A 634: Relates to prompt payments to counties by the state; provides if prompt payment is not provided an interest payment shall be made to the contractor or county government.

  
  STATE OF NEW YORK ________________________________________________________________________ 634 2025-2026 Regular Sessions  IN ASSEMBLY (Prefiled) January 8, 2025 ___________ Introduced by M. of A. BLANKENBUSH, ANGELINO, BRABENEC, DeSTEFANO, DURSO, HAWLEY, McDONOUGH, MILLER, SMULLEN, TAGUE -- read once and referred to the Committee on Governmental Operations AN ACT to amend the state finance law, in relation to prompt payment to counties from the state The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision 1 of section 179-f of the state finance law, as 2 amended by chapter 332 of the laws of 1989, is amended to read as 3 follows: 4 1. Each state agency which is required to make a payment from state 5 funds pursuant to a contract and which does not make such contract 6 payment by the required payment date shall make an interest payment to 7 the contractor or county government in accordance with this article, or 8 other provisions of law, on the amount of the contract payment which is 9 due, unless failure to make such contract payment is the result of a 10 lien, attachment, or other legal process against the money due said 11 contractor or county government, or unless the amount of the interest 12 payment as computed in accordance with the provisions of section one 13 hundred seventy-nine-g of this article is less than ten dollars. A pro 14 rata share of such interest shall be paid by the contractor or subcon- 15 tractor, as the case may be, to subcontractors and materialmen in a 16 proportion equal to the percentage of their pro rata share of the 17 contract payment. Such pro rata share of interest shall be due to such 18 subcontractors and materialmen only for those payments which are not 19 paid to such subcontractors and materialmen prior to the date upon which 20 interest begins to accrue between the state agency and the contractor. 21 Such pro rata share of interest shall be computed daily until such 22 payments are made to the subcontractors and materialmen. 23 § 2. This act shall take effect on the ninetieth day after it shall 24 have become a law. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01887-01-5