NY State Assembly Bill 2015-A3589A

Assembly Bill A3589A

2015-2016 Legislative Session

Relates to prompt payments to local governments of state aid payments associated with disaster relief

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Archive: Last Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 21, 2016	print number 3589a
Jan 21, 2016	amend and recommit to governmental operations
Jan 06, 2016	referred to governmental operations
Jan 27, 2015	referred to governmental operations

Bill Amendments

Original

A (Active)

2015-A3589 - Details

See Senate Version of this Bill:: S2608
Current Committee:: Assembly Governmental Operations
Law Section:: State Finance Law
Laws Affected:: Amd §§179-d, 179-e, 179-f, 179-g, 179-h, 179-k, 179-m & 179-p, St Fin L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S6003
2017-2018: A4484

2015-A3589 - Summary

Enacts procedures to ensure prompt payments to local governments of state aid payments associated with disaster relief.

2015-A3589 - Bill Text download pdf

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

                                  3589

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 27, 2015
                               ___________

Introduced  by M. of A. MAGEE -- read once and referred to the Committee
  on Governmental Operations

AN ACT to amend the state finance law, in relation to prompt payments to
  local governments of certain state aid associated with disaster relief

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

  Section 1. Section 179-d of the state finance law, as added by chapter
153 of the laws of 1984, is amended to read as follows:
  S  179-d. Legislative intent. Firms and organizations that do business
with the state of New York expect and deserve to be paid in a prompt and
timely manner.   Unjustified  delays  in  paying  vendors,  construction
contractors,  and  providers  of  service  may discourage such firms and
organizations from doing business with the state of  New  York  and  may
ultimately  increase  the  costs  to  the state government of purchasing
materials, equipment, and supplies; undertaking construction and  recon-
struction  projects;  and  obtaining  a wide variety of professional and
other specialized services including those that are provided to  persons
in  need.  Consequently, this legislation sets standards for the payment
of bills incurred by state agencies within specified periods of time and
requires interest payments in situations where contract payments do  not
conform  to these standards. Consistent with accepted business practices
and with sound principles of fiscal management, it is the intent of this
legislation to encourage state agencies in all three branches  of  state
government  to make payments at least as expeditiously as they currently
do and further to reduce  existing  payment  processing  times  whenever
feasible,  while  at  the  same  time  permitting  the state agencies to
perform proper and reasonable financial oversight activities designed to
ensure that the state government  receives  the  quality  of  goods  and
services  to  which  it  is entitled and to ensure that public funds are
spent in a prudent and responsible manner.    ADDITIONALLY,  THE  PROMPT
PAYMENT  OF  AMOUNTS DUE TO LOCAL GOVERNMENT UNITS ASSOCIATED WITH STORM

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07538-01-5

A. 3589                             2

RELIEF AND RECOVERY IS VITAL TO THE CONTINUED ECONOMIC VIABILITY OF  THE
STATE AS A WHOLE. STORM-RAVAGED COMMUNITIES MUST BE PROVIDED RELIEF IN A
MANNER  THAT  ALLOWS FOR EXPEDITED REPAIR OF MUNICIPAL INFRASTRUCTURE SO
THAT RESIDENTS OF SUCH COMMUNITIES CAN CONTINUE THEIR DAY-TO-DAY LIVES.
  S 2. Section 179-e of the state finance law is amended by adding a new
subdivision 11 to read as follows:
  11. "UNIT OF LOCAL GOVERNMENT" MEANS COUNTIES, CITIES, TOWNS, VILLAGES
AND SCHOOL DISTRICTS.
  S  3.  Subdivisions 1 and 2 of section 179-f of the state finance law,
subdivision 1 as amended by chapter 332 of the laws of 1989 and subdivi-
sion 2 as amended by chapter 153 of the laws of  1984,  are  amended  to
read as follows:
  1.  Each  state  agency which is required to make a payment from state
funds pursuant to a contract OR PURSUANT TO A STATE OR FEDERAL STATUTORY
OR REGULATORY OBLIGATION TO MAKE A PAYMENT TO A UNIT OF LOCAL GOVERNMENT
WHERE SUCH PAYMENT IS MEANT TO ASSIST SUCH UNIT  WITH  RECOVERY  FROM  A
NATURAL  DISASTER and which does not make such [contract] payment by the
required payment date shall make an interest payment to  the  contractor
OR  UNIT  OF  LOCAL  GOVERNMENT  in  accordance with this article on the
amount of the [contract] payment which is due, unless  failure  to  make
such  [contract]  payment  is the result of a lien, attachment, or other
legal process against the money due said contractor  OR  UNIT  OF  LOCAL
GOVERNMENT,  or unless the amount of the interest payment as computed in
accordance with the provisions of section one hundred seventy-nine-g  of
this article is less than ten dollars. A pro rata share of such interest
shall be paid by the contractor or subcontractor, as the case may be, to
subcontractors  and  materialmen in a proportion equal to the percentage
of their pro rata share of the contract payment. Such pro rata share  of
interest  shall  be  due to such subcontractors and materialmen only for
those payments which are not paid to such subcontractors and materialmen
prior to the date upon which interest begins to accrue between the state
agency and the contractor. Such pro rata  share  of  interest  shall  be
computed  daily  until  such payments are made to the subcontractors and
materialmen.
  2. The required payment date shall be thirty 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 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) 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;

