§ 179-v. Interest payments. 1. A not-for-profit organization shall be
entitled to interest payments pursuant to this section: (a) on those
moneys that would be due under the terms of the contract or renewal
contract from the scheduled commencement date or the date the
organization begins to provide services, whichever is later, until the
date the payment is made under the contract or renewal contract; or (b)
if a not-for-profit organization borrows funds to provide services
pursuant to a written directive by a state agency, provided however that
a not-for-profit organization may only receive interest payments on such
funds when such not-for-profit organization has received a written
directive but has been denied payment pursuant to section one hundred
seventy-nine-u of this article or did not obtain a loan from the
not-for-profit short-term revolving loan fund.

2. Such organizations shall receive such interest payments 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 comptroller may disallow such portions of the interest
that the comptroller deems unreasonable.

3. Any interest payments made pursuant to subdivisions one and two of
this section shall be made from appropriations for state operations that
are available for the administrative programs of the state agency which
contracted with the not-for-profit organization. In no event shall
interest payments be made from amounts appropriated for program
purposes.

4. The interest payment shall not reduce the amount of money that
otherwise will be payable to the not-for-profit organization under the
terms of the relevant contract.

5. No interest payments shall be made if the not-for-profit
organization receives an advance payment pursuant to section one hundred
seventy-nine-u of this article; provided, however, that if the contract
is not fully executed at the end of the period covered by such advance
payment, the not-for-profit organization may be eligible for interest
payments in respect of services performed after such period.

6. Should the attorney general or the comptroller disapprove a
contract or renewal contract, the provisions of this section shall not
be applicable.

7. a. If the timeframes for processing a contract are met and the
state agency is liable for interest due to a retroactive contract start
date, the state agency and the not-for-profit organization may mutually
agree to waive any interest owed to the not-for-profit organization
under the provisions of this article. Waiver of interest shall not be a
prerequisite to execution of such contract. If interest is so waived,
the state agency shall immediately provide the office of the state
comptroller, division of the budget and the not-for-profit organization
with the written waiver of interest agreement signed by the
not-for-profit organization and documentation (i) showing that the
applicable timeframes set forth in section one hundred seventy-nine-s or
one hundred seventy-nine-t of this article have been met, and (ii)
explaining the reason for a retroactive contract start date.

b. Not more than twenty days after the receipt of such written waiver
of interest agreement and required documentation, the comptroller shall
determine whether the waiver of interest is warranted. The comptroller
shall thereupon inform such state agency, the division of the budget,
and such not-for-profit organization of such determination. If such
determination concludes that a waiver of interest is unwarranted, such
state agency shall then immediately submit for the comptroller's
approval a voucher requesting the payment of interest to such
not-for-profit organization as required by this section. If such voucher
is not received within thirty days after the comptroller's
determination, the comptroller shall assess the amount of unpaid
interest in the manner prescribed by this section.