Relates to prompt payments to local governments of state aid payments associated with disaster relief

Summary of specific provisions

This bill would amend section 179-d of the state finance law, to provide that the prompt payment of funds due to local government units associated with storm relief and recovery is vital to the continued economic viability of the state as a whole. It further would provide that storm-ravaged communities must be provided relief in a manner that allows for expedited repair of municipal infrastructure so that residents of such communities can continue their day-to-day lives.

This bill would additionally amend section 179-e of the state finance law, to provide that a unit of local government eligible to receive such prompt payment of aid would include counties, cities, towns, villages and school districts.

This bill would further amend section 179-f of the state finance law to provide that each state agency which is required to make a payment from state funds pursuant to a contract or pursuant to a state or federal statutory or regulatory obligation to make a payment to a unit of local government where such payment is meant to assist such unit with recovery from a natural disaster and which does not make such payment by the required payment date shall make an interest payment to the contractor or unit of local government in accordance with this article on the amount of the payment which is due, unless failure to make such payment is the result of a lien, attachment, or other legal process against the money due said contractor or unit of local government, or unless the amount of the interest payment is less than ten dollars. The amendment proposed by this bill to section 179-f would also provide that for purposes of a payment to a unit of local government where such payment is meant to assist such unit with recovery from a natural disaster, the required payment date shall be no later than required by law.

Pursuant to this section, the required payment date shall be 30 calendar days, excluding legal holidays, or in the case of final payments on highway contraction contracts 75 calendar days, excluding legal holidays, after the receipt of an invoice for the amount due.

It would be the duty of the comptroller to develop and implement a procedure for calculating the amount of interest, if any, due to a unit of local government, and to submit a detailed special report to the governor and the legislature within 60 days after the conclusion of each fiscal year.

Justification

There are a multitude of firms, organizations, and local government units that do business and provide for storm relief and recovery with the state of New York.

Unjustified delays in providing state funds associated with storm relief and recovery, which require prompt payment in a timely manner for services rendered to rebuild a disaster ravaged community discourage rebuilding, recovery and relief efforts necessary to allow such communities to continue their day-to-day lives.

Following a severe storm or natural disaster, the expedited repair of municipal infrastructures, schools, roads, buildings and community structures, is extremely necessary to allow residents of communities to continue their day-to-day lives and futures and to ensure economic stability and viability of the state as a whole. It is therefore imperative that the state government provide for the prompt and timely payment to local government, the aid funds necessary to permit storm relief and recovery to take place in an expedited manner.

Prior legislative history

This is a new bill.

FISCAL IMPLICATIONS

This program would be subject to budgetary appropriations.

Effective date

This act would take effect immediately.