The New York State Senate

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

                                 9174--A
                                                            R. R. 14

                          I N  A S S E M B L Y

                            February 1, 2016
                               ___________

Introduced  by  M.  of  A. BLAKE, AUBRY -- read once and referred to the
  Committee on Ways and Means -- amended on the special order  of  third
  reading,  ordered  reprinted  as  amended,  retaining its place on the
  special order of third reading

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; and to amend a chapter of the laws of 2015 amending the state
  finance law relating to requiring state agencies to  pay  small  busi-
  nesses  within  fifteen  days of receipt of an invoice, as proposed in
  legislative bills numbers S.5283-A and A.6902-B, in relation to making
  technical corrections

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

  Section  1. Subdivisions 2 and 6 of section 179-f of the state finance
law, subdivision 2 as amended and subdivision 6 as added by a chapter of
the laws of 2015 amending the state finance law  relating  to  requiring
state agencies to pay small businesses within fifteen days of receipt of
an  invoice,  as  proposed  in  legislative  bills  numbers S.5283-A and
A.6902-B, subdivision 2 as separately amended by a chapter of  the  laws
of  2015 amending the state finance law relating to the determination of
eligibility for payment of interest on amounts owed to  contractors,  as
proposed  in legislative bills numbers S.4929 and A.7579, are amended 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,  ABSENT  A  SHOWING BY THE CONTRACTING AGENCY OF CIRCUMSTANCES
BEYOND ITS CONTROL, PROVIDED THAT THE SMALL BUSINESS SUBMITS ITS INVOICE
ELECTRONICALLY, IN CONFORMANCE WITH THE POLICIES AND PROCEDURES  OF  THE
ACCOUNTING AND FINANCIAL MANAGEMENT SYSTEM OF STATE GOVERNMENT AND IDEN-
TIFIES  THAT  IT IS SEEKING EXPEDITED PAYMENT AS A SMALL BUSINESS, 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:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD09804-14-6

A. 9174--A                          2

  (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;
  (d) a proper invoice must be examined by the federal government  prior
to payment;
  (e) 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;
  (f) the required payment date is modified in accordance with  subdivi-
sion three of this section; or
  (g)  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 (e) or (g) 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.
  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 state, is independently owned and operated, not
dominant in its field, and employs no  more  than  [three]  TWO  hundred
employees  AT  THE TIME OF THE AWARD CONTRACTING AND PAYMENT. THE "SMALL
BUSINESS" SHALL, UPON  REQUEST,  PROVIDE  THE  CONTRACTING  ENTITY  WITH
SUFFICIENT  DOCUMENTATION  TO  REFLECT AND CONFIRM ITS STATUS AS A SMALL
BUSINESS.
  S 2. Section 2 of a chapter of the laws of  2015  amending  the  state
finance law relating to requiring state agencies to pay small businesses
within fifteen days of receipt of an invoice, as proposed in legislative
bills numbers S.5283-A and A.6902-B, is amended to read as follows:
  S 2. This act shall take effect on the [one] THREE hundred [eightieth]
SIXTY-FIFTH day after it shall have become a law and shall apply only to
invoices received after such date.
  S  3.  This  act  shall  take  effect on the same date and in the same
manner as a chapter of the laws of 2015 amending the the  state  finance
law  relating to requiring state agencies to pay small businesses within
fifteen days of receipt of an invoice, as proposed in legislative  bills
numbers S.5283-A and A.6902-B, takes effect.