senate Bill S6469

Vetoed

Establishes that not-for-profit organizations shall be entitled to all prompt contracting interest due from a state agency at the time of the first payment

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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

  • 13 / Feb / 2012
    • REFERRED TO FINANCE
  • 25 / Apr / 2012
    • 1ST REPORT CAL.587
  • 26 / Apr / 2012
    • 2ND REPORT CAL.
  • 30 / Apr / 2012
    • ADVANCED TO THIRD READING
  • 02 / May / 2012
    • PASSED SENATE
  • 02 / May / 2012
    • DELIVERED TO ASSEMBLY
  • 02 / May / 2012
    • REFERRED TO WAYS AND MEANS
  • 04 / Jun / 2012
    • SUBSTITUTED FOR A9342
  • 04 / Jun / 2012
    • ORDERED TO THIRD READING CAL.702
  • 04 / Jun / 2012
    • PASSED ASSEMBLY
  • 04 / Jun / 2012
    • RETURNED TO SENATE
  • 05 / Dec / 2012
    • DELIVERED TO GOVERNOR
  • 17 / Dec / 2012
    • VETOED MEMO.188

Summary

Establishes that not-for-profit organizations shall be entitled to all prompt contracting interest due from a state agency at the time of the first payment made to any such organization.

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Bill Details

See Assembly Version of this Bill:
A9342
Versions:
S6469
Legislative Cycle:
2011-2012
Law Section:
State Finance Law
Laws Affected:
Amd ยง179-v, St Fin L
Versions Introduced in 2011-2012 Legislative Cycle:
A8092, A8092A

Sponsor Memo

BILL NUMBER:S6469

TITLE OF BILL: An act to amend the state finance law, in relation to
the payment of interest due to not-for-profit organizations

PURPOSE: To require agencies to pay any prompt contracting interest due
with thirty days of the date the payment or payments required under a
contract approved late are made to a not-for-profit organization.

SUMMARY OF PROVISIONS: Section 1 of this bill amends Subdivision 2 of

Section 179-v of the State Finance Law to establish that a not-for-pro-
fit organization shall be entitled to receive all interest due from a
state agency pursuant to this Section within thirty days of the date the
payment or payments required under a contract are made to any such
organization. Provided, however, if monies from any appropriation or
appropriations as described in Subdivision 3 of Section 179-v of the
State Finance Law are not available for the payment of such interest,
such payment shall be made immediately after such monies become avail-
able.

Section 2 of this bill provides for an effective date of immediately
after this bill is signed into law.

PRIOR LEGISLATIVE HISTORY: This is a new proposal.

JUSTIFICATION: The Prompt Contracting law (Article 11-B of the State
Finance Law) establishes the requirements for interest that is due on
late contracts for grants, but does not establish when that interest
must be paid. This creates an incentive for agencies to pay interest
late in the year or not at all. This situation makes the law ineffective
and disadvantages not-for-profits.

The Comptroller urges passage of this legislation.

BUDGET IMPLICATIONS: None

EFFECTIVE DATE: This act shall take effect immediately.

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

                                  6469

                            I N  S E N A T E

                            February 13, 2012
                               ___________

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  payment  of
  interest due to not-for-profit organizations

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 2 of section 179-v of the state finance law, as
added by chapter 166 of the laws of 1991, is amended to read as follows:
  2. Such organizations shall  receive  such  interest  payments  WITHIN
THIRTY  DAYS  OF  THE  DATE  THE  PAYMENT OR PAYMENTS REQUIRED UNDER THE
CONTRACT ARE MADE TO ANY SUCH ORGANIZATION; PROVIDED, HOWEVER, IF MONIES
FROM ANY APPROPRIATION OR APPROPRIATIONS  AS  DESCRIBED  IN  SUBDIVISION
THREE  OF  THIS SECTION ARE NOT AVAILABLE FOR THE PAYMENT OF SUCH INTER-
EST, SUCH PAYMENT SHALL BE MADE IMMEDIATELY  AFTER  SUCH  MONIES  BECOME
AVAILABLE.  SUCH  INTEREST PAYMENTS SHALL BE MADE at a rate equal to the
rate set by the commissioner of taxation and finance for corporate taxes
pursuant to paragraph one of subsection  (e)  of  section  one  thousand
ninety-six  of  the  tax  law.  In  order  for a state agency to approve
reimbursement of a not-for-profit organization at a rate other than  the
interest  rate  stated  in  this section the not-for-profit organization
shall submit documentation indicating the rate at which such funds  were
borrowed,  the  lender of such funds and any other information requested
by the state agency, attorney general  or  the  comptroller.  The  comp-
troller  may disallow such portions of the interest that the comptroller
deems unreasonable.
  S 2. This act shall take effect immediately.



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11124-03-1

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