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Who cares
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Sponsors
1 Co-sponsor
History
- Referred to finance
- Referred to rules
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 prompt payments to counties by the state
In Assembly Committee · Governmental Operations · Sponsor Kenneth Blankenbush
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S5909
Title of bill
An act to amend the state finance law, in relation to prompt payment to counties from the state
Purpose
To ensure that counties receive reimbursements from the State for mandated programs within a reasonable timeframe.
Summary
Section 1 amends subdivision 1 of section 179-f of the state finance law to add county governments to the states prompt payment law.
Section 2 provides the effective date.
Justification
As counties across the State face increasing budget challenges in already difficult economic times, it is imperative that the legislature take action to ensure reimbursements for State mandated programs are timely. At times, fiscal challenges at the State level lead to the delay in payment or withholding of reimbursement funds from the counties as a way to mitigate shortfalls for the State.
State law requires counties to pay for mandated services up front while the State delays payment for monies owed to counties. Some counties have turned to expensive borrowing to balance their books because of delays in State funds. St. Lawrence County, which recently announced it was borrowing up to $8.5 million-with interest charges that could run into the thousands of dollars-to help cover its expenses for the rest of the year. Franklin County is also considering short-term borrowing, even though it is owed $3.8 million by the state. Clinton County is owed $6.1 million.
If counties are late with payments they owe to Albany, they have to pay interest. It's only fair that the state should have to meet its obligations, or face consequences, so that local taxpayers aren't the ones left holding the bag.
Prompted by an outcry from private businesses and non-profit agencies that do business with the state, Albany was forced to enact a Prompt Payment Law in 1995 that required interest payments after a set deadline. Current law does not cover payments owed to counties and local governments.
The state also pays interest on income tax refunds that are delayed more than 45 days after the April 15 due date. Interest rates are set by the Commissioner of Taxation and Finance, and currently range from 2 percent to 12 percent, the same rates that would apply to payments under Senator Ritchie's bill.
Legislative history
New bill.
Fiscal implications
None to the state.
Effective date
This act shall take effect ninety days after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.