senate Bill S5671A

Vetoed

Relates to the allowable amount of a letter of credit used as guarantee of performance of a state procurement contract

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Vetoed by Governor
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actions

  • 09 / Jun / 2011
    • REFERRED TO FINANCE
  • 16 / Jun / 2011
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 16 / Jun / 2011
    • ORDERED TO THIRD READING CAL.1330
  • 16 / Jun / 2011
    • PASSED SENATE
  • 16 / Jun / 2011
    • DELIVERED TO ASSEMBLY
  • 16 / Jun / 2011
    • REFERRED TO WAYS AND MEANS
  • 04 / Jan / 2012
    • DIED IN ASSEMBLY
  • 04 / Jan / 2012
    • RETURNED TO SENATE
  • 04 / Jan / 2012
    • REFERRED TO FINANCE
  • 24 / Feb / 2012
    • AMEND AND RECOMMIT TO FINANCE
  • 24 / Feb / 2012
    • PRINT NUMBER 5671A
  • 08 / May / 2012
    • 1ST REPORT CAL.734
  • 09 / May / 2012
    • 2ND REPORT CAL.
  • 14 / May / 2012
    • ADVANCED TO THIRD READING
  • 15 / May / 2012
    • PASSED SENATE
  • 15 / May / 2012
    • DELIVERED TO ASSEMBLY
  • 15 / May / 2012
    • REFERRED TO GOVERNMENTAL OPERATIONS
  • 11 / Jun / 2012
    • SUBSTITUTED FOR A8461A
  • 11 / Jun / 2012
    • ORDERED TO THIRD READING RULES CAL.99
  • 11 / Jun / 2012
    • PASSED ASSEMBLY
  • 11 / Jun / 2012
    • RETURNED TO SENATE
  • 05 / Dec / 2012
    • DELIVERED TO GOVERNOR
  • 17 / Dec / 2012
    • VETOED MEMO.182

Summary

Relates to the allowable amount of a letter of credit used as guarantee of performance of a state procurement contract.

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Bill Details

See Assembly Version of this Bill:
A8461A
Versions:
S5671
S5671A
Legislative Cycle:
2011-2012
Law Section:
State Finance Law
Laws Affected:
Amd ยง163, St Fin L

Sponsor Memo

BILL NUMBER:S5671A REVISED 04/19/12

TITLE OF BILL:
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 procurement contract

PURPOSE:
To allow the commissioner or state agency discretion as to whether or
not to require a bond or other guarantee of performance, and to
approve the amount, form and sufficiency thereof.

SUMMARY OF PROVISIONS:
Section One - Amends state finance law to allow the commissioner or
state agency discretion as to whether or not to require a bond or
other guarantee of performance, and to approve the amount, form and
sufficiency thereof. If the letter of credit, either by itself or in
conjunction with another form or guarantee is used for this purpose,
the amount of the letter of credit shall not exceed three percent of
the total contract award amount. These restrictions shall not apply
to bond requirements issued pursuant to this section. An agency may
require other guarantees of performance in addition to a letter of
credit as provided in this paragraph.

Section Two - Establishes the effective date.

JUSTIFICATION:
Presently, there is no uniformity or guidelines as to the amount or
type of security a state agency or any other state entity requires in
the awarding of state contracts or projects. A state agency can
require a letter of credit for a certain amount as a security
interest in a project or the agency can require a letter of credit
and/or a bond as the security. The state can also proceed in awarding
a contract or project without a security interest. Since there is no
uniform standard, this legislation limits the amount required for a
letter of credit only, for any project to the level of risk involved
with the contract and in no case shall the letter of credit exceed
three percent of the total contract. This legislation does not limit
the amounts required for a bond security interest.

LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
None to the State.

EFFECTIVE DATE:
This act shall take effect immediately; provided, however, that the
amendments to paragraph d of subdivision 10 of section 163 of the
state finance law made by section one of this act shall not affect
the repeal of such section and shall be deemed repealed therewith

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5671--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              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:

  Section  1.  Paragraph d of subdivision 10 of section 163 of the state
finance law, as added by chapter 83 of the laws of 1995, is  amended  to
read as follows:
  d.  It  shall be in the discretion of the commissioner or state agency
to require a bond or other guarantee of performance, and to approve  the
amount,  form  and sufficiency thereof.  PROVIDED HOWEVER IF A LETTER OF
CREDIT, EITHER BY ITSELF OR IN CONJUNCTION WITH ANOTHER FORM OF  GUARAN-
TEE,  IS USED FOR THIS PURPOSE, THE AMOUNT OF THE LETTER OF CREDIT SHALL
NOT EXCEED THREE PERCENT OF THE TOTAL  CONTRACT  AWARD  AMOUNT.    THESE
RESTRICTIONS SHALL NOT APPLY TO ANY BOND REQUIREMENTS ISSUED PURSUANT TO
THIS  SECTION.  AN AGENCY MAY REQUIRE OTHER GUARANTEES OF PERFORMANCE IN
ADDITION TO A LETTER OF CREDIT AS PROVIDED IN THIS PARAGRAPH.
  S 2. This act shall take effect immediately; provided,  however,  that
the  amendments  to  paragraph d of subdivision 10 of section 163 of the
state finance law made by section one of this act shall not  affect  the
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

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