Assembly Bill A6902B

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

                                  6902

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             April 10, 2015
                               ___________

Introduced  by M. of A. BLAKE -- read once and referred to the Committee
  on Ways and Means

AN ACT to amend the state finance law, in relation  to  requiring  state
  agencies  to  pay minority and women-owned business enterprises within
  fifteen days of receipt of a request for payment

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

  Section  1.  The  state finance law is amended by adding a new section
139-l to read as follows:
  S 139-L. PAYMENT TO MINORITY  AND  WOMEN-OWNED  BUSINESS  ENTERPRISES.
NOTWITHSTANDING  THE  PROVISIONS  OF  ANY OTHER LAW TO THE CONTRARY, ALL
CONTRACTS MADE  AND  AWARDED  BY  A  STATE  AGENCY  TO  A  MINORITY  AND
WOMEN-OWNED  BUSINESS ENTERPRISE CERTIFIED PURSUANT TO ARTICLE FIFTEEN-A
OF THE EXECUTIVE LAW, HEREAFTER REFERRED TO AS CONTRACTOR, SHALL PROVIDE
FOR PAYMENT BY THE STATE AGENCY TO THE CONTRACTOR IN ACCORDANCE WITH THE
FOLLOWING:
  1. IN ACCORDANCE WITH THE TERMS OF THE CONTRACT, THE CONTRACTOR  SHALL
SUBMIT  TO THE STATE AGENCY A REQUEST FOR PAYMENT FOR THE WORK PERFORMED
AND/OR THE MATERIALS FURNISHED TO THE DATE OF THE REQUEST  FOR  PAYMENT,
LESS  ANY  AMOUNT PREVIOUSLY PAID TO THE CONTRACTOR. WITHIN FIFTEEN DAYS
OF RECEIPT OF THE REQUEST, THE STATE AGENCY SHALL IN ACCORDANCE WITH THE
TERMS OF THE CONTRACT APPROVE AND PROMPTLY PAY THE  CONTRACTOR  LESS  AN
AMOUNT  NECESSARY  TO SATISFY ANY CLAIMS, LIENS OR JUDGMENTS AGAINST THE
CONTRACTOR WHICH HAVE NOT BEEN SUITABLY DISCHARGED.  WHEN  THE  WORK  OR
MAJOR  PORTIONS THEREOF AS CONTEMPLATED BY THE TERMS OF THE CONTRACT ARE
SUBSTANTIALLY COMPLETED, THE CONTRACTOR SHALL SUBMIT TO THE STATE AGENCY
A REQUEST FOR PAYMENT OF THE REMAINING AMOUNT OF THE  CONTRACT  BALANCE.
WITHIN  FIFTEEN  DAYS OF RECEIPT OF SUCH REQUEST, THE STATE AGENCY SHALL
APPROVE AND PAY THE REMAINING AMOUNT OF THE CONTRACT  BALANCE  LESS  TWO
TIMES  THE  VALUE  OF  ANY REMAINING ITEMS TO BE COMPLETED AND AN AMOUNT
NECESSARY TO SATISFY ANY CLAIMS, LIENS OR JUDGMENTS AGAINST THE CONTRAC-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09804-01-5
              

A. 6902                             2

TOR WHICH HAVE NOT BEEN SUITABLY DISCHARGED. AS THE REMAINING  ITEMS  OF
WORK  ARE  SATISFACTORILY COMPLETED OR CORRECTED, THE STATE AGENCY SHALL
PROMPTLY PAY, WITHIN FIFTEEN DAYS OF RECEIPT OF A REQUEST  FOR  PAYMENT,
FOR  THESE  REMAINING  ITEMS  LESS  AN  AMOUNT  NECESSARY TO SATISFY ANY
CLAIMS, LIENS OR JUDGMENTS AGAINST THE CONTRACTOR WHICH  HAVE  NOT  BEEN
SUITABLY DISCHARGED. ANY CLAIMS, LIENS AND JUDGMENTS REFERRED TO IN THIS
SECTION  SHALL  PERTAIN TO THE WORK CONTRACTED FOR AND SHALL BE FILED IN
ACCORDANCE WITH THE TERMS OF THE APPLICABLE CONTRACT  AND/OR  APPLICABLE
LAWS.
  2.  IN THE EVENT THAT THE TERMS OF PAYMENT AS PROVIDED IN THIS SECTION
ARE PRE-EMPTED OR SUPERSEDED AS A RESULT OF THE PROVISIONS OF ANY FEDER-
AL STATUTE, REGULATION OR RULE, THE TERMS  OF  THIS  SECTION  SHALL  NOT
APPLY.
  S  2.  This  act shall take effect on the ninetieth day after it shall
have become a law.

