Requires state agencies to pay small businesses within fifteen days of receipt of an invoice.
TITLE OF BILL:
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
PURPOSE OR GENERAL IDEA OF BILL:
To ensure that certified Minority and Women-Owned Business Enterprises (MWBE) are paid within fifteen days of receipt of a request for payment so that they may continue to sustain themselves and conduct their business activities.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 requires state agencies to pay Minority and Women-Owned Business contractors within fifteen days of the receipt for their request for payment. Before this request can be submitted the work or major portions defined by the terms of the contract must be substantially completed.
Section 2 defines the effective date of this act.
Many MWBE's have limited available funds to carry them from each respective pay period, let alone month to month. Therefore, in order to ensure that MWBEs and respectively their employees are given the best opportunity to succeed and sustain themselves, it's imperative to implement a prompt pay system that has been proposed and implemented in other parts of the country to ensure the sustainability of these businesses.
PRIOR LEGISLATIVE HISTORY:
This is a new bill.
To be determined.
This act shall take effect on the ninetieth day after it shall become a law.
STATE OF NEW YORK ________________________________________________________________________ 5283 2015-2016 Regular Sessions IN SENATE May 12, 2015 ___________Introduced by Sen. MARTINS -- 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 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 S. 5283 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.