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

                                  7579

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              May 19, 2015
                               ___________

Introduced  by M. of A. PEOPLES-STOKES -- (at request of the State Comp-
  troller) -- read once and referred to the  Committee  on  Governmental
  Operations

AN  ACT to amend the state finance law, in relation to the determination
  of eligibility for payment of interest on amounts owed to contractors

  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-f of the state finance law, as
amended  by  chapter  153  of  the  laws  of 1984, is amended to read as
follows:
  2. The required payment date shall be thirty calendar days,  excluding
legal holidays, 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:
  (a) the state comptroller in the course of his 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)] (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;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07085-01-5
              

A. 7579                             2

  [(g)]  (F)    the required payment date is modified in accordance with
subdivision three of this section; or
  [(h)]  (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 require-
ments, 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)]  (E) or [(h)] (G) of this
subdivision shall extend the required payment date by an equal period of
time.
  S 2. This act  shall  take  effect  immediately  and  shall  apply  to
invoices submitted on and after such date.