senate Bill S5189

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

  • 14 / May / 2013
    • REFERRED TO FINANCE
  • 21 / May / 2013
    • 1ST REPORT CAL.657
  • 22 / May / 2013
    • 2ND REPORT CAL.
  • 23 / May / 2013
    • ADVANCED TO THIRD READING
  • 29 / May / 2013
    • PASSED SENATE
  • 29 / May / 2013
    • DELIVERED TO ASSEMBLY
  • 29 / May / 2013
    • REFERRED TO GOVERNMENTAL OPERATIONS
  • 19 / Jun / 2013
    • SUBSTITUTED FOR A7471
  • 19 / Jun / 2013
    • ORDERED TO THIRD READING RULES CAL.462
  • 19 / Jun / 2013
    • PASSED ASSEMBLY
  • 19 / Jun / 2013
    • RETURNED TO SENATE
  • 09 / Oct / 2013
    • DELIVERED TO GOVERNOR
  • 21 / Oct / 2013
    • VETOED MEMO.235

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:
A7471
Versions:
S5189
Legislative Cycle:
2013-2014
Law Section:
State Finance Law
Laws Affected:
Amd ยง179-v, St Fin L
Versions Introduced in Previous Legislative Cycles:
2011-2012: A8092, S6469, S6569, A8092A, A9342, A9347
2009-2010: A8873A
2007-2008: A1867A

Sponsor Memo

BILL NUMBER:S5189

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 within
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 - amends Subdivision 2 of Section 179-v of the State Finance
Law to establish that a not-for-profit 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 available.

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

PRIOR LEGISLATIVE HISTORY:

2012 - S.6469/A.9342

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.

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
________________________________________________________________________

                                  5189

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 14, 2013
                               ___________

Introduced  by  Sens.  DeFRANCISCO,  VALESKY  --  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.
                                                           LBD10979-01-3

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