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History
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 60–0
- Advanced to third reading
- 2nd report cal.
- 1st report cal.159
- Referred to finance
- Referred to finance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Requires state agencies to identify and remedy impediments to their prompt processing and payment of bills
In Assembly Committee · Ways And Means · Sponsor David Koon
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the state finance law, in relation to reducing late payments to contractors
Purpose of bill
To reduce late payments of moneys owed to contractors by state agencies by requiring the Division of the Budget to produce an action plan with agency reduction targets, requiring that interest on past due bills be paid from the agency's administrative budget rather than program appropriations, and labeling invoices of small business in order to expedite their processing.
Summary of provisions
Section 1: States the legislative intent.
Section 2: Adds a new subdivision four to § 179-m of the state finance law requiring the Division of the Budget to develop an action plan for reducing late payments to contractors.
Section 3: Amends § 179-h of the state finance law to require that interest be paid from the agency's administrative appropriations.
Section 4: Amends subdivision (d) of §139-g of the state finance law to expand labeling of invoices from small businesses.
Section 5: Sets the effective date.
Justification
Interest penalties paid by the state for overdue bills have been over a million dollars each fiscal year since 1994-95, as shown by the Comptroller's annual reports issued pursuant to subdivision three of section 179-m of the state finance law. This inefficiency and tardiness in meeting the state's obligations is unacceptable. Late payments and the associated interest represent a waste of taxpayers' money, a hardship for businesses, and a disincentive for contractors to do state work. It is the intent of this legislation to require the division of the budget and the state's executive agencies to identify and remedy impediments to prompt processing and payment of the state's bills. The state's failure to pay bills on time is especially injurious to small businesses with fewer financial resources. At least one other state, California, provides stamps to small business so they can label their invoices for priority processing; this bill would expand an existing statutory requirement for labeling invoices for services contracts to include construction and commodities contracts as well.
Legislative history
FISCAL IMPLICATIONS : Should save the state money by reducing total late interest penalties.
Effective date
Thirty days after it becomes law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.