S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   11159
 
                           I N  A S S E M B L Y
 
                               June 12, 2018
                                ___________
 
 Introduced by COMMITTEE ON RULES -- (at request of M. of A. Bichotte) --
   read once and referred to the Committee on Governmental Operations
 
 AN  ACT to amend the executive law, in relation to instituting a payment
   verification program for certified businesses on subcontracts
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Section 311 of the executive law is amended by adding a new
 subdivision 5 to read as follows:
   5. (A) THE DIRECTOR SHALL ESTABLISH A PAYMENT VERIFICATION PROGRAM FOR
 THE  PURPOSES OF ENSURING THAT CERTIFIED BUSINESSES ON SUBCONTRACTS, ARE
 ABLE TO CONFIRM THAT SUCH CERTIFIED BUSINESS HAS RECEIVED PROMPT PAYMENT
 FROM A CONTRACTOR WITHIN FIFTEEN DAYS OF A CONTRACTORS SUBMISSION OF  AN
 INVOICE TO THE STATE. SUCH PROGRAM SHALL:
   (I)  UTILIZE THE STATE'S ELECTRONIC TRACKING SYSTEM TO MONITOR COMPLI-
 ANCE WITH PROMPT PAYMENT AS SET FORTH IN THIS PARAGRAPH;
   (II) ENSURE THAT CERTIFIED BUSINESSES ON SUBCONTRACTS ARE CONTACTED TO
 ENSURE PAYMENT WAS RECEIVED;
   (III) REQUIRE THAT DISCREPANCIES BETWEEN THE PAYMENT  AMOUNT  REPORTED
 BY  CERTIFIED BUSINESSES ON SUBCONTRACTS AND THE PAYMENT AMOUNT ACTUALLY
 RECEIVED FROM THE PRIME CONTRACTOR, BE RESOLVED  BEFORE  ANY  ADDITIONAL
 PAYMENTS ARE MADE TO THE PRIME CONTRACTOR; AND
   (IV)  REQUIRE  THAT  PRIME CONTRACTORS SUBMIT TO THE STATE AN IMAGE OF
 THE CANCELLED CHECK WRITTEN TO THE CERTIFIED BUSINESS ON SUBCONTRACT FOR
 EACH INVOICE.
   (B) SUCH PROGRAM SHALL BE PUBLISHED ON THE  NEW  YORK  STATE  CONTRACT
 SYSTEM WEBSITE, IN SOLICITATION DOCUMENTS, AND IN CONTRACT DOCUMENTS.
   (C) COMPLIANCE WITH THE PAYMENT VERIFICATION PROGRAM SHALL BE A MANDA-
 TORY PROVISION OF A PRIME CONTRACT.
   §  2.  This act shall take effect immediately; provided, however, that
 the amendments to section 311 of the executive law made by  section  one
 of this act shall not affect the expiration of such section and shall be
 deemed to expire therewith.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15410-01-8