S T A T E O F N E W Y O R K
________________________________________________________________________
9174--A
R. R. 14
I N A S S E M B L Y
February 1, 2016
___________
Introduced by M. of A. BLAKE, AUBRY -- read once and referred to the
Committee on Ways and Means -- amended on the special order of third
reading, ordered reprinted as amended, retaining its place on the
special order of third reading
AN ACT to amend the state finance law, in relation to requiring state
agencies to pay small businesses within fifteen days of receipt of an
invoice; and to amend a chapter of the laws of 2015 amending the state
finance law relating to requiring state agencies to pay small busi-
nesses within fifteen days of receipt of an invoice, as proposed in
legislative bills numbers S.5283-A and A.6902-B, in relation to making
technical corrections
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivisions 2 and 6 of section 179-f of the state finance
law, subdivision 2 as amended and subdivision 6 as added by a chapter of
the laws of 2015 amending the state finance law relating to requiring
state agencies to pay small businesses within fifteen days of receipt of
an invoice, as proposed in legislative bills numbers S.5283-A and
A.6902-B, subdivision 2 as separately amended by a chapter of the laws
of 2015 amending the state finance law relating to the determination of
eligibility for payment of interest on amounts owed to contractors, as
proposed in legislative bills numbers S.4929 and A.7579, are amended to
read as follows:
2. The required payment date shall be thirty calendar days, excluding
legal holidays, provided, however, that for a small business the
required payment date shall be fifteen calendar days, excluding legal
holidays, ABSENT A SHOWING BY THE CONTRACTING AGENCY OF CIRCUMSTANCES
BEYOND ITS CONTROL, PROVIDED THAT THE SMALL BUSINESS SUBMITS ITS INVOICE
ELECTRONICALLY, IN CONFORMANCE WITH THE POLICIES AND PROCEDURES OF THE
ACCOUNTING AND FINANCIAL MANAGEMENT SYSTEM OF STATE GOVERNMENT AND IDEN-
TIFIES THAT IT IS SEEKING EXPEDITED PAYMENT AS A SMALL BUSINESS, 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:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09804-14-6
A. 9174--A 2
(a) the state comptroller in the course of his or her 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) a proper invoice must be examined by the federal government prior
to payment;
(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;
(f) the required payment date is modified in accordance with subdivi-
sion three of this section; or
(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 requirements, 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 (e) or (g) of this subdivision shall
extend the required payment date by an equal period of time, provided,
however, that for small businesses, the required payment date shall be
fifteen calendar days, excluding legal holidays, after such conditions
have been satisfied or rectified, and provided further that all reason-
able and practicable efforts shall be taken to satisfy or rectify such
conditions as soon as possible.
6. As used in this section, "small business" shall mean a business
whose primary place of business is in New York state, has a significant
business presence in the state, is independently owned and operated, not
dominant in its field, and employs no more than [three] TWO hundred
employees AT THE TIME OF THE AWARD CONTRACTING AND PAYMENT. THE "SMALL
BUSINESS" SHALL, UPON REQUEST, PROVIDE THE CONTRACTING ENTITY WITH
SUFFICIENT DOCUMENTATION TO REFLECT AND CONFIRM ITS STATUS AS A SMALL
BUSINESS.
S 2. Section 2 of a chapter of the laws of 2015 amending the state
finance law relating to requiring state agencies to pay small businesses
within fifteen days of receipt of an invoice, as proposed in legislative
bills numbers S.5283-A and A.6902-B, is amended to read as follows:
S 2. This act shall take effect on the [one] THREE hundred [eightieth]
SIXTY-FIFTH day after it shall have become a law and shall apply only to
invoices received after such date.
S 3. This act shall take effect on the same date and in the same
manner as a chapter of the laws of 2015 amending the the state finance
law relating to requiring state agencies to pay small businesses within
fifteen days of receipt of an invoice, as proposed in legislative bills
numbers S.5283-A and A.6902-B, takes effect.