What's happening
This bill requires the creation of a payment verification program to ensure timely payment to certified subcontracted businesses on state contracts.
Why it matters
Increases transparency and accountability. by requiring prime contractors to submit proof of payment (such as images of cancelled checks) to subcontracted certified businesses, making it harder for contractors to delay or withhold payment without oversight.
Protects certified subcontractors (including MWBEs and other designated groups). by mandating direct contact to confirm receipt of payment, helping prevent exploitation or misreporting in state-funded projects.
Links payments to resolution of disputes. by requiring any discrepancies between reported and received payments to be resolved before the prime contractor can receive further state payments, giving leverage to subcontractors in payment disputes.
Mandates public awareness and contract compliance. by requiring the payment verification program to be published on official state websites and included in all relevant contract documents, which ensures that all parties are aware of and bound by these protections.
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Who cares
Headline styles
Verify Subcontractor Payments Fast
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to governmental operations
- Referred to governmental operations
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1508
2019-2020 Regular Sessions
IN ASSEMBLY
January 15, 2019
Introduced by M. of A. BICHOTTE -- read once and referred to the Committee on Governmental Operations
AN ACT to amend the executive law, in relation to instituting a payment verification program for certified businesses on subcontracts
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 311 of the executive law is amended by adding a new subdivision 5 to read as follows:
5. (a) The director shall establish a payment verification program for the purposes of ensuring that certified businesses on subcontracts, are able to confirm that such certified business has received prompt payment from a contractor within fifteen days of a contractors submission of an invoice to the state. Such program shall:
(i) Utilize the state's electronic tracking system to monitor compliance with prompt payment as set forth in this paragraph;
(ii) Ensure that certified businesses on subcontracts are contacted to ensure payment was received;
(iii) Require that discrepancies between the payment amount reported by certified businesses on subcontracts and the payment amount actually received from the prime contractor, be resolved before any additional payments are made to the prime contractor; and
(iv) Require that prime contractors submit to the state an image of the cancelled check written to the certified business on subcontract for each invoice.
(b) Such program shall be published on the New York state contract system website, in solicitation documents, and in contract documents.
(c) Compliance with the payment verification program shall be a mandatory provision of a prime contract.
§ 2. This act shall take effect immediately; provided, however, that the amendments to section 311 of the executive law made by section one of this act shall not affect the expiration of such section and shall be deemed to expire therewith.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00189-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.