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S04929 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          4929
 
                               2015-2016 Regular Sessions
 
                    IN SENATE
 
                                     April 23, 2015
                                       ___________
 
        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  determination
          of eligibility for payment of interest on amounts owed to contractors
 
          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-f of the state finance law, as
     2  amended by chapter 153 of the laws  of  1984,  is  amended  to  read  as
     3  follows:
     4    2.  The required payment date shall be thirty calendar days, excluding
     5  legal holidays, or in the case of final payments on highway construction
     6  contracts seventy-five calendar days, excluding  legal  holidays,  after
     7  receipt of an invoice for the amount of the contract payment due; except
     8  when:
     9    (a)  the  state comptroller in the course of his audit determines that
    10  there is reasonable cause to believe that payment may  not  properly  be
    11  due, in whole or in part;
    12    (b)  in  accordance with specific statutory or contractual provisions,
    13  payment must be preceded by an inspection  period  or  by  an  audit  to
    14  determine  the  resources  applied or used by a contractor in fulfilling
    15  the terms of the contract;
    16    (c) the necessary state government appropriation required to authorize
    17  payment has yet to be enacted;
    18    (d) [the cash balance of the fund or sub-fund from which  the  payment
    19  is to be made is insufficient to finance the payment;
    20    (e)] a proper invoice must be examined by the federal government prior
    21  to payment;
    22    [(f)]  (e)  the  goods  or  property  have  not  been delivered or the
    23  services have not been rendered by the contractor in compliance with the
    24  terms or conditions of the contract;
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07085-01-5

        S. 4929                             2
 
     1    [(g)] (f)  the required payment date is modified  in  accordance  with
     2  subdivision three of this section; or
     3    [(h)]  (g)  in  the  case  of  final  payments on highway construction
     4  contracts  the  commissioner  of  transportation  determines  that   the
     5  contractor  has  failed  to  properly submit the necessary documents and
     6  other submissions prescribed by the contract specifications and require-
     7  ments, by the provisions of subdivision eight of section thirty-eight of
     8  the highway law, and by all other applicable state and federal  laws  in
     9  order  to  enable  the department of transportation to process the final
    10  payment properly and expeditiously.
    11    Any time taken to satisfy or rectify any of the  types  of  conditions
    12  described  in  paragraphs  (a)  through  [(f)]  (e) or [(h)] (g) of this
    13  subdivision shall extend the required payment date by an equal period of
    14  time.
    15    § 2. This act  shall  take  effect  immediately  and  shall  apply  to
    16  invoices submitted on and after such date.
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