469 Detail]

Download: New_York-2011-S06469-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         6469
                                   I N  S E N A T E
                                   February 13, 2012
                                      ___________
       Introduced  by Sen. DeFRANCISCO -- (at request of the State Comptroller)
         -- read twice and ordered printed, and when printed to be committed to
         the Committee on Finance
       AN ACT to amend the state finance law, in relation  to  the  payment  of
         interest due to not-for-profit organizations
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Subdivision 2 of section 179-v of the state finance law, as
    2  added by chapter 166 of the laws of 1991, is amended to read as follows:
    3    2. Such organizations shall  receive  such  interest  payments  WITHIN
    4  THIRTY  DAYS  OF  THE  DATE  THE  PAYMENT OR PAYMENTS REQUIRED UNDER THE
    5  CONTRACT ARE MADE TO ANY SUCH ORGANIZATION; PROVIDED, HOWEVER, IF MONIES
    6  FROM ANY APPROPRIATION OR APPROPRIATIONS  AS  DESCRIBED  IN  SUBDIVISION
    7  THREE  OF  THIS SECTION ARE NOT AVAILABLE FOR THE PAYMENT OF SUCH INTER-
    8  EST, SUCH PAYMENT SHALL BE MADE IMMEDIATELY  AFTER  SUCH  MONIES  BECOME
    9  AVAILABLE.  SUCH  INTEREST PAYMENTS SHALL BE MADE at a rate equal to the
   10  rate set by the commissioner of taxation and finance for corporate taxes
   11  pursuant to paragraph one of subsection  (e)  of  section  one  thousand
   12  ninety-six  of  the  tax  law.  In  order  for a state agency to approve
   13  reimbursement of a not-for-profit organization at a rate other than  the
   14  interest  rate  stated  in  this section the not-for-profit organization
   15  shall submit documentation indicating the rate at which such funds  were
   16  borrowed,  the  lender of such funds and any other information requested
   17  by the state agency, attorney general  or  the  comptroller.  The  comp-
   18  troller  may disallow such portions of the interest that the comptroller
   19  deems unreasonable.
   20    S 2. This act shall take effect immediately.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD11124-03-1