Establishes that not-for-profit organizations shall be entitled to all prompt contracting interest due from a state agency at the time of the first payment made to any such organization.

---

S6469-2011 Actions

• Dec 17, 2012: VETOED MEMO.188
• Dec 5, 2012: DELIVERED TO GOVERNOR
• Jun 4, 2012: returned to senate
• Jun 4, 2012: passed assembly
• Jun 4, 2012: ordered to third reading cal.702
• Jun 4, 2012: substituted for a9342
• May 2, 2012: referred to ways and means
• May 2, 2012: DELIVERED TO ASSEMBLY
• May 2, 2012: PASSED SENATE
• Apr 30, 2012: ADVANCED TO THIRD READING
• Apr 26, 2012: 2ND REPORT CAL.
• Apr 25, 2012: 1ST REPORT CAL.587
• Feb 13, 2012: REFERRED TO FINANCE

S6469-2011 Meetings

Finance: Apr 25, 2012

S6469-2011 Calendars

Active List: May 2, 2012 , Floor Calendar: Apr 26, 2012 , Floor Calendar: Apr 30, 2012 , Floor Calendar: May 1, 2012 , Floor Calendar: May 2, 2012

S6469-2011 Votes

S6469-2011 Memo

BILL NUMBER:S6469

TITLE OF BILL:  An act to amend the state finance law, in relation to
the payment of interest due to not-for-profit organizations

PURPOSE: To require agencies to pay any prompt contracting interest due
with thirty days of the date the payment or payments required under a
contract approved late are made to a not-for-profit organization.

SUMMARY OF PROVISIONS: Section 1 of this bill amends Subdivision 2 of

Section 179-v of the State Finance Law to establish that a not-for-pro-
fit organization shall be entitled to receive all interest due from a
state agency pursuant to this Section within thirty days of the date the
payment or payments required under a contract are made to any such
organization. Provided, however, if monies from any appropriation or
appropriations as described in Subdivision 3 of Section 179-v of the
State Finance Law are not available for the payment of such interest,
such payment shall be made immediately after such monies become avail-
able.

Section 2 of this bill provides for an effective date of immediately
after this bill is signed into law.

PRIOR LEGISLATIVE HISTORY: This is a new proposal.

JUSTIFICATION: The Prompt Contracting law (Article 11-B of the State
Finance Law) establishes the requirements for interest that is due on
late contracts for grants, but does not establish when that interest
must be paid. This creates an incentive for agencies to pay interest
late in the year or not at all. This situation makes the law ineffective
and disadvantages not-for-profits.

The Comptroller urges passage of this legislation.

BUDGET IMPLICATIONS: None

EFFECTIVE DATE: This act shall take effect immediately.

S6469-2011 Text

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

                                    6469

                              I N  SENATE

                              February 13, 2012
                                 ___________

  Introduced  by Sen. DeFRANCISCO -- (at request of the State Comptroller)
    -- 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  the  payment  of
    interest due to not-for-profit organizations

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


    Section 1. Subdivision 2 of section 179-v of the state finance law, as
  added by chapter 166 of the laws of 1991, is amended to read as follows:

    2. Such organizations shall  receive  such  interest  payments  WITHIN
  THIRTY  DAYS  OF  THE  DATE  THE  PAYMENT OR PAYMENTS REQUIRED UNDER THE
  CONTRACT ARE MADE TO ANY SUCH ORGANIZATION; PROVIDED, HOWEVER, IF MONIES
  FROM ANY APPROPRIATION OR APPROPRIATIONS  AS  DESCRIBED  IN  SUBDIVISION
  THREE  OF  THIS SECTION ARE NOT AVAILABLE FOR THE PAYMENT OF SUCH INTER-
  EST, SUCH PAYMENT SHALL BE MADE IMMEDIATELY  AFTER  SUCH  MONIES  BECOME
  AVAILABLE.  SUCH  INTEREST PAYMENTS SHALL BE MADE at a rate equal to the
  rate set by the commissioner of taxation and finance for corporate taxes
  pursuant to paragraph one of subsection  (e)  of  section  one  thousand
  ninety-six  of  the  tax  law.  In  order  for a state agency to approve
  reimbursement of a not-for-profit organization at a rate other than  the
  interest  rate  stated  in  this section the not-for-profit organization
  shall submit documentation indicating the rate at which such funds  were
  borrowed,  the  lender of such funds and any other information requested
  by the state agency, attorney general  or  the  comptroller.  The  comp-
  troller  may disallow such portions of the interest that the comptroller
  deems unreasonable.
    S 2. This act shall take effect immediately.



   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD11124-03-1