A. 3589                             3

  (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.   FOR
PURPOSES OF A PAYMENT TO A UNIT OF LOCAL GOVERNMENT WHERE  SUCH  PAYMENT
IS  MEANT TO ASSIST SUCH UNIT WITH RECOVERY FROM A NATURAL DISASTER, THE
REQUIRED PAYMENT DATE SHALL BE NO LATER THAN REQUIRED BY LAW.
  S 4. Section 179-g of the state finance law, as amended by chapter  61
of the laws of 1989, is amended to read as follows:
  S 179-g. Computation of interest payment. Interest payments on amounts
due  to a contractor, OR UNIT OF LOCAL GOVERNMENT pursuant to this arti-
cle shall be paid to the contractor, OR UNIT OF LOCAL GOVERNMENT for the
period beginning on the day after the required payment date  and  ending
on  the payment date for those payments required according to this arti-
cle and shall be paid at the rate of interest in effect on the date when
the interest payment is made. Notwithstanding any other provision of law
to the contrary, interest shall be computed at the  rate  equal  to  the
overpayment  rate set by the commissioner of taxation and finance pursu-
ant to subsection (e) of section one thousand ninety-six of the tax law.
  S 5. Section 179-h of the state finance law, as amended by chapter 153
of the laws of 1984, is amended to read as follows:
  S  179-h.  Determination  of  appropriations  against  which  interest
payments are to be charged. Except in situations when federal law or the
provisions of section one hundred seventy-nine-o of this article require
otherwise,  an  interest  payment required by this article shall be paid
from the same appropriation  as  that  from  which  the  related  proper
invoice, OR NATURAL DISASTER RELIEF ASSISTANCE is paid; provided, howev-
er,  (1)  that the interest payment shall not reduce the amount of money
that otherwise will be payable to  the  contractor,  OR  UNIT  OF  LOCAL
GOVERNMENT under the terms of the relevant contract, OR NATURAL DISASTER
RELIEF  ASSISTANCE RESPECTIVELY and, FOR PURPOSES OF AN INTEREST PAYMENT
OWED TO A CONTRACTOR (2) that if the  obligation  to  make  an  interest
payment  is incurred in whole or in part because it takes the department
of audit and control more than  eight  calendar  days,  excluding  legal
holidays,  from  the date it receives an approvable voucher from another
state agency to process a contract payment,  then  the  portion  of  the
total  interest payment that is attributable to delays by the department
of audit and control shall be paid from  funds  made  available  to  the
department  of audit and control. Notwithstanding any other provision of
law to the contrary, if the amount of  money  available  from  any  such
appropriation  to  the state agency which received the proper invoice is
insufficient to pay the interest and if for any reason it is not  feasi-
ble  for  the  director of the budget to exercise the transfer or inter-
change authority established by section  fifty-one  or  ninety-three  of
this  chapter,  the  director  of  the budget may issue a certificate or
certificates transferring or interchanging within a fund such amount  as
is  needed  to  pay  the interest to said appropriation within such fund

