Current through Register Vol. 46, No. 39, September 25, 2024
(a)
Payment request procedure. Contractors owed money by the authority shall
deliver a proper invoice to the designated payment office. The designated
payment office will log the receipt date of each invoice, and send it to the
department unit within the authority that received the goods, property or
services from the contractor for review and verification of the contractor's
performance in accordance with the contract. Contractors with contracts which
provide for payment at specific dates or intervals shall also be required to
provide a proper invoice which certifies that the obligations required under
such contract have been performed prior to such date(s) or during such
interval(s), and review and verification of the work of these contractors will
take place upon receipt of such proper invoice; payment shall be made in
accordance with the terms of such contracts.
(b) Prompt payment schedule. The schedule of
the time in which the authority will make prompt payment under a contract is as
follows:
(1) For invoices received on or
before June 30, 1989, payment will be made by the authority within 45 calendar
days after receipt of a proper invoice.
(2) For invoices received on or after July 1,
1989, payment will be made by the authority within 30 calendar days, excluding
legal holidays, after receipt of a proper invoice.
(3) For contracts which provide for payment
at one or more specific dates or intervals, payment will be made in accordance
with the terms of such contracts, but interest shall only be payable if payment
is not made within the time provided in paragraphs (1) and (2) of this
subdivision.
(4) This schedule will
not apply in those instances where payment is being delayed by reason of any of
the exceptions listed in subdivision (e) of this section, or where the time in
which to make payment is being tolled for any of the reasons listed in
subdivision (f) of this section, in which cases the time for payment shall be
as there provided.
(c)
Interest computation. If the authority fails to make payment in accordance with
the prompt payment schedule set forth in subdivision (b) of this section, the
authority will pay interest to the affected contractor at the rate equal to
that set by the State Tax Commission for corporate taxes pursuant to section
1096 (e) of the Tax
Law.
(d) Funds available to pay
interest penalties. The authority will pay interest as provided herein with
monies available to the authority for operating and administrative expenses
pursuant to its approved budget.
(e) Extension of payment time. Any of the
following facts, conditions or situations are determined by the authority to be
exceptions to the prompt payment schedule set forth in subdivision (b) of this
section, and to justify extensions of the time by which payment must be made
(the amount of time of such extension being as established by the authority's
treasurer consistent with this Part, with notice provided to the contractor):
(1) statutory or contract provisions
requiring an inspection period or an audit prior to payment;
(2) the absence of a State appropriation
which is necessary to authorize payment;
(3) a requirement for Federal government
examination of a proper invoice prior to payment;
(4) extraordinary delay between the time of
the provision of goods, property or services by a contractor and the receipt of
a proper invoice by the authority;
(5) failure by a contractor to submit
documents required by the contract or reasonably required by the authority
prior to payment; or
(6) where time
is taken in the processing of an invoice by the State Department of Taxation
and Finance, the State Division of the Budget, the Office of the State
Comptroller, or any other entity external to the authority that is or may be
required by statute, regulation or contract to approve or process authority
payments.
(f) Defects or
improprieties.
(1) The following facts or
conditions toll the prompt payment schedule set forth in subdivision (b) of
this section:
(i) a reasonable belief by the
authority in the existence of any defect(s), including any incompleteness or
failure of compliance with the terms of the contract, in or with respect to the
goods, property or services delivered;
(ii) a reasonable belief by the authority in
the existence of any defect(s) in the invoice; or
(iii) a reasonable belief by the authority in
suspected impropriety of any kind.
(2) In order to toll the prompt payment
schedule without penalty, the authority has 15 calendar days after receipt of
an invoice to send a contractor notification of such defects or improprieties.
Authority notification shall be by letter to the contractor setting forth any
such defect or impropriety in reasonable detail, sent to the address indicated
for notices under the contract or, if no such address is provided, sent to the
address set forth in the invoice; provided that, in the event that the
authority fails to so notify the contractor within such 15 days, the sole
effect of such failure to so notify the contractor shall be that the number of
days allowed for payment shall be reduced by the number of days between such
15th day and the date of the authority's transmitting such notification. In the
event that the authority fails to provide reasonable grounds for its contention
that any such defect or impropriety exists, the date by which contract payment
shall be made shall be calculated from the date of receipt of an
invoice.
