What's happening
Writing a plain-English summary… Track this bill to get it by email.
Why it matters
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Sponsors
No co-sponsors yet.
History
- Vetoed memo.182
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading rules cal.99
- Substituted for A8461A
- Referred to governmental operations
- Delivered to assembly
- Passed senateVote 60–0
- Advanced to third reading
- 2nd report cal.
- 1st report cal.734
Show 11 earlier actions
- Print number 5671a
- Amend and recommit to finance
- Referred to finance
- Returned to senate
- Died in assembly
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 62–0
- Ordered to third reading cal.1330
- Committee discharged and committed to rules
- 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.
Relates to the allowable amount of a letter of credit used as guarantee of performance of a state procurement contract
Assembly Floor Calendar · Sponsor David Gantt
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S5671A REVISED 04/19/12
Title of bill
An act to amend the state finance law, in relation to the amount of a letter of credit used as guarantee of performance of a state procurement contract
Purpose
To allow the commissioner or state agency discretion as to whether or not to require a bond or other guarantee of performance, and to approve the amount, form and sufficiency thereof.
Summary of provisions
Section One - Amends state finance law to allow the commissioner or state agency discretion as to whether or not to require a bond or other guarantee of performance, and to approve the amount, form and sufficiency thereof. If the letter of credit, either by itself or in conjunction with another form or guarantee is used for this purpose, the amount of the letter of credit shall not exceed three percent of the total contract award amount. These restrictions shall not apply to bond requirements issued pursuant to this section. An agency may require other guarantees of performance in addition to a letter of credit as provided in this paragraph.
Section Two - Establishes the effective date.
Justification
Presently, there is no uniformity or guidelines as to the amount or type of security a state agency or any other state entity requires in the awarding of state contracts or projects. A state agency can require a letter of credit for a certain amount as a security interest in a project or the agency can require a letter of credit and/or a bond as the security. The state can also proceed in awarding a contract or project without a security interest. Since there is no uniform standard, this legislation limits the amount required for a letter of credit only, for any project to the level of risk involved with the contract and in no case shall the letter of credit exceed three percent of the total contract. This legislation does not limit the amounts required for a bond security interest.
Legislative history
New Bill.
Fiscal implications
None to the State.
Effective date
This act shall take effect immediately; provided, however, that the amendments to paragraph d of subdivision 10 of section 163 of the state finance law made by section one of this act shall not affect the repeal of such section and shall be deemed repealed therewith
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.