A. 3589                             4

from the unspent balance of any appropriation that is available  to  the
same  state  agency.  In  exercising  the latter transfer or interchange
authority, the director of the  budget  shall  transfer  or  interchange
amounts  that  are  not  needed to accomplish the purposes for which the
appropriation was made, except, however, the director of the budget may,
to the extent he deems it practicable, transfer or  interchange  amounts
from  appropriations  that otherwise would be available for the adminis-
tration and operations of the state agency which incurred  the  interest
payment.  Any such certificate or certificates issued by the director of
the budget shall be sent to the state comptroller and  copies  shall  be
filed with the chairman of the senate finance committee and the chairman
of the assembly ways and means committee.
  S  6.  Section 179-k of the state finance law, as added by chapter 153
of the laws of 1984, is amended to read as follows:
  S 179-k. Acceptance of payment. The acceptance of payment, in whole or
in part, by a contractor, OR UNIT  OF  LOCAL  GOVERNMENT  shall  not  be
deemed  to  constitute  a  waiver  of  interest  otherwise due under the
provisions of this article nor to supersede the  provisions  of  section
one hundred forty-five of this chapter.
  S 7. Subdivision 1 of section 179-m of the state finance law, as added
by  chapter  153  of the laws of 1984, paragraph d as amended by chapter
618 of the laws of 1994, is amended to read as follows:
  1. The state comptroller shall:
  a. Promulgate such rules and regulations as may be necessary to  carry
out the comptroller's responsibilities under this article.
  b.  Develop  and  implement  a procedure for calculating the amount of
interest, if any, due to any contractor, OR  UNIT  OF  LOCAL  GOVERNMENT
pursuant  to  the  provisions of this article. [Such] FOR PURPOSES OF AN
INTEREST PAYMENT OWED TO A  CONTRACTOR,  SUCH  procedure  shall  include
provisions  for  calculating  (i)  the amount of time, in calendar days,
between the date of receipt of a proper invoice by the state agency  and
the date on which an approvable voucher was delivered to the state comp-
troller; (ii) the amount of time between the date on which an approvable
voucher  was  delivered  to  the state comptroller and the payment date;
(iii) the amount of interest, if any, chargeable  to  the  state  agency
involved  pursuant  to this article; and (iv) the amount of interest, if
any, chargeable to the department of audit and control pursuant to  this
article.
  c. [Develop] FOR PURPOSES OF AN INTEREST PAYMENT OWED TO A CONTRACTOR,
DEVELOP  and  implement a procedure for paying such interest in not more
than seven days from the payment date on those proper invoices for which
interest is due and for which the director of the budget does not  issue
a certificate or certificates increasing, transferring, or interchanging
funds so that an interest payment can be made [pusuant] PURSUANT to this
article.    The comptroller shall also develop and implement a procedure
for paying such interest in not more than fourteen days from the payment
date on those proper invoices for which interest is due  and  for  which
the  director  of  the  budget  does issue a certificate or certificates
increasing, transferring, or interchanging funds  so  that  an  interest
payment can be made pursuant to this article.
  d. [Develop] FOR PURPOSES OF AN INTEREST PAYMENT OWED TO A CONTRACTOR,
DEVELOP and implement a procedure by which every state agency will noti-
fy  contractors  promptly  and  directly  whenever the state comptroller
rejects a voucher and returns it to the state agency due to an error  or
omission in the voucher by the contractor.

A. 3589                             5

  S  8.  Section 179-p of the state finance law, as added by chapter 153
of the laws of 1984, is amended to read as follows:
  S  179-p.  Inapplicability  of  the provisions. The provisions of this
article shall not apply to payments due and owing by the state:
  1. under the eminent domain procedure law;
  2. as interest allowed on judgments rendered by a  court  pursuant  to
any provision of law other than those provisions contained in this arti-
cle;
  3.  to  the  federal  government;  to  any state agency or its related
instrumentalities; to any duly  constituted  unit  of  local  government
including, but not limited to, counties, cities, towns, villages, school
districts,  special districts, or any of their related instrumentalities
EXCEPT IN THE CASE IN WHICH STATE PAYMENTS ARE MADE FOR EXPENSES RELATED
TO DAMAGE RESULTING FROM A NATURAL DISASTER; to any public authority  or
public  benefit  corporation;  or  to  employees  of state agencies when
acting in, or incidental to, their public employment capacity;
  4. to contractors of third party payment agreements including, but not
limited to, the fiscal agent or fiscal intermediary designated  pursuant
to section three hundred sixty-seven-b of the social services law;
  5.  to  entities  which  receive  state funds through any intermediary
organization other than a state agency; or
  6. in situations where the comptroller exercises a legally  authorized
set-off against all or part of the payment due the contractor.
  S 9. This act shall take effect immediately.

2015-A3589A (ACTIVE) - Details

See Senate Version of this Bill:: S2608
Current Committee:: Assembly Governmental Operations
Law Section:: State Finance Law
Laws Affected:: Amd §§179-d, 179-e, 179-f, 179-g, 179-h, 179-k, 179-m & 179-p, St Fin L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S6003
2017-2018: A4484

2015-A3589A (ACTIVE) - Summary

Enacts procedures to ensure prompt payments to local governments of state aid payments associated with disaster relief.

