NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A796 REVISED 04/28/2015
SPONSOR: Braunstein (MS) TITLE OF BILL: An act to amend the state finance law and the general
municipal law, in relation to requiring full payment for delivered and
accepted materials pertaining to public work projects; and to amend the
general business law, in relation to prohibiting the retention of any
payment due and owing a material supplier for a construction project
PURPOSE OR GENERAL IDEA OF BILL:
This bill amends the state finance and general municipal laws, in
relation to requiring full payment for, delivered Materials pertaining
to public works projects; and to amend the general business law, in
relation to prohibiting the retention of any payment due and owing a
material supplier for a construction project.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1: Amends the state finance law to clarify that materialmen are
not subject to retainage.
Section 2: Amends the general municipal law to clarify that materialmen
are not subject to retainage.
Section 3: Amends the current law to clarify that an owner, contractor,
or subcontractor may not retain any portion of any payment due to a
material supplier, except as set forth in subsection one of the law.
JUSTIFICATION:
Currently, retainage is withheld on construction jobs to ensure that the
owner is satisfied with the finished product. Retainage is withheld by
the owner from the contractor, who, as a result of not receiving funds
from the owner, withholds payment from the subcontractors and material-
men. Once a material supplier has delivered its goods and has been
accepted by the contractor or subcontractor, the supplier has completed
its job and should not be held liable for subsequent work performance.
This legislation would remove materialmen from inclusion wider current
retainage laws.
PRIOR LEGISLATIVE HISTORY:
2013-2014: A.725/S.980 - ordered to third reading rules cal.433
2011-2012: A,8473-A/S .6158-A - referred to governmental operations
FISCAL IMPLICATIONS:
None to the State.
EFFECTIVE DATE:
This act shall take effect on the thirtieth day after it shall become
law and shall apply to materials deliver on or, after such date.
