S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9251
 
                             I N  S E N A T E
 
                               May 12, 2022
                                ___________
 
 Introduced  by  Sen. KENNEDY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 AN ACT to amend the executive law, in relation  to  design  professional
   overhead audit recovery
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The executive law is amended by adding a new section  170-f
 to read as follows:
   §  170-F.  DESIGN  PROFESSIONAL OVERHEAD AUDIT RECOVERY. 1. AS USED IN
 THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A) "DESIGN PROFESSIONAL" MEANS  ANY  CORPORATION,  LIMITED  LIABILITY
 COMPANY,  PARTNERSHIP  OR  OTHER  BUSINESS  ENTITY LEGALLY AUTHORIZED TO
 PRACTICE ANY OF  THE  PROFESSIONS  REGULATED  BY  ARTICLES  ONE  HUNDRED
 FORTY-FIVE,  ONE  HUNDRED FORTY-SEVEN AND ONE HUNDRED FORTY-EIGHT OF THE
 EDUCATION LAW.
   (B) "STATE AGENCY" SHALL MEAN (I) ANY STATE DEPARTMENT, (II) ANY DIVI-
 SION, BOARD, COMMISSION OR BUREAU OF ANY  STATE  DEPARTMENT,  (III)  THE
 STATE  UNIVERSITY  OF  NEW  YORK  AND  THE  CITY UNIVERSITY OF NEW YORK,
 INCLUDING ALL THEIR CONSTITUENT UNITS, OR (IV) A BOARD,  A  MAJORITY  OF
 WHOSE  MEMBERS  ARE  APPOINTED BY THE GOVERNOR OR WHO SERVE BY VIRTUE OF
 BEING STATE OFFICERS OR EMPLOYEES AS DEFINED IN SUBPARAGRAPH  (I),  (II)
 OR (III) OF PARAGRAPH (I) OF SUBDIVISION ONE OF SECTION SEVENTY-THREE OF
 THE PUBLIC OFFICERS LAW.
   (C)  "STATE  AUTHORITY"  MEANS  A  PUBLIC  AUTHORITY OR PUBLIC BENEFIT
 CORPORATION CREATED BY OR EXISTING UNDER THE LAWS OF THE STATE, WITH ONE
 OR MORE OF ITS MEMBERS APPOINTED BY THE GOVERNOR OR WHO SERVE AS MEMBERS
 BY VIRTUE OF HOLDING A CIVIL OFFICE OF THE STATE, OTHER THAN  AN  INTER-
 STATE  OR INTERNATIONAL AUTHORITY OR PUBLIC BENEFIT CORPORATION, INCLUD-
 ING SUBSIDIARIES OF SUCH PUBLIC AUTHORITY OR PUBLIC BENEFIT CORPORATION.
   (D) "PAYCHECK PROTECTION PROGRAM LOAN" MEANS ANY  LOAN  AUTHORIZED  OR
 ISSUED  PURSUANT TO PUBLIC LAW 116-136, THE CORONAVIRUS AID, RELIEF, AND
 ECONOMIC SECURITY ACT.
   2. NO STATE AGENCY OR STATE AUTHORITY SHALL DEMAND ANY CREDIT, RECOUP-
 MENT, RATE ADJUSTMENT OR ANY OTHER PAYMENT FROM A DESIGN PROFESSIONAL ON
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15861-01-2
 S. 9251                             2
 
 THE BASIS OF SUCH DESIGN PROFESSIONAL HAVING RECEIVED FORGIVENESS  ON  A
 PAYCHECK  PROTECTION  ACT LOAN. ANY STATE AGENCY OR STATE AUTHORITY THAT
 PURSUANT TO THE APPLICATION OF ANY AUDIT RULE OR  REQUIREMENT  INCLUDING
 BUT NOT LIMITED TO THE FEDERAL ACQUISITION REGULATION COLLECTS, RECOUPS,
 OR CLAWS BACK ANY MONEY FROM A DESIGN PROFESSIONAL ON THE BASIS OF THEIR
 HAVING  RECEIVED  A PAYCHECK PROTECTION PROGRAM SHALL CREDIT SUCH DESIGN
 PROFESSIONAL IN AN AMOUNT NO LESS THAN THE  AMOUNT  RECOVERED  NO  LATER
 THAN  ONE  HUNDRED  EIGHTY  DAYS FROM ANY SUCH COLLECTION, RECOUPMENT OR
 CLAW BACK. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, SUCH CREDIT SHALL
 BE DEEMED LOAN FORGIVENESS AND SHALL NOT BE USED IN ANY TAX, OVERHEAD OR
 INDIRECT LABOR COST CALCULATION BY ANY STATE AGENCY OR AUTHORITY.
   § 2. This act shall take effect immediately.