2015-A3589A (ACTIVE) - Bill Text download pdf

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

                                 3589--A

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 27, 2015
                               ___________

Introduced  by M. of A. MAGEE -- read once and referred to the Committee
  on Governmental Operations -- recommitted to the Committee on  Govern-
  mental  Operations  in  accordance  with  Assembly  Rule  3, sec. 2 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

AN ACT to amend the state finance law, in relation to prompt payments to
  local governments of certain state aid associated with disaster relief

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

  Section 1. Section 179-d of the state finance law, as added by chapter
153 of the laws of 1984, is amended to read as follows:
  S 179-d. Legislative intent. Firms and organizations that do  business
with the state of New York expect and deserve to be paid in a prompt and
timely  manner.    Unjustified  delays  in  paying vendors, construction
contractors, and providers of service  may  discourage  such  firms  and
organizations  from  doing  business  with the state of New York and may
ultimately increase the costs to  the  state  government  of  purchasing
materials,  equipment, and supplies; undertaking construction and recon-
struction projects; and obtaining a wide  variety  of  professional  and
other  specialized services including those that are provided to persons
in need.  Consequently, this legislation sets standards for the  payment
of bills incurred by state agencies within specified periods of time and
requires  interest payments in situations where contract payments do not
conform to these standards. Consistent with accepted business  practices
and with sound principles of fiscal management, it is the intent of this
legislation  to  encourage state agencies in all three branches of state
government to make payments at least as expeditiously as they  currently
do  and  further  to  reduce  existing payment processing times whenever
feasible, while at the  same  time  permitting  the  state  agencies  to
perform proper and reasonable financial oversight activities designed to
ensure  that  the  state  government  receives  the quality of goods and

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07538-03-6

A. 3589--A                          2

services to which it is entitled and to ensure  that  public  funds  are
spent  in  a  prudent and responsible manner.   ADDITIONALLY, THE PROMPT
PAYMENT OF AMOUNTS DUE TO LOCAL GOVERNMENT UNITS ASSOCIATED  WITH  STORM
RELIEF  AND RECOVERY IS VITAL TO THE CONTINUED ECONOMIC VIABILITY OF THE
STATE AS A WHOLE. STORM-RAVAGED COMMUNITIES MUST BE PROVIDED RELIEF IN A
MANNER THAT ALLOWS FOR EXPEDITED REPAIR OF MUNICIPAL  INFRASTRUCTURE  SO
THAT RESIDENTS OF SUCH COMMUNITIES CAN CONTINUE THEIR DAY-TO-DAY LIVES.
  S 2. Section 179-e of the state finance law is amended by adding a new
subdivision 11 to read as follows:
  11. "UNIT OF LOCAL GOVERNMENT" MEANS COUNTIES, CITIES, TOWNS, VILLAGES
AND SCHOOL DISTRICTS.
  S  3.  Subdivisions 1 and 2 of section 179-f of the state finance law,
subdivision 1 as amended by chapter 332 of the laws of 1989 and subdivi-
sion 2 as amended by chapter 548 of the laws of  2015,  are  amended  to
read as follows:
  1.  Each  state  agency which is required to make a payment from state
funds pursuant to a contract OR PURSUANT TO A STATE OR FEDERAL STATUTORY
OR REGULATORY OBLIGATION TO MAKE A PAYMENT TO A UNIT OF LOCAL GOVERNMENT
WHERE SUCH PAYMENT IS MEANT TO ASSIST SUCH UNIT  WITH  RECOVERY  FROM  A
NATURAL  DISASTER and which does not make such [contract] payment by the
required payment date shall make an interest payment to  the  contractor
OR  UNIT  OF  LOCAL  GOVERNMENT  in  accordance with this article on the
amount of the [contract] payment which is due, unless  failure  to  make
such  [contract]  payment  is the result of a lien, attachment, or other
legal process against the money due said contractor  OR  UNIT  OF  LOCAL
GOVERNMENT,  or unless the amount of the interest payment as computed in
accordance with the provisions of section one hundred seventy-nine-g  of
this article is less than ten dollars. A pro rata share of such interest
shall be paid by the contractor or subcontractor, as the case may be, to
subcontractors  and  materialmen in a proportion equal to the percentage
of their pro rata share of the contract payment. Such pro rata share  of
interest  shall  be  due to such subcontractors and materialmen only for
those payments which are not paid to such subcontractors and materialmen
prior to the date upon which interest begins to accrue between the state
agency and the contractor. Such pro rata  share  of  interest  shall  be
computed  daily  until  such payments are made to the subcontractors and
materialmen.
  2. The required payment date shall be thirty 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 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;

