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

                                 6387--A
    Cal. No. 18

                            I N  S E N A T E

                             January 8, 2016
                               ___________

Introduced  by  Sen. MARTINS -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules -- reported  favora-
  bly  from said committee, ordered to a third reading, passed by Senate
  and delivered to the Assembly, recalled, vote  reconsidered,  restored
  to  third  reading, amended and ordered reprinted, retaining its place
  in the 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, 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.
                                                           LBD09804-10-6
              

S. 6387--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) 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.
  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.

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

                                 6387--B
    Cal. No. 18

                            I N  S E N A T E

                             January 8, 2016
                               ___________

Introduced  by  Sen. MARTINS -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules -- reported  favora-
  bly  from said committee, ordered to a third reading, passed by Senate
  and delivered to the Assembly, recalled, vote  reconsidered,  restored
  to  third  reading, amended and ordered reprinted, retaining its place
  in the order of third reading -- again amended and ordered  reprinted,
  retaining its place in the 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

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

                      [ ] is old law to be omitted.
                                                           LBD09804-13-6

S. 6387--B                          2

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-
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.