Establishes that not-for-profit organizations and public benefit corporations shall be entitled to all prompt contracting interest due from a state agency at the time of the first payment.
Ayes (36): DeFrancisco, Bonacic, Farley, Flanagan, Golden, Griffo, Grisanti, Hannon, Lanza, Larkin, LaValle, Little, Marcellino, Nozzolio, O'Mara, Ranzenhofer, Robach, Savino, Seward, Young, Valesky, Martins, Krueger, Diaz, Dilan, Rivera, Breslin, Montgomery, Parker, Peralta, Perkins, Stavisky, Squadron, Kennedy, Espaillat, Hassell-Thompson
Ayes W/R (1): Gianaris
Ayes (60): Addabbo, Avella, Ball, Bonacic, Boyle, Breslin, Carlucci, DeFrancisco, Diaz, Dilan, Espaillat, Farley, Felder, Flanagan, Gallivan, Gianaris, Gipson, Golden, Griffo, Grisanti, Hannon, Hassell-Thomps, Hoylman, Kennedy, Klein, Krueger, Lanza, Larkin, Latimer, LaValle, Libous, Little, Marcellino, Marchione, Martins, Maziarz, Montgomery, Nozzolio, O'Brien, O'Mara, Parker, Peralta, Perkins, Ranzenhofer, Ritchie, Rivera, Robach, Sampson, Sanders, Savino, Serrano, Seward, Skelos, Squadron, Stavisky, Stewart-Cousins, Tkaczyk, Valesky, Young, Zeldin
Excused (1): Smith
TITLE OF BILL: An act to amend the state finance law, in relation to the payment of interest due to not-for-profit organizations and public benefit corporations
PURPOSE: To require agencies to pay any prompt contracting interest due within 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 - amends Subdivision 2 of Section 179-v of the State Finance Law to establish that a not-for-profit 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 available.
Section 2 - provides for an effective date of immediately after this bill is signed into law.
PRIOR LEGISLATIVE HISTORY: 2012 - S.6469/A.9342
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 include public benefit corps and 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 and public benefit corps.
BUDGET IMPLICATIONS: None
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 6482 IN SENATE January 29, 2014 ___________Introduced by Sen. DeFRANCISCO -- 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 and public benefit corpo- rations 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 OR PUBLIC BENEFIT CORPO- RATION 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 comptroller 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. LBD13727-01-4