A. 3589--A                          3

  (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.   FOR
PURPOSES OF A PAYMENT TO A UNIT OF LOCAL GOVERNMENT WHERE  SUCH  PAYMENT
IS  MEANT TO ASSIST SUCH UNIT WITH RECOVERY FROM A NATURAL DISASTER, THE
REQUIRED PAYMENT DATE SHALL BE NO LATER THAN REQUIRED BY LAW.
  S 4. Subdivision 2 of section 179-f of the state finance law, as sepa-
rately amended by chapters 548 and 568 of the laws of 2015,  is  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, 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;
  (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-

A. 3589--A                          4

able  and  practicable efforts shall be taken to satisfy or rectify such
conditions as soon as possible.  FOR PURPOSES OF A PAYMENT TO A UNIT  OF
LOCAL  GOVERNMENT  WHERE  SUCH PAYMENT IS MEANT TO ASSIST SUCH UNIT WITH
RECOVERY  FROM A NATURAL DISASTER, THE REQUIRED PAYMENT DATE SHALL BE NO
LATER THAN REQUIRED BY LAW.
  S 5. Section 179-g of the state finance law, as amended by chapter  61
of the laws of 1989, is amended to read as follows:
  S 179-g. Computation of interest payment. Interest payments on amounts
due  to a contractor, OR UNIT OF LOCAL GOVERNMENT pursuant to this arti-
cle shall be paid to the contractor, OR UNIT OF LOCAL GOVERNMENT for the
period beginning on the day after the required payment date  and  ending
on  the payment date for those payments required according to this arti-
cle and shall be paid at the rate of interest in effect on the date when
the interest payment is made. Notwithstanding any other provision of law
to the contrary, interest shall be computed at the  rate  equal  to  the
overpayment  rate set by the commissioner of taxation and finance pursu-
ant to subsection (e) of section one thousand ninety-six of the tax law.
  S 6. Section 179-h of the state finance law, as amended by chapter 153
of the laws of 1984, is amended to read as follows:
  S  179-h.  Determination  of  appropriations  against  which  interest
payments are to be charged. Except in situations when federal law or the
provisions of section one hundred seventy-nine-o of this article require
otherwise,  an  interest  payment required by this article shall be paid
from the same appropriation  as  that  from  which  the  related  proper
invoice, OR NATURAL DISASTER RELIEF ASSISTANCE is paid; provided, howev-
er,  (1)  that the interest payment shall not reduce the amount of money
that otherwise will be payable to  the  contractor,  OR  UNIT  OF  LOCAL
GOVERNMENT under the terms of the relevant contract, OR NATURAL DISASTER
RELIEF  ASSISTANCE RESPECTIVELY and, FOR PURPOSES OF AN INTEREST PAYMENT
OWED TO A CONTRACTOR (2) that if the  obligation  to  make  an  interest
payment  is incurred in whole or in part because it takes the department
of audit and control more than  eight  calendar  days,  excluding  legal
holidays,  from  the date it receives an approvable voucher from another
state agency to process a contract payment,  then  the  portion  of  the
total  interest payment that is attributable to delays by the department
of audit and control shall be paid from  funds  made  available  to  the
department  of audit and control. Notwithstanding any other provision of
law to the contrary, if the amount of  money  available  from  any  such
appropriation  to  the state agency which received the proper invoice is
insufficient to pay the interest and if for any reason it is not  feasi-
ble  for  the  director of the budget to exercise the transfer or inter-
change authority established by section  fifty-one  or  ninety-three  of
this  chapter,  the  director  of  the budget may issue a certificate or
certificates transferring or interchanging within a fund such amount  as
is  needed  to  pay  the interest to said appropriation within such fund
from the unspent balance of any appropriation that is available  to  the
same  state  agency.  In  exercising  the latter transfer or interchange
authority, the director of the  budget  shall  transfer  or  interchange
amounts  that  are  not  needed to accomplish the purposes for which the
appropriation was made, except, however, the director of the budget may,
to the extent he deems it practicable, transfer or  interchange  amounts
from  appropriations  that otherwise would be available for the adminis-
tration and operations of the state agency which incurred  the  interest
payment.  Any such certificate or certificates issued by the director of
the budget shall be sent to the state comptroller and  copies  shall  be

