BILL NUMBER:  S7686

 TITLE OF BILL :
An act to amend the state finance law, in relation to clarifying the
definition of the term liabilities with respect to the period for
which an appropriation remains in full force and effect


 PURPOSE :
The purpose of this legislation is to authorize the continued payment
for contracts that have already been entered into by the state.

 SUMMARY OF PROVISIONS :
This legislation amends paragraph (c) of subdivision 3 of section 40
of the state finance law by clarifying the definition of the term
liability.

 JUSTIFICATION :
Section 40 of the State Finance Law outlines the timeframe for which
appropriations included in the State budget remain in full force and
effect and the date by which such appropriations shall lapse.
Pursuant to subdivision 3 of such section, all appropriations made for
any purpose currently cease to have force and effect - except for any
liabilities already incurred at the close of the fiscal year.  In the
case of existing liabilities incurred pursuant to a capital projects
appropriation, paragraph (c) of subdivision 3 provides that the final
              

lapse date for such appropriations is the 15th of September following
the close of the fiscal year. Thus, liabilities for capital projects
made pursuant to existing budget appropriations may continue to be
paid out until September of the following fiscal year. However,
current law provides no clear definition of the term "liabilities" as
utilized in subdivision 3 of Section 40 of the State Finance Law. As a
result of this ambiguity, it is unclear exactly what types of
obligations may be construed as a liability against an existing
capital projects budget appropriation. The provisions of this bill
would clarify that liabilities shall include payments for work
performed or materials furnished both during the fiscal year and in
the timeframe prior to the official lapse of the capital projects
appropriations under which such liabilities are made.

Since April 1, 2010 contractors working on projects throughout the
state of New York have not been getting paid for their work. These
contractors are working with signed agreements between themselves and
the state of New York with the understanding that they would be paid
for the work they are doing. The purpose of this legislation is to
ensure that those payments that have already been agreed to - and
planned for - continue regardless of a late budget. Those workers who
are out on our roads and bridges working to make them safer deserve to
be paid for the work they are doing. Without moving these projects
forward, New York's unemployment rate will approach double digits, and
its transportation infrastructure will continue to lie in disrepair.
For example, funding for Federal Stimulus projects has helped slow
construction job losses from 33,400 in February to 25,400 in March -
not authorizing payments to our contractors threatens to reverse these
numbers as contractors cannot continue to work 'at risk' and may begin
to lay-off workers. The prime duty of government is to protect the
people's interests - by withholding payments to workers who are
keeping our roads and bridges safe for travel we are not accomplishing
that goal. It is imperative that this legislation be adopted in order
to ensure that payment for critical infrastructure work will continue
this year and in future years - even if a budget is not adopted by the
April 1st deadline.

 LEGISLATIVE HISTORY :
New Bill.

 FISCAL IMPLICATIONS :
The provisions of this bill would result in no additional costs to the
State.

 EFFECTIVE DATE :
Immediate and shall be deemed to have been in full force and effect on
and after March 31, 2010.