21 CRR-NY 9002.4NY-CRR
21 CRR-NY 9002.4
21 CRR-NY 9002.4
9002.4 General provisions.
(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.
21 CRR-NY 9002.4
Current through June 30, 2021
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