A. 3589--A                          5

filed with the chairman of the senate finance committee and the chairman
of the assembly ways and means committee.
  S  7.  Section 179-k of the state finance law, as added by chapter 153
of the laws of 1984, is amended to read as follows:
  S 179-k. Acceptance of payment. The acceptance of payment, in whole or
in part, by a contractor, OR UNIT  OF  LOCAL  GOVERNMENT  shall  not  be
deemed  to  constitute  a  waiver  of  interest  otherwise due under the
provisions of this article nor to supersede the  provisions  of  section
one hundred forty-five of this chapter.
  S 8. Subdivision 1 of section 179-m of the state finance law, as added
by  chapter  153  of the laws of 1984, paragraph d as amended by chapter
618 of the laws of 1994, is amended to read as follows:
  1. The state comptroller shall:
  a. Promulgate such rules and regulations as may be necessary to  carry
out the comptroller's responsibilities under this article.
  b.  Develop  and  implement  a procedure for calculating the amount of
interest, if any, due to any contractor, OR  UNIT  OF  LOCAL  GOVERNMENT
pursuant  to  the  provisions of this article. [Such] FOR PURPOSES OF AN
INTEREST PAYMENT OWED TO A  CONTRACTOR,  SUCH  procedure  shall  include
provisions  for  calculating  (i)  the amount of time, in calendar days,
between the date of receipt of a proper invoice by the state agency  and
the date on which an approvable voucher was delivered to the state comp-
troller; (ii) the amount of time between the date on which an approvable
voucher  was  delivered  to  the state comptroller and the payment date;
(iii) the amount of interest, if any, chargeable  to  the  state  agency
involved  pursuant  to this article; and (iv) the amount of interest, if
any, chargeable to the department of audit and control pursuant to  this
article.
  c. [Develop] FOR PURPOSES OF AN INTEREST PAYMENT OWED TO A CONTRACTOR,
DEVELOP  and  implement a procedure for paying such interest in not more
than seven days from the payment date on those proper invoices for which
interest is due and for which the director of the budget does not  issue
a certificate or certificates increasing, transferring, or interchanging
funds so that an interest payment can be made [pusuant] PURSUANT to this
article.    The comptroller shall also develop and implement a procedure
for paying such interest in not more than fourteen days from the payment
date on those proper invoices for which interest is due  and  for  which
the  director  of  the  budget  does issue a certificate or certificates
increasing, transferring, or interchanging funds  so  that  an  interest
payment can be made pursuant to this article.
  d. [Develop] FOR PURPOSES OF AN INTEREST PAYMENT OWED TO A CONTRACTOR,
DEVELOP and implement a procedure by which every state agency will noti-
fy  contractors  promptly  and  directly  whenever the state comptroller
rejects a voucher and returns it to the state agency due to an error  or
omission in the voucher by the contractor.
  S  9.  Section 179-p of the state finance law, as added by chapter 153
of the laws of 1984, is amended to read as follows:
  S 179-p. Inapplicability of the provisions.  The  provisions  of  this
article shall not apply to payments due and owing by the state:
  1. under the eminent domain procedure law;
  2.  as  interest  allowed on judgments rendered by a court pursuant to
any provision of law other than those provisions contained in this arti-
cle;
  3. to the federal government; to  any  state  agency  or  its  related
instrumentalities;  to  any  duly  constituted  unit of local government
including, but not limited to, counties, cities, towns, villages, school

A. 3589--A                          6

districts, special districts, or any of their related  instrumentalities
EXCEPT IN THE CASE IN WHICH STATE PAYMENTS ARE MADE FOR EXPENSES RELATED
TO  DAMAGE RESULTING FROM A NATURAL DISASTER; to any public authority or
public  benefit  corporation;  or  to  employees  of state agencies when
acting in, or incidental to, their public employment capacity;
  4. to contractors of third party payment agreements including, but not
limited to, the fiscal agent or fiscal intermediary designated  pursuant
to section three hundred sixty-seven-b of the social services law;
  5.  to  entities  which  receive  state funds through any intermediary
organization other than a state agency; or
  6. in situations where the comptroller exercises a legally  authorized
set-off against all or part of the payment due the contractor.
  S  10.  This act shall take effect immediately; provided however, that
if chapter 568 of the laws of 2015 shall not have  taken  effect  on  or
before such date, then section four of this act shall take effect on the
same  date  and  in  the same manner as such chapter of the laws of 2015
takes effect.

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