BILL NUMBER: S2284
SPONSOR: WEBB
 
TITLE OF BILL:
An act to amend the state finance law, in relation to providing for
prompt payment by contractors receiving public funds of amounts owed to
small businesses and minority-owned business enterprises
 
PURPOSE::
Relates to providing for prompt payment by contractors receiving public
funds of amounts owed to small businesses and minority-owned business
enterprises
 
SUMMARY OF PROVISIONS::
Section 1 Creates a new section 149 within Article 9 of State Finance
Law on prompt contracting and payments for small business and minority
and women business enterprise subcontractors, adds prompt payment
language from Article 9 Section 139-F of the State Finance Law, includes
the definitions for covered project, paid for in whole or in part out of
public funds, contract, contractor, sub contractor small business and
minority and women owned business enterprises to prompt payment
language.
Section 2 stipulates the effective date.
 
JUSTIFICATION::
Many small business and MWBE subcontractors cite cash flow as a major
obstacle to business growth and provision of subcontracted services.
This bill aims to ensure that contractors and the State are following
best commercial practices by following the "prompt payment" principle
for subcontractors when a project is being funded with public funds.
 
LEGISLATIVE HISTORY::
New bill.
 
FISCAL IMPLICATIONS::
None.
 
EFFECTIVE DATE::
Immediately.