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History
- 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.
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:S3332
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 state's 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 timely reimbursements for State mandated programs. 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. Currently, payments from the state to a contractor or subcontractor under § 179-f of the Finance Law must be paid by the required payment date or are subject to interest payments. This legislation adds county governments to the entities requiring prompt payment under this section of the Finance Law, known as the Prompt Payment Law.
The Prompt Payment Law was enacted in 1995 at the bequest of private businesses and nonprofit agencies that contract with the state and where constantly subject to delayed payments. The law requires interest payments after a set deadline and also forces the state to pay 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.
It is essential that these provisions of the Prompt Payment Law apply to counties. Under the current law, counties must pay up front for mandated services while the State may delay payment for monies owed to counties. Some counties have turned to expensive borrowing to balance their books because of delays in State payments. St. Lawrence County recently announced it was borrowing up to $8.5 million, with interest charges nearing thousands of dollars, to help cover its annual expenses. Franklin County is also considering short-term borrowing, as 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 the State, they have to pay interest. Analogously, the State should have to meet its obligations owed to counties or face interest payment consequences, just as it must do with private entities. While these payments remain unpaid local taxpayers are left footing the bill. The legislature must hold the State accountable for its owed payments and foster the
financial wellbeing of our counties. The enactment of this legislation will achieve those dual objectives.
Legislative history
2013-2014: S.3695 - referred to finance / A.4907 - referred to governmental operations 2011-2012: S.5909 - referred to finance / A.9519 - referred to governmental operations
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.