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.

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A9342-2011 Actions

• Jun 4, 2012: substituted by s6469
• Jun 1, 2012: advanced to third reading cal.702
• May 31, 2012: reported
• May 1, 2012: reported referred to ways and means
• Feb 21, 2012: referred to governmental operations

A9342-2011 Text

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

                                    9342

                            I N  ASSEMBLY

                              February 21, 2012
                                 ___________

  Introduced  by  M.  of A. ENGLEBRIGHT, SCHIMMINGER, SWEENEY, WEISENBERG,
    COOK, CAHILL, SCARBOROUGH, COLTON, LAVINE, JAFFEE, TITONE,  M. MILLER,
    LINARES,  ROBERTS -- Multi-Sponsored by -- M. of A. BRINDISI, BRONSON,
    GOTTFRIED, RAMOS, P. RIVERA, RUSSELL, THIELE --  (at  request  of  the
    State  Comptroller)  --  read  once  and  referred to the Committee on
    Governmental Operations

  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