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

                                 6902--A

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             April 10, 2015
                               ___________

Introduced  by  M.  of  A.  BLAKE, PEOPLES-STOKES, MOSLEY, BARRON, COOK,
  WRIGHT, CLARK, SEAWRIGHT -- Multi-Sponsored by -- M. of A.  THIELE  --
  read once and referred to the Committee on Ways and Means -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT  to  amend the state finance law, in relation to requiring state
  agencies to pay small businesses within fifteen days of receipt of  an
  invoice

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

  Section 1. Subdivisions 2 and 3 of section 179-f of the state  finance
law,  subdivision 2 as amended and subdivision 3 as added by chapter 153
of the laws of 1984, are amended and a new subdivision  6  is  added  to
read as follows:
  2.  The required payment date shall be thirty calendar days, excluding
legal holidays,  PROVIDED,  HOWEVER,  THAT  FOR  A  SMALL  BUSINESS  THE
REQUIRED  PAYMENT  DATE  SHALL BE FIFTEEN CALENDAR DAYS, EXCLUDING LEGAL
HOLIDAYS, or in the case  of  final  payments  on  highway  construction
contracts  seventy-five  calendar  days, excluding legal holidays, after
receipt of an invoice for the amount of the contract payment due; except
when:
  (a) the state comptroller in the course of his OR HER audit determines
that there is reasonable cause to believe that payment may not  properly
be due, in whole or in part;
  (b)  in  accordance with specific statutory or contractual provisions,
payment must be preceded by an inspection  period  or  by  an  audit  to
determine  the  resources  applied or used by a contractor in fulfilling
the terms of the contract;
  (c) the necessary state government appropriation required to authorize
payment has yet to be enacted;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09804-02-5

              

A. 6902--A                          2

  (d) the cash balance of the fund or sub-fund from which the payment is
to be made is insufficient to finance the payment;
  (e)  a proper invoice must be examined by the federal government prior
to payment;
  (f) the goods or property have not been delivered or the services have
not been rendered by the contractor in  compliance  with  the  terms  or
conditions of the contract;
  (g)  the required payment date is modified in accordance with subdivi-
sion three of this section; or
  (h) in the case of final payments on  highway  construction  contracts
the  commissioner  of  transportation determines that the contractor has
failed to properly submit the necessary documents and other  submissions
prescribed  by  the  contract  specifications  and  requirements, by the
provisions of subdivision eight of section thirty-eight of  the  highway
law,  and  by  all  other  applicable state and federal laws in order to
enable the department of transportation to  process  the  final  payment
properly and expeditiously.
  Any  time  taken  to satisfy or rectify any of the types of conditions
described in paragraphs (a) through (f) or (h) of this subdivision shall
extend the required payment date by an equal period of  time,  PROVIDED,
HOWEVER,  THAT  FOR SMALL BUSINESSES, THE REQUIRED PAYMENT DATE SHALL BE
FIFTEEN CALENDAR DAYS, EXCLUDING LEGAL HOLIDAYS, AFTER  SUCH  CONDITIONS
HAVE  BEEN SATISFIED OR RECTIFIED, AND PROVIDED FURTHER THAT ALL REASON-
ABLE AND PRACTICABLE EFFORTS SHALL BE TAKEN TO SATISFY OR  RECTIFY  SUCH
CONDITIONS AS SOON AS POSSIBLE.
  3. Each state agency shall have fifteen calendar days after receipt of
an  invoice  by the state agency at its designated payment office, OR IN
THE CARE OF AN INVOICE RECEIVED FROM A SMALL  BUSINESS,  SEVEN  CALENDAR
DAYS,  to  notify  the contractor of (a) defects in the delivered goods,
property, or services, (b) defects in  the  invoice,  or  (c)  suspected
improprieties  of  any kind; and the existence of such defects or impro-
prieties shall prevent the commencement of the time period specified  in
subdivision  two  of this section. When a state agency fails to notify a
contractor of such defects or  suspected  improprieties  within  fifteen
calendar  days,  OR  SEVEN  CALENDAR  DAYS IF SUCH CONTRACTOR IS A SMALL
BUSINESS, of receiving the invoice,  the  number  of  days  allowed  for
payment of the corrected proper invoice will be reduced by the number of
days between the fifteenth day, OR SEVENTH DAY IF PAYMENT OF SUCH PROPER
INVOICE IS FOR A SMALL BUSINESS, and the day that notification was tran-
smitted  to  the  contractor.  If  the state agency, in such situations,
fails to provide reasonable grounds for its contention that a defect  or
impropriety  exists,  the required payment date shall be calculated from
the date of receipt of an invoice.
  6. AS USED IN THIS SECTION, "SMALL BUSINESS"  SHALL  MEAN  A  BUSINESS
WHOSE  PRIMARY PLACE OF BUSINESS IS IN NEW YORK STATE, HAS A SIGNIFICANT
BUSINESS PRESENCE IN THE SATE, IS INDEPENDENTLY OWNED AND OPERATED,  NOT
DOMINANT IN ITS FIELD, AND EMPLOYS NO MORE THAN THREE HUNDRED EMPLOYEES.
  S 2. This act shall take effect on the one hundred eightieth day after
it  shall  have  become  a law and shall apply only to invoices received
after such date.