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S05671 Summary:

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S05671 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         5671--A
 
                               2011-2012 Regular Sessions
 
                    IN SENATE
 
                                      June 9, 2011
                                       ___________
 
        Introduced  by  Sen.  DeFRANCISCO -- read twice and ordered printed, and
          when printed to be committed to the Committee on Finance --  recommit-
          ted to the Committee on Finance in accordance with Senate Rule 6, sec.
          8  -- committee discharged, bill amended, ordered reprinted as amended
          and recommitted to said committee
 

        AN ACT to amend the state finance law, in relation to the  amount  of  a
          letter  of credit used as guarantee of performance of a state procure-
          ment contract
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Paragraph d of subdivision 10 of section 163 of the state
     2  finance law, as added by chapter 83 of the laws of 1995, is  amended  to
     3  read as follows:
     4    d.  It  shall be in the discretion of the commissioner or state agency
     5  to require a bond or other guarantee of performance, and to approve  the
     6  amount,  form  and sufficiency thereof.  Provided however if a letter of
     7  credit, either by itself or in conjunction with another form of  guaran-
     8  tee,  is used for this purpose, the amount of the letter of credit shall

     9  not exceed three percent of the total  contract  award  amount.    These
    10  restrictions shall not apply to any bond requirements issued pursuant to
    11  this  section.  An agency may require other guarantees of performance in
    12  addition to a letter of credit as provided in this paragraph.
    13    § 2. This act shall take effect immediately; provided,  however,  that
    14  the  amendments  to  paragraph d of subdivision 10 of section 163 of the
    15  state finance law made by section one of this act shall not  affect  the
    16  repeal of such section and shall be deemed repealed therewith.
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13049-06-2