senate Bill S6482

Vetoed

Establishes that not-for-profit organizations and public benefit corporations 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

  • 29 / Jan / 2014
    • REFERRED TO FINANCE
  • 29 / Apr / 2014
    • 1ST REPORT CAL.421
  • 30 / Apr / 2014
    • 2ND REPORT CAL.
  • 05 / May / 2014
    • ADVANCED TO THIRD READING
  • 28 / May / 2014
    • PASSED SENATE
  • 28 / May / 2014
    • DELIVERED TO ASSEMBLY
  • 28 / May / 2014
    • REFERRED TO GOVERNMENTAL OPERATIONS
  • 11 / Jun / 2014
    • SUBSTITUTED FOR A8964
  • 11 / Jun / 2014
    • ORDERED TO THIRD READING RULES CAL.182
  • 11 / Jun / 2014
    • PASSED ASSEMBLY
  • 11 / Jun / 2014
    • RETURNED TO SENATE
  • 10 / Nov / 2014
    • DELIVERED TO GOVERNOR
  • 21 / Nov / 2014
    • VETOED MEMO.518

Summary

Establishes that not-for-profit organizations and public benefit corporations 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 Details

See Assembly Version of this Bill:
A8964
Versions:
S6482
Legislative Cycle:
2013-2014
Law Section:
State Finance Law
Laws Affected:
Amd ยง179-v, St Fin L

Sponsor Memo

BILL NUMBER:S6482

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

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 include public benefit corps
and 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 and public benefit corps.

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
________________________________________________________________________

                                  6482

                            I N  S E N A T E

                            January 29, 2014
                               ___________

Introduced  by  Sen.  DeFRANCISCO -- 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 and public benefit corpo-
  rations

  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 OR PUBLIC BENEFIT  CORPO-
RATION 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 comptroller 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.
                                                           LBD13727